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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 6 cities (100%) meet this threshold. You've got plenty of choices. We ran the numbers on 6 cities in Tennessee using 2026 census, rent, and salary data. Memp…
#1 Ranked: Memphis — cost index 86, rent $1,234/mo, income $51,211
6 of 6 cities keep rent under 30% of $150K
6 of 6 cities keep rent under 30% of $150K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Memphis | 0% | 9.55% | 0.56% | $109,483 |
2Clarksville | 0% | 9.55% | 0.56% | $109,483 |
3Chattanooga | 0% | 9.55% | 0.56% | $109,483 |
4Murfreesboro | 0% | 9.55% | 0.56% | $109,483 |
5Knoxville | 0% | 9.55% | 0.56% | $109,483 |
6Nashville | 0% | 9.55% | 0.56% | $109,483 |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 6 cities (100%) meet this threshold. You've got plenty of choices. We ran the numbers on 6 cities in Tennessee using 2026 census, rent, and salary data. Memphis comes out on top — here's the full ranking and analysis.
Why Memphis ranks #1: the numbers tell a clear story. At 86 on the cost index, residents save roughly 26% less than the typical American. Rent sits at $1,234/month while the median household pulls in $51,211/year. The Housing category is particularly strong at 66, though Healthcare (89) lags behind. Home prices average $142,870 — $324,500 below the national median. If you've been scrolling through listings in high-cost metros and feeling defeated, look at these numbers again. Seriously. The difference between renting here and renting in a major coastal city could literally fund a retirement account. That's not hyperbole — run the math yourself. A thousand dollars a month saved, compounded over a decade, is a down payment on a house. In this city, that math actually works.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Memphis | $1,234 | 10% | 86 | Details |
| 2 | Clarksville | $1,376 | 11% | 96 | Details |
| 3 | Chattanooga | $1,499 | 12% | 98 | Details |
| 4 | Murfreesboro | $1,683 | 13% | 106 | Details |
| 5 | Knoxville | $1,708 | 14% | 104 | Details |
| 6 | Nashville | $1,772 | 14% | 108 | Details |
618,639 residents · Tennessee
Dive into Memphis's numbers: cost index 86 (26 points below national average), rent $1,234/month, income $51,211, and a home price of $142,870. The city's cost profile isn't flat — Housing is the cheapest category at 66, while Healthcare runs 89. As a major city with 618,639 residents, amenities and job markets are robust.
180,716 residents · Tennessee
Here's Clarksville by the numbers — and there's a lot to like (and a little to watch). Cost index: 96. Rent: $1,376/month — a detail that tends to get overlooked — . Income: $66,786/year. Home price: $316,024. Population: 180,716. The strongest category is Utilities at 89; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $6,228 per year vs. the national median. The delta here is big enough to fund a retirement account.
187,030 residents · Tennessee
A closer look at Chattanooga: the cost index of 98 breaks down to a Utilities index of 90 (strongest category) and a Healthcare index of 101 (weakest). Median rent is $1,499/month — 21% below the national median — while household income sits at $61,028, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
165,430 residents · Tennessee
What does daily life actually cost in Murfreesboro? Start with the 26% rent-to-income ratio — tight but manageable for most households. On the category level, Utilities (index 98) is where the real savings show up, while Housing (index 116) is the line item most likely to surprise newcomers. Income at $76,241 and homes at $421,928 round out a profile that ranks #4 for clear reasons.
198,162 residents · Tennessee
The numbers for Knoxville are straightforward: 104 on the cost index, $1,708/month rent, $50,994 income. Not the most exciting entry in the list, but solid. That's more or less in line with the region.
We calculate what percentage of a $150K gross salary goes to median rent. Cities where rent consumes less of your paycheck rank higher. We also factor in estimated take-home pay after federal taxes, FICA (7.65%), and state income tax. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Memphis ranks #1 in Tennessee for this analysis with a cost index of 86 and median income of $51,211.
Yes. On a $150K salary in Memphis, rent would consume about 10% of your gross monthly income. Financial experts recommend keeping rent under 30%. You're well within that guideline.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Memphis (ranked #1) has a cost index of 86 and rent of $1,234/mo, while Nashville (ranked #6) has a cost index of 108 and rent of $1,772/mo — a 22-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Memphis is $1,234/month as of 2026, based on Zillow's Observed Rent Index. This is $661 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 0% state income tax, estimated take-home on $150K in Memphis is approximately $109,483/year ($9,124/month). After median rent of $1,234/month, you'd have roughly $94,675/year for all other expenses.
The median home price in Memphis is $142,870, which is 2.8× the local median income. That's within the standard 3.5× affordability rule for most local earners. The national median home price is $467,370.
Tennessee has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 9.55%, and the effective property tax rate is 0.56%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.