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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Read this before you sign a lease anywhere: 0 of 6 cities keep rent under 30% of $30K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $30K salary, 0 cities (0%) meet this threshold. That's a tough market (and that gap …
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 — for better or worse — . 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. For anyone relocating from a high-cost market, this will feel like a raise (that's pre-tax, of course).
187,030 residents · Tennessee
In plain English: Chattanooga earns its position at #3 through a combination that's hard to replicate. The 98 cost index sits 14 points below the national baseline, and the $61,028 — for better or worse — median income means purchasing power here is amplified by the low cost base. Homes list at $314,306 — $153,064 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 90, while Healthcare trails at 101.
165,430 residents · Tennessee
Murfreesboro comes in at #4. And most of the time, rent is $1,683 a month. Household income is $76,241. The cost of living index is 106. It lines up with what you'd expect.
198,162 residents · Tennessee
In plain English: Dive into Knoxville's numbers: cost index 104 (8 points below national average), rent $1,708/month, income $50,994, and a home price of $363,688. The city's cost profile isn't flat — Utilities is the cheapest category at 96, while Housing runs 110. With 198,162 residents, it balances mid-size city convenience with manageable costs.
#1 Ranked: Memphis — cost index 86, rent $1,234/mo, income $51,211
0 of 6 cities keep rent under 30% of $30K
0 of 6 cities keep rent under 30% of $30K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Memphis | $1,234 | 49% | 86 | Details |
| 2 | Clarksville | $1,376 | 55% | 96 | Details |
| 3 | Chattanooga | $1,499 | 60% | 98 | Details |
| 4 | Murfreesboro | $1,683 | 67% | 106 | Details |
| 5 | Knoxville | $1,708 | 68% | 104 | Details |
| 6 | Nashville | $1,772 | 71% | 108 | Details |
Read this before you sign a lease anywhere: 0 of 6 cities keep rent under 30% of $30K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $30K salary, 0 cities (0%) meet this threshold. That's a tough market (and that gap widens if you factor in state taxes).
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. Moving on. On a $30K salary, 0 cities (0%) meet this threshold. That's a tough market. 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.
The #1 spot goes to Memphis, and the breakdown explains why. Renters here pay $1,234/month — saving renters $7,932 per year compared to the national average. Meanwhile, Housing is the standout at index 66, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 89. A 29% rent-to-income ratio keeps most households inside the safe zone.
With that foundation in place: State context matters: Tennessee's 6 cities average a 100 cost index with $1,545/month median rent and $63,576 household income. No income tax, Nashville boom, and Memphis blues. In the comparison grid, two cities swap places when you switch from rent to total cost.
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. That tracks. The data is here; the decision is yours (not adjusted for inflation, but still telling).
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Memphis | 0% | 9.55% | 0.56% | $24,337 |
2Clarksville | 0% | 9.55% | 0.56% | $24,337 |
3Chattanooga | 0% | 9.55% | 0.56% | $24,337 |
4Murfreesboro | 0% | 9.55% | 0.56% | $24,337 |
5Knoxville | 0% | 9.55% | 0.56% | $24,337 |
6Nashville | 0% | 9.55% | 0.56% | $24,337 |
Memphis ranks #1 in Tennessee for this analysis with a cost index of 86 and median income of $51,211.
Yes. On a $30K salary in Memphis, rent would consume about 49% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
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 $30K in Memphis is approximately $24,337/year ($2,028/month). After median rent of $1,234/month, you'd have roughly $9,529/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.