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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 $50K salary, 1 cities (17%) 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…
#1 Ranked: Memphis — cost index 86, rent $1,234/mo, income $51,211
1 of 6 cities keep rent under 30% of $50K
1 of 6 cities keep rent under 30% of $50K 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% | $40,122 |
2Clarksville | 0% | 9.55% | 0.56% | $40,122 |
3Chattanooga | 0% | 9.55% | 0.56% | $40,122 |
4Murfreesboro | 0% | 9.55% | 0.56% | $40,122 |
5Knoxville | 0% | 9.55% | 0.56% | $40,122 |
6Nashville | 0% | 9.55% | 0.56% | $40,122 |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $50K salary, 1 cities (17%) 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.
Memphis earns its position at #1 through a combination that's hard to replicate. The 86 cost index sits 26 points below the national baseline, and the $51,211 median income means purchasing power here is amplified by the low cost base. Homes list at $142,870 — $324,500 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 66, while Healthcare trails at 89.
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 | 30% | 86 | Details |
| 2 | Clarksville | $1,376 | 33% | 96 | Details |
| 3 | Chattanooga | $1,499 | 36% | 98 | Details |
| 4 | Murfreesboro | $1,683 | 40% | 106 | Details |
| 5 | Knoxville | $1,708 | 41% | 104 | Details |
| 6 | Nashville | $1,772 | 43% | 108 | Details |
618,639 residents · Tennessee
Here's Memphis by the numbers — and there's a lot to like (and a little to watch). Cost index: 86. Rent: $1,234/month — for better or worse — . Income: $51,211/year. Home price: $142,870. Population: 618,639. The strongest category is Housing at 66; the most expensive is Healthcare at 89. Translate that rent to annual numbers, and residents are saving renters $7,932 per year vs. the national median. This is the type of edge you don't see advertised.
180,716 residents · Tennessee
Dive into Clarksville's numbers: cost index 96 (16 points below national average), rent $1,376/month, income $66,786, and a home price of $316,024. The city's cost profile isn't flat — Utilities is the cheapest category at 89, while Healthcare runs 99. With 180,716 residents, it balances mid-size city convenience with manageable costs.
187,030 residents · Tennessee
Dive into Chattanooga's numbers: cost index 98 — and that's before you even look at taxes — (14 points below national average), rent $1,499/month, income $61,028, and a home price of $314,306. The city's cost profile isn't flat — Utilities is the cheapest category at 90, while Healthcare runs 101. With 187,030 residents, it balances mid-size city convenience with manageable costs (though the trend is moving in the right direction).
165,430 residents · Tennessee
The #4 spot goes to Murfreesboro, and the breakdown explains why. Renters here pay $1,683/month — saving renters $2,544 per year compared to the national average. Meanwhile, Utilities is the standout at index 98, keeping costs manageable. The weak spot? Housing at 116. A 26% rent-to-income ratio keeps most households inside the safe zone.
198,162 residents · Tennessee
Why Knoxville ranks #5: the numbers tell a clear story. At 104 on the cost index, residents save roughly 8% less than the typical American. Rent sits at $1,708/month while the median household pulls in $50,994/year. The Utilities category is particularly strong at 96, though Housing (110) lags behind. Home prices average $363,688 — $103,682 below the national median (though the trend is moving in the right direction).
We calculate what percentage of a $50K 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 $50K salary in Memphis, rent would consume about 30% 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 $50K in Memphis is approximately $40,122/year ($3,344/month). After median rent of $1,234/month, you'd have roughly $25,314/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.