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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Put it this way: Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Murfreesboro leads at an index of 106 — not a number you see very often, by the way — with rent at just $1,683/month — 11% less than the $1,895 national median. Here…
#1 Ranked: Murfreesboro — cost index 106, rent $1,683/mo, income $76,241
6 of 6 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Value Ratio | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Murfreesboro | 719 | 106 | $1,683 | Details |
| 2 | Nashville | 696 | 108 | $1,772 | Details |
| 3 | Clarksville | 696 | 96 | $1,376 | Details |
| 4 | Chattanooga | 623 | 98 | $1,499 | Details |
| 5 | Memphis | 595 | 86 | $1,234 | Details |
| 6 | Knoxville | 490 | 104 | $1,708 | Details |
Put it this way: Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Murfreesboro leads at an index of 106 — not a number you see very often, by the way — with rent at just $1,683/month — 11% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Dive into Murfreesboro's numbers: cost index 106 (6 points below national average), rent $1,683/month, income $76,241, and a home price of $421,928. The city's cost profile isn't flat — Utilities is the cheapest category at 98, while Housing runs 116. With 165,430 residents, it balances mid-size city convenience with manageable costs.
The same data, viewed through a different lens: State context matters: Tennessee's 6 cities average a 100 cost index with $1,545/month median rent and $63,576 household income. And as a general rule, no income tax, Nashville boom, and Memphis blues. Cross-reference this ranking with the state salary page. The overlap is telling.
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.
165,430 residents · Tennessee
The #1 spot goes to Murfreesboro, and the breakdown explains why. Renters here pay $1,683/month — for better or worse — — 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 (and that gap widens if you factor in state taxes). Solidly above average.
687,788 residents · Tennessee
The #2 spot goes to Nashville, and the breakdown explains why. Renters here pay $1,772/month — saving renters $1,476 per year compared to the national average. Meanwhile, Utilities is the standout at index 99, keeping costs manageable. The weak spot? Housing at 120. A 28% rent-to-income ratio keeps most households inside the safe zone.
180,716 residents · Tennessee
Why Clarksville ranks #3: the numbers tell a clear story. At 96 on the cost index, residents save roughly 16% less than the typical American. Rent sits at $1,376/month — we had to double-check this one — while the median household pulls in $66,786/year. The Utilities category is particularly strong at 89, though Healthcare (99) lags behind. Home prices average $316,024 — $151,346 below the national median.
187,030 residents · Tennessee
Here's Chattanooga by the numbers — and there's a lot to like (and a little to watch). And in most cases, cost index: 98. Rent: $1,499/month. Income: $61,028/year. Home price: $314,306. Population: 187,030. The strongest category is Utilities at 90; the most expensive is Healthcare at 101. Translate that rent to annual numbers, and residents are saving renters $4,752 per year vs. the national median. That's a meaningful edge in practice.
618,639 residents · Tennessee
What does daily life actually cost in Memphis? Start with the 29% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 66) is where the real savings show up, while Healthcare (index 89) is the line item most likely to surprise newcomers. Income at $51,211 and homes at $142,870 round out a profile that ranks #5 for clear reasons.
Value ratio = median household income ÷ cost of living index. A higher ratio means each dollar of income buys more locally. This captures purchasing power better than looking at income or cost alone. 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.
Murfreesboro ranks #1 in Tennessee for this analysis with a cost index of 106 and median income of $76,241.
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.
Murfreesboro (ranked #1) has a cost index of 106 and rent of $1,683/mo, while Knoxville (ranked #6) has a cost index of 104 and rent of $1,708/mo — a 2-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 Murfreesboro is $1,683/month as of 2026, based on Zillow's Observed Rent Index. This is $212 below the national median of $1,895/month.
The median home price in Murfreesboro is $421,928, which is 5.5× the local median income. Most median-income households would stretch to buy at this ratio. 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.