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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Tennessee's value. 6 out of 6 cities undercut the national cost index of 112. Leading the pack: Memphis at index 86, where median rent of $1,234/month saves renters $7,932/year versus the national median.
| Rank | City | Food & Groceries Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Memphis | 85 | 86 | $1,234 | Details |
| 2 | Clarksville | 95 | 96 | $1,376 | Details |
| 3 | Chattanooga | 96 | 98 | $1,499 | Details |
| 4 | Knoxville | 102 | 104 | $1,708 | Details |
| 5 | Murfreesboro | 104 | 106 | $1,683 | Details |
| 6 | Nashville | 106 | 108 | $1,772 | Details |
#1 Ranked: Memphis — cost index 86, rent $1,234/mo, income $51,211
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
Dollar for dollar, few states match Tennessee's value. 6 out of 6 cities undercut the national cost index of 112. Leading the pack: Memphis at index 86, where median rent of $1,234/month saves renters $7,932/year versus the national median.
In plain English: a closer look at Memphis: the cost index of 86 — for better or worse — breaks down to a Housing index of 66 (strongest category) and a Healthcare index of 89 (weakest). Median rent is $1,234/month — 35% below the national median — while household income sits at $51,211, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
Zooming out, Tennessee — no income tax, Nashville boom, and Memphis blues. The 6 cities we track here average a cost index of 100 and median income of $63,576. It's a clear buyer's market compared to national norms. The typical rent runs $1,545/month, which is $350 less than the national median.
Bottom line: Memphis leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
618,639 residents · Tennessee
At $1,234/month for rent and a cost index of 86, Memphis is pretty much what you'd expect from a larger city in this part of the country. Income is $51,211. It's fine. Not great, not bad.
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
Look, Why Chattanooga ranks #3: the numbers tell a clear story. At 98 on the cost index, residents save roughly 14% less than the typical American. Rent sits at $1,499/month while the median household pulls in $61,028/year. The Utilities category is particularly strong at 90, though Healthcare (101) lags behind. Home prices average $314,306 — $153,064 below the national median. Quietly competitive.
198,162 residents · Tennessee
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.
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 #5 for clear reasons.
Memphis ranks #1 in Tennessee for this analysis with a cost index of 86 and median income of $51,211.
Memphis, TN has the lowest food & groceries index at 85, compared to the national average of 100.
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.
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.