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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Memphis leads at an index of 86 — for better or worse — with rent at just $1,234/month — 35% less than the $1,895 national median. Here are the numbers, sourced from federal data upd…
| Rank | City | Healthcare Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Memphis | 89 | 86 | $1,234 | Details |
| 2 | Clarksville | 99 | 96 | $1,376 | Details |
| 3 | Chattanooga | 101 | 98 | $1,499 | Details |
| 4 | Knoxville | 107 | 104 | $1,708 | Details |
| 5 | Murfreesboro | 109 | 106 | $1,683 | Details |
| 6 | Nashville | 111 | 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
Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Memphis leads at an index of 86 — for better or worse — with rent at just $1,234/month — 35% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
A closer look at Memphis: the cost index of 86 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.
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. An outlier in the best sense.
618,639 residents · Tennessee
A closer look at Memphis: the cost index of 86 breaks down to a Housing index of 66 (strongest category) and a Healthcare index of 89 (weakest). That alone makes it worth considering. 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.
180,716 residents · Tennessee
The #2 spot goes to Clarksville, and the breakdown explains why. That's more or less in line with the region. Renters here pay $1,376/month — saving renters $6,228 per year compared to the national average. Meanwhile, Utilities is the standout at index 89, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 99. A 25% rent-to-income ratio keeps most households inside the safe zone (that's pre-tax, of course).
187,030 residents · Tennessee
Dive into Chattanooga's numbers: cost index 98 (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.
198,162 residents · Tennessee
So, Knoxville. Cost index of 104 — worth pausing on — , rent at $1,708/month. It's lower than the national average. Median income is $50,994, which is below the national median. That's more or less in line with the region.
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 healthcare index at 89, 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.