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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 6 of 6 cities in Tennessee beat the national cost-of-living benchmark of 111. Memphis stands out at 72 on the index, with rent of $1,234/month and household income of $51,211. Assembled from 2026 Census, Zillow, and BLS data (and that gap widens if you factor in state taxes).
| Rank | City | Housing Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Memphis | 72 | 72 | $1,234 | Details |
| 2 | Clarksville | 80 | 80 | $1,376 | Details |
| 3 | Chattanooga | 88 | 88 | $1,499 | Details |
| 4 | Murfreesboro | 98 | 98 | $1,683 | Details |
| 5 | Knoxville | 100 | 100 | $1,708 | Details |
| 6 | Nashville | 103 | 103 | $1,772 | Details |
#1 Ranked: Memphis — cost index 72, rent $1,234/mo, income $51,211
6 of 6 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
The numbers are clear: 6 of 6 cities in Tennessee beat the national cost-of-living benchmark of 111. Memphis stands out at 72 on the index, with rent of $1,234/month and household income of $51,211. Assembled from 2026 Census, Zillow, and BLS data (and that gap widens if you factor in state taxes).
What does daily life actually cost in Memphis? Start with the 29% rent-to-income ratio — tight but manageable for most households. And for many people, on the category level, Housing (index 72) is where the real savings show up, while Healthcare (index 94) is the line item most likely to surprise newcomers. Income at $51,211 and homes at $142,870 round out a profile that ranks #1 for clear reasons.
Against the national baseline, though: Here's the state-level backdrop: Tennessee averages a 90 cost index, $1,545/mo — for better or worse — rent, and $63,576 income across 6 cities. That's $350 less than the national rent average. No income tax, Nashville boom, and Memphis blues — and that context shapes every city in this ranking.
Bottom line: Memphis leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And as far as the data shows, 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
In plain English: Here's Memphis by the numbers — and there's a lot to like (and a little to watch). And with some exceptions, cost index: 72. 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 72; the most expensive is Healthcare at 94. Translate that rent to annual numbers, and residents are saving renters $7,932 per year vs. the national median. This is quietly one of the better values out there.
180,716 residents · Tennessee
Dive into Clarksville's numbers: cost index 80 (31 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 — Housing is the cheapest category at 80, while Healthcare runs 96. With 180,716 residents, it balances mid-size city convenience with manageable costs.
187,030 residents · Tennessee
What does daily life actually cost in Chattanooga? Start with the 29% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 88) is where the real savings show up, while Healthcare (index 98) is the line item most likely to surprise newcomers. Income at $61,028 and homes at $314,306 round out a profile that ranks #3 for clear reasons.
165,430 residents · Tennessee
In plain English: Why Murfreesboro ranks #4: the numbers tell a clear story. At 98 on the cost index, residents save roughly 13% less than the typical American. Rent sits at $1,683/month while the median household pulls in $76,241/year. The Housing category is particularly strong at 98, though Healthcare (100) lags behind. Take it or leave it — the data is what it is. Home prices average $421,928 — $45,442 below the national median (and that gap widens if you factor in state taxes).
198,162 residents · Tennessee
The #5 spot goes to Knoxville, and the breakdown explains why. Renters here pay $1,708/month — and yes, that's adjusted for the region — — saving renters $2,244 per year compared to the national average. Meanwhile, Healthcare is the standout at index 100, keeping costs manageable. The weak spot? Healthcare at 100. The 40% rent-to-income ratio is a pressure point — for median earners, housing takes more than recommended. The definition of value.
Memphis ranks #1 in Tennessee for this analysis with a cost index of 72 and median income of $51,211.
Memphis, TN has the lowest housing index at 72, 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 72 and rent of $1,234/mo, while Nashville (ranked #6) has a cost index of 103 and rent of $1,772/mo — a 31-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.