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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 111 — we had to double-check this one — . Leading the pack: Memphis at index 72, where median rent of $1,234/month saves renters $7,932/year versus the national median (and that gap widens if…
| Rank | City | Transportation Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Memphis | 93 | 72 | $1,234 | Details |
| 2 | Clarksville | 95 | 80 | $1,376 | Details |
| 3 | Chattanooga | 97 | 88 | $1,499 | Details |
| 4 | Knoxville | 100 | 100 | $1,708 | Details |
| 5 | Murfreesboro | 100 | 98 | $1,683 | Details |
| 6 | Nashville | 101 | 103 | $1,772 | Details |
#1 Ranked: Memphis — cost index 72, rent $1,234/mo, income $51,211
Memphis is a clear outlier at index 72
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
Dollar for dollar, few states match Tennessee's value. 6 out of 6 cities undercut the national cost index of 111 — we had to double-check this one — . Leading the pack: Memphis at index 72, where median rent of $1,234/month saves renters $7,932/year versus the national median (and that gap widens if you factor in state taxes).
Fairly typical for a city this size.
Here's Memphis by the numbers — and there's a lot to like (and a little to watch). Cost index: 72. Rent: $1,234/month — which, honestly, is lower than you'd expect here — . 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. If you've ever felt priced out, the numbers here offer a different path.
The same data, viewed through a different lens: Here's the state-level backdrop: Tennessee averages a 90 cost index, $1,545/mo 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.
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 (not adjusted for inflation, but still telling).
618,639 residents · Tennessee
Memphis earns its position at #1 through a combination that's hard to replicate. The 72 cost index sits 39 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 72, while Healthcare trails at 94.
180,716 residents · Tennessee
A closer look at Clarksville: the cost index of 80 — we had to double-check this one — breaks down to a Housing index of 80 (strongest category) and a Healthcare index of 96 (weakest). Median rent is $1,376/month — 27% below the national median — while household income sits at $66,786, meaning locals spend about 25% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room (not adjusted for inflation, but still telling).
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. And broadly, 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.
198,162 residents · Tennessee
So, Knoxville. And for many people, cost index of 100 — a detail that tends to get overlooked — , rent at $1,708/month. It's lower than the national average. Median income is $50,994, which is below the national median. That tracks (your mileage may vary — literally).
165,430 residents · Tennessee
The #5 spot goes to Murfreesboro, and the breakdown explains why. Renters here pay $1,683/month — a detail that tends to get overlooked — — saving renters $2,544 per year compared to the national average. Meanwhile, Housing is the standout at index 98, keeping costs manageable. The weak spot? Healthcare at 100. A 26% rent-to-income ratio keeps most households inside the safe zone.
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 transportation index at 93, 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.