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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: Nashville at index 108, where median rent of $1,772/month saves renters $1,476/year versus the national median.
#1 Ranked: Nashville — cost index 108, rent $1,772/mo, income $75,197
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: Nashville at index 108, where median rent of $1,772/month saves renters $1,476/year versus the national median.
Tax burden isn't just income tax. We combine three layers: state income tax (0% in Nashville), combined state+local sales tax (9.55%), and effective property tax (0.56%). Tennessee has no state income tax — a significant advantage that keeps more of every paycheck. On a $75,000 salary, the estimated take-home in #1 Nashville is $57,710/year.
What does daily life actually cost in Nashville? Start with the 28% rent-to-income ratio — tight but manageable for most households. On the category level, Utilities (index 99) is where the real savings show up, while Housing (index 120) is the line item most likely to surprise newcomers. Income at $75,197 and homes at $429,861 round out a profile that ranks #1 for clear reasons.
Rankings quantify the landscape. But the decision to move is personal. Use the spotlights above to zero in on 2-3 finalists, then run your actual salary through the calculator. The question isn't just "where is it cheapest?" — it's "where does my specific income buy the life I want?" Start here. Dig deeper on the linked city pages.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Nashville | 108 | $1,772 | Details |
| 2 | Memphis | 86 | $1,234 | Details |
| 3 | Knoxville | 104 | $1,708 | Details |
| 4 | Chattanooga | 98 | $1,499 | Details |
| 5 | Clarksville | 96 | $1,376 | Details |
| 6 | Murfreesboro | 106 | $1,683 | Details |
687,788 residents · Tennessee
Why Nashville ranks #1: the numbers tell a clear story. And depending on your situation, at 108 on the cost index, residents save roughly 4% less than the typical American. Rent sits at $1,772/month — which, honestly, is lower than you'd expect here — while the median household pulls in $75,197/year. The Utilities category is particularly strong at 99, though Housing (120) lags behind. Home prices average $429,861 — $37,509 below the national median.
618,639 residents · Tennessee
Memphis earns its position at #2 through a combination that's hard to replicate. The 86 cost index sits 26 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 66, while Healthcare trails at 89.
198,162 residents · Tennessee
What does daily life actually cost in Knoxville? Start with the 40% rent-to-income ratio — stretched, especially for single earners. On the category level, Utilities (index 96) is where the real savings show up, while Housing (index 110) is the line item most likely to surprise newcomers. Income at $50,994 and homes at $363,688 round out a profile that ranks #3 for clear reasons.
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, Utilities (index 90) is where the real savings show up, while Healthcare (index 101) is the line item most likely to surprise newcomers. Income at $61,028 and homes at $314,306 round out a profile that ranks #4 for clear reasons.
180,716 residents · Tennessee
Why Clarksville ranks #5: 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 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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Nashville | 0% | 9.55% | 0.56% | $57,848 |
2Memphis | 0% | 9.55% | 0.56% | $57,848 |
3Knoxville | 0% | 9.55% | 0.56% | $57,848 |
4Chattanooga | 0% | 9.55% | 0.56% | $57,848 |
5Clarksville | 0% | 9.55% | 0.56% | $57,848 |
6Murfreesboro | 0% | 9.55% | 0.56% | $57,848 |
Nashville ranks #1 in Tennessee for this analysis with a cost index of 108 and median income of $75,197.
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.
Nashville (ranked #1) has a cost index of 108 and rent of $1,772/mo, while Murfreesboro (ranked #6) has a cost index of 106 and rent of $1,683/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 Nashville is $1,772/month as of 2026, based on Zillow's Observed Rent Index. This is $123 below the national median of $1,895/month.
The median home price in Nashville is $429,861, which is 5.7× 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.