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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.
618,639 residents · Tennessee
Why Memphis ranks #1: the numbers tell a clear story. At 86 on the cost index, residents save roughly 26% less than the typical American. Rent sits at $1,234/month while the median household pulls in $51,211/year. The Housing category is particularly strong at 66, though Healthcare (89) lags behind. Home prices average $142,870 — $324,500 below the national median.
180,716 residents · Tennessee
Why Clarksville ranks #2: 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.
187,030 residents · Tennessee
Here's Chattanooga by the numbers — and there's a lot to like (and a little to watch). Cost index: 98. Rent: $1,499/month. Income: $61,028/year. Home price: $314,306. Population: 187,030. The strongest category is Utilities at 90; the most expensive is Healthcare at 101. Translate that rent to annual numbers, and residents are saving renters $4,752 per year vs. the national median. For dual-income households, this multiplies into serious savings.
165,430 residents · Tennessee
A closer look at Murfreesboro: the cost index of 106 breaks down to a Utilities index of 98 (strongest category) and a Housing index of 116 (weakest). Median rent is $1,683/month — 11% below the national median — while household income sits at $76,241, meaning locals spend about 26% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
198,162 residents · Tennessee
Frankly, 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.
#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
| Rank | City | Median Rent | Cost Index | |
|---|---|---|---|---|
| 1 | Memphis | $1,234 | 86 | Details |
| 2 | Clarksville | $1,376 | 96 | Details |
| 3 | Chattanooga | $1,499 | 98 | Details |
| 4 | Murfreesboro | $1,683 | 106 | Details |
| 5 | Knoxville | $1,708 | 104 | Details |
| 6 | Nashville | $1,772 | 108 | Details |
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.
Why Memphis ranks #1: the numbers tell a clear story. At 86 on the cost index, residents save roughly 26% less than the typical American. Rent sits at $1,234/month while the median household pulls in $51,211/year. The Housing category is particularly strong at 66, though Healthcare (89) lags behind. Home prices average $142,870 — $324,500 below 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.
Cities are ranked by median 1-bedroom rent from Zillow's Observed Rent Index (ZORI). ZORI reflects the median rent across all listed units, not just new leases, providing a more stable and representative figure. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Memphis ranks #1 in Tennessee for this analysis with a cost index of 86 and median income of $51,211.
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.