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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. Nashville leads at an index of 103 with rent at just $1,772/month — 6% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
687,788 residents · Tennessee
At $1,772/month for rent and a cost index of 103, Nashville is pretty much what you'd expect from a larger city in this part of the country. Income is $75,197. It lines up with what you'd expect.
618,639 residents · Tennessee
Put it this way: Dive into Memphis's numbers: cost index 72 (39 points below national average), rent $1,234/month, income $51,211, and a home price of $142,870. The city's cost profile isn't flat — Housing is the cheapest category at 72, while Healthcare runs 94. As a major city with 618,639 residents, amenities and job markets are robust (which, to be fair, is a metric that favors smaller cities).
198,162 residents · Tennessee
Straight up: Knoxville earns its position at #3 through a combination that's hard to replicate. The 100 cost index sits 11 points below the national baseline, and the $50,994 median income means purchasing power here is amplified by the low cost base. Homes list at $363,688 — $103,682 below the national median — a genuine ownership opportunity. On the cost side, Healthcare leads the way at 100, while Healthcare trails at 100 (which, to be fair, is a metric that favors smaller cities).
187,030 residents · Tennessee
Dive into Chattanooga's numbers: cost index 88 (23 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 — Housing is the cheapest category at 88, while Healthcare runs 98. With 187,030 residents, it balances mid-size city convenience with manageable costs.
180,716 residents · Tennessee
A closer look at Clarksville: the cost index of 80 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.
#1 Ranked: Nashville — cost index 103, rent $1,772/mo, income $75,197
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
| Rank | City | Population | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Nashville | 687,788 | 103 | $1,772 | Details |
| 2 | Memphis | 618,639 | 72 | $1,234 | Details |
| 3 | Knoxville | 198,162 | 100 | $1,708 | Details |
| 4 | Chattanooga | 187,030 | 88 | $1,499 | Details |
| 5 | Clarksville | 180,716 | 80 | $1,376 | Details |
| 6 | Murfreesboro | 165,430 | 98 | $1,683 | Details |
Tennessee is a genuine bargain: 6 of the 6 cities in this ranking come in below the national cost-of-living average. Nashville leads at an index of 103 with rent at just $1,772/month — 6% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Here's Nashville by the numbers — and there's a lot to like (and a little to watch). Cost index: 103. Rent: $1,772/month. Income: $75,197/year. Home price: $429,861. Population: 687,788. The strongest category is Healthcare at 101; the most expensive is Housing at 103. Translate that rent to annual numbers, and residents are saving renters $1,476 per year vs. the national median. The data here speaks for itself.
The ranking uses a composite of 2026 data from Census Bureau population/income surveys, Zillow rent and home price indices, BLS salary benchmarks, and Tax Foundation tax rates. Nashville (index 103 — for better or worse — , rent $1,772); Memphis (index 72, rent $1,234); Knoxville (index 100, rent $1,708). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
Now zoom in on the cost categories. And generally speaking, state context matters: Tennessee's 6 cities average a 90 cost index with $1,545/month median rent and $63,576 household income. No income tax, Nashville boom, and Memphis blues. Below, we isolate the healthcare number — it's the wild card.
Bottom line: Nashville 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 (and that gap widens if you factor in state taxes).
Cities are ranked by total population from the latest Census estimates. Growing populations typically signal economic opportunity — but also rising costs. We pair population data with affordability metrics for context. 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.
Nashville ranks #1 in Tennessee for this analysis with a cost index of 103 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 103 and rent of $1,772/mo, while Murfreesboro (ranked #6) has a cost index of 98 and rent of $1,683/mo — a 5-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.