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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Real talk: Dollar for dollar, few states match Tennessee's value. 6 out of 6 cities undercut the national cost index of 112. Leading the pack: Murfreesboro at index 106, where median rent of $1,683/month saves renters $2,544/year versus the national median.
165,430 residents · Tennessee
Why Murfreesboro ranks #1: the numbers tell a clear story. At 106 on the cost index, residents save roughly 6% less than the typical American. Rent sits at $1,683/month while the median household pulls in $76,241/year. The Utilities category is particularly strong at 98, though Housing (116) lags behind. Home prices average $421,928 — $45,442 below the national median.
687,788 residents · Tennessee
A closer look at Nashville: the cost index of 108 breaks down to a Utilities index of 99 (strongest category) and a Housing index of 120 (weakest). And in practical terms, median rent is $1,772/month — 6% below the national median — while household income sits at $75,197, meaning locals spend about 28% of income on rent. Not the most exciting stat, but it matters. That's within the recommended 30% threshold, though it doesn't leave much room.
180,716 residents · Tennessee
Why Clarksville ranks #3: 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 — which, honestly, is lower than you'd expect here — 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
In plain English: Chattanooga earns its position at #4 through a combination that's hard to replicate. The 98 cost index sits 14 points below the national baseline, and the $61,028 median income means purchasing power here is amplified by the low cost base. Homes list at $314,306 — $153,064 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 90, while Healthcare trails at 101.
618,639 residents · Tennessee
Here's Memphis by the numbers — and there's a lot to like (and a little to watch). Cost index: 86. Rent: $1,234/month — we had to double-check this one — . Income: $51,211/year. Home price: $142,870. Population: 618,639. The strongest category is Housing at 66; the most expensive is Healthcare at 89. Translate that rent to annual numbers, and residents are saving renters $7,932 per year vs. the national median. That's the sort of advantage that turns renters into homeowners (and that gap widens if you factor in state taxes).
#1 Ranked: Murfreesboro — cost index 106, rent $1,683/mo, income $76,241
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 Income | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Murfreesboro | $76,241 | 106 | $1,683 | Details |
| 2 | Nashville | $75,197 | 108 | $1,772 | Details |
| 3 | Clarksville | $66,786 | 96 | $1,376 | Details |
| 4 | Chattanooga | $61,028 | 98 | $1,499 | Details |
| 5 | Memphis | $51,211 | 86 | $1,234 | Details |
| 6 | Knoxville | $50,994 | 104 | $1,708 | Details |
Real talk: Dollar for dollar, few states match Tennessee's value. 6 out of 6 cities undercut the national cost index of 112. Leading the pack: Murfreesboro at index 106, where median rent of $1,683/month saves renters $2,544/year versus the national median.
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.
What you won't find on most comparison sites: Tennessee — no income tax, Nashville boom, and Memphis blues. The 6 cities we track here average a cost index of 100 and median income of $63,576. It's a clear buyer's market compared to national norms. The typical rent runs $1,545/month, which is $350 less than the national median.
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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Murfreesboro | 0% | 9.55% | 0.56% | $58,583 |
2Nashville | 0% | 9.55% | 0.56% | $58,583 |
3Clarksville | 0% | 9.55% | 0.56% | $58,583 |
4Chattanooga | 0% | 9.55% | 0.56% | $58,583 |
5Memphis | 0% | 9.55% | 0.56% | $58,583 |
6Knoxville | 0% | 9.55% | 0.56% | $58,583 |
Cities are ranked by median household income from Census ACS data. We also show cost-adjusted purchasing power (income ÷ cost index) to reveal which high-income cities actually deliver the most real-world spending power. 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.
Murfreesboro ranks #1 in Tennessee for this analysis with a cost index of 106 and median income of $76,241.
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.
Murfreesboro (ranked #1) has a cost index of 106 and rent of $1,683/mo, while Knoxville (ranked #6) has a cost index of 104 and rent of $1,708/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 Murfreesboro is $1,683/month as of 2026, based on Zillow's Observed Rent Index. This is $212 below the national median of $1,895/month.
The median home price in Murfreesboro is $421,928, which is 5.5× 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.