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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $100K salary, 6 cities (100%) meet this threshold. You've got plenty of choices. We ran the numbers on 6 cities in Tennessee using 2026 census, rent, and salary data. Memp…
#1 Ranked: Memphis — cost index 86, rent $1,234/mo, income $51,211
6 of 6 cities keep rent under 30% of $100K
6 of 6 cities keep rent under 30% of $100K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $100K salary, 6 cities (100%) meet this threshold. You've got plenty of choices. We ran the numbers on 6 cities in Tennessee using 2026 census, rent, and salary data. Memphis comes out on top — here's the full ranking and analysis.
Let's cut to what actually matters here. 6 of 6 cities keep rent under 30% of $100K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $100K salary, 6 cities (100%) meet this threshold. You've got plenty of choices.
Memphis earns its position at #1 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 (not adjusted for inflation, but still telling).
On a $100K salary, the key number is $2,500/month — and that's before you even look at taxes — — that's 30% of gross, the standard affordability line. Memphis ($1,234/mo, 15%), Clarksville ($1,376/mo, 17%), Chattanooga ($1,499/mo, 18%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $75,297 to $75,297/year across these top picks.
An outlier in the best sense.
What makes this tricky: Here's the state-level backdrop: Tennessee averages a 100 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.
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.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Memphis | $1,234 | 15% | 86 | Details |
| 2 | Clarksville | $1,376 | 17% | 96 | Details |
| 3 | Chattanooga | $1,499 | 18% | 98 | Details |
| 4 | Murfreesboro | $1,683 | 20% | 106 | Details |
| 5 | Knoxville | $1,708 | 20% | 104 | Details |
| 6 | Nashville | $1,772 | 21% | 108 | Details |
618,639 residents · Tennessee
Dive into Memphis's numbers: cost index 86 (26 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 66, while Healthcare runs 89. Moving on. As a major city with 618,639 residents, amenities and job markets are robust (not adjusted for inflation, but still telling).
180,716 residents · Tennessee
Dive into Clarksville's numbers: cost index 96 (16 points below national average), rent $1,376/month, income $66,786, and a home price of $316,024. The city's cost profile isn't flat — Utilities is the cheapest category at 89, while Healthcare runs 99. With 180,716 residents, it balances mid-size city convenience with manageable costs.
187,030 residents · Tennessee
The #3 spot goes to Chattanooga, and the breakdown explains why. Renters here pay $1,499/month — worth pausing on — — saving renters $4,752 per year compared to the national average. Meanwhile, Utilities is the standout at index 90, keeping costs manageable. The weak spot? Healthcare at 101. A 29% rent-to-income ratio keeps most households inside the safe zone.
165,430 residents · Tennessee
Dive into Murfreesboro's numbers: cost index 106 (6 points below national average), rent $1,683/month, income $76,241, and a home price of $421,928. And generally speaking, the city's cost profile isn't flat — Utilities is the cheapest category at 98, while Housing runs 116. With 165,430 residents, it balances mid-size city convenience with manageable costs. The math checks out.
198,162 residents · Tennessee
A closer look at Knoxville: the cost index of 104 breaks down to a Utilities index of 96 (strongest category) and a Housing index of 110 (weakest). Median rent is $1,708/month — 10% below the national median — while household income sits at $50,994, meaning locals spend about 40% of income on rent. That exceeds the recommended 30% threshold — affordability here depends on earning above the median.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Memphis | 0% | 9.55% | 0.56% | $75,297 |
2Clarksville | 0% | 9.55% | 0.56% | $75,297 |
3Chattanooga | 0% | 9.55% | 0.56% | $75,297 |
4Murfreesboro | 0% | 9.55% | 0.56% | $75,297 |
5Knoxville | 0% | 9.55% | 0.56% | $75,297 |
6Nashville | 0% | 9.55% | 0.56% | $75,297 |
Memphis ranks #1 in Tennessee for this analysis with a cost index of 86 and median income of $51,211.
Yes. On a $100K salary in Memphis, rent would consume about 15% of your gross monthly income. Financial experts recommend keeping rent under 30%. You're well within that guideline.
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.
After federal taxes, FICA (7.65%), and 0% state income tax, estimated take-home on $100K in Memphis is approximately $75,297/year ($6,275/month). After median rent of $1,234/month, you'd have roughly $60,489/year for all other expenses.
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.