Loading
Assembling your view…
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 $150K 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 72, rent $1,234/mo, income $51,211
6 of 6 cities keep rent under 30% of $150K
6 of 6 cities keep rent under 30% of $150K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Memphis | 0% | 9.55% | 0.56% | $109,483 |
2Clarksville | 0% | 9.55% | 0.56% | $109,483 |
3Chattanooga | 0% | 9.55% | 0.56% | $109,483 |
4Murfreesboro | 0% | 9.55% | 0.56% | $109,483 |
5Knoxville | 0% | 9.55% | 0.56% | $109,483 |
6Nashville | 0% | 9.55% | 0.56% | $109,483 |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K 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.
6 of 6 cities keep rent under 30% of $150K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 6 cities (100%) meet this threshold. You've got plenty of choices (a figure that keeps climbing, by the way).
A closer look at Memphis: the cost index of 72 breaks down to a Housing index of 72 (strongest category) and a Healthcare index of 94 (weakest). Median rent is $1,234/month — 35% below the national median — while household income sits at $51,211, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room (that's pre-tax, of course).
On a $150K salary, the key number is $3,750/month — that's 30% of gross, the standard affordability line. Memphis ($1,234/mo, 10%), Clarksville ($1,376/mo, 11%), Chattanooga ($1,499/mo, 12%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $109,483 to $109,483/year across these top picks.
For all that, there's a counter-signal worth noting: Across Tennessee, the average cost of living index is 90 — 21 points below the national median. Known for no income tax, Nashville boom, and Memphis blues, the state offers 6 tracked cities with median rents averaging $1,545/month. That's $350 less than the national average of $1,895. For anyone running the numbers, this is where it clicks.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Memphis | $1,234 | 10% | 72 | Details |
| 2 | Clarksville | $1,376 | 11% | 80 | Details |
| 3 | Chattanooga | $1,499 | 12% | 88 | Details |
| 4 | Murfreesboro | $1,683 | 13% | 98 | Details |
| 5 | Knoxville | $1,708 | 14% | 100 | Details |
| 6 | Nashville | $1,772 | 14% | 103 | Details |
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $150K salary, 6 cities (100%) meet this threshold. You've got plenty of choices.
#1-ranked Memphis has a cost index 16 points lower than the top-5 average of 88. That's not a marginal lead — it's a category of its own.
618,639 residents · Tennessee
Why Memphis ranks #1: the numbers tell a clear story. At 72 on the cost index, residents save roughly 39% 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 72, though Healthcare (94) lags behind. Home prices average $142,870 — $324,500 below the national median.
180,716 residents · Tennessee
The #2 spot goes to Clarksville, and the breakdown explains why. Renters here pay $1,376/month — a detail that tends to get overlooked — — saving renters $6,228 per year compared to the national average. Meanwhile, Housing is the standout at index 80, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 96. A 25% rent-to-income ratio keeps most households inside the safe zone.
187,030 residents · Tennessee
Why Chattanooga ranks #3: the numbers tell a clear story. At 88 on the cost index, residents save roughly 23% less than the typical American. Rent sits at $1,499/month while the median household pulls in $61,028/year. The Housing category is particularly strong at 88, though Healthcare (98) lags behind. Home prices average $314,306 — $153,064 below the national median.
165,430 residents · Tennessee
Dive into Murfreesboro's numbers: cost index 98 — which, honestly, is lower than you'd expect here — (13 points below national average), rent $1,683/month, income $76,241, and a home price of $421,928. The city's cost profile isn't flat — Housing is the cheapest category at 98, while Healthcare runs 100. With 165,430 residents, it balances mid-size city convenience with manageable costs.
198,162 residents · Tennessee
Here's Knoxville by the numbers — and there's a lot to like (and a little to watch). Cost index: 100. Rent: $1,708/month. Income: $50,994/year. Home price: $363,688. Population: 198,162. The strongest category is Healthcare at 100; the most expensive is Healthcare at 100. Translate that rent to annual numbers, and residents are saving renters $2,244 per year vs. the national median. The data here speaks for itself.
Memphis ranks #1 in Tennessee for this analysis with a cost index of 72 and median income of $51,211.
Yes. On a $150K salary in Memphis, rent would consume about 10% 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 72 and rent of $1,234/mo, while Nashville (ranked #6) has a cost index of 103 and rent of $1,772/mo — a 31-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 $150K in Memphis is approximately $109,483/year ($9,124/month). After median rent of $1,234/month, you'd have roughly $94,675/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.