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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 $75K 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. Memph…
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $75K 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.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $75K 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.
On a $75K salary, the key number is $1,875/month — that's 30% of gross, the standard affordability line. And as far as the data shows, memphis ($1,234/mo, 20%), Clarksville ($1,376/mo, 22%), Chattanooga ($1,499/mo, 24%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $57,710 to $57,710/year across these top picks.
Real talk: 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).
If you only look at rent, it's perfect. Zoom out and it's complicated. In Memphis, the healthcare index sits at 94 — not a dealbreaker, but worth knowing about.
6 of 6 cities keep rent under 30% of $75K. The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $75K salary, 6 cities (100%) meet this threshold. You've got plenty of choices (your mileage may vary — literally). A real contender.
Bottom line: Memphis leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And on balance, 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.
#1 Ranked: Memphis — cost index 72, rent $1,234/mo, income $51,211
6 of 6 cities keep rent under 30% of $75K
6 of 6 cities keep rent under 30% of $75K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Memphis | $1,234 | 20% | 72 | Details |
| 2 | Clarksville | $1,376 | 22% | 80 | Details |
| 3 | Chattanooga | $1,499 | 24% | 88 | Details |
| 4 | Murfreesboro | $1,683 | 27% | 98 | Details |
| 5 | Knoxville | $1,708 | 27% | 100 | Details |
| 6 | Nashville | $1,772 | 28% | 103 | Details |
618,639 residents · Tennessee
Here's Memphis by the numbers — and there's a lot to like (and a little to watch). And in practical terms, cost index: 72. Rent: $1,234/month. Income: $51,211/year. Home price: $142,870. Population: 618,639. The strongest category is Housing at 72; the most expensive is Healthcare at 94. Translate that rent to annual numbers, and residents are saving renters $7,932 per year vs. the national median. For dual-income households, this multiplies into serious savings.
180,716 residents · Tennessee
What does daily life actually cost in Clarksville? Start with the 25% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 80) is where the real savings show up, while Healthcare (index 96) is the line item most likely to surprise newcomers. Income at $66,786 — we had to double-check this one — and homes at $316,024 round out a profile that ranks #2 for clear reasons.
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 — we had to double-check this one — 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
At $1,683/month for rent and a cost index of 98, Murfreesboro is pretty much what you'd expect from a mid-size city in this part of the country. Income is $76,241. That alone makes it worth considering.
198,162 residents · Tennessee
A closer look at Knoxville: the cost index of 100 breaks down to a Healthcare index of 100 (strongest category) and a Healthcare index of 100 (weakest). And as a general rule, 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% | $57,710 |
2Clarksville | 0% | 9.55% | 0.56% | $57,710 |
3Chattanooga | 0% | 9.55% | 0.56% | $57,710 |
4Murfreesboro | 0% | 9.55% | 0.56% | $57,710 |
5Knoxville | 0% | 9.55% | 0.56% | $57,710 |
6Nashville | 0% | 9.55% | 0.56% | $57,710 |
We model what a $75K salary looks like after taxes in each city: federal income tax (marginal brackets), FICA (7.65%), and state income tax. Then we compare take-home against local rent and costs to determine where the salary stretches furthest. 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 72 and median income of $51,211.
Yes. On a $75K salary in Memphis, rent would consume about 20% 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 $75K in Memphis is approximately $57,710/year ($4,809/month). After median rent of $1,234/month, you'd have roughly $42,902/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.