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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 — we had to double-check this one — 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. Fairly typical for a city this size (and that gap widens if you factor in state taxes).
618,639 residents · Tennessee
Real talk: 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.
198,162 residents · Tennessee
Why Knoxville ranks #3: the numbers tell a clear story. At 100 on the cost index, residents save roughly 11% less than the typical American. Rent sits at $1,708/month while the median household pulls in $50,994/year. The Healthcare category is particularly strong at 100, though Healthcare (100) lags behind. Home prices average $363,688 — $103,682 below the national median.
187,030 residents · Tennessee
Here's Chattanooga by the numbers — and there's a lot to like (and a little to watch). Cost index: 88. Rent: $1,499/month. Income: $61,028/year. Home price: $314,306. Population: 187,030. The strongest category is Housing at 88; the most expensive is Healthcare at 98. Translate that rent to annual numbers, and residents are saving renters $4,752 per year vs. the national median. That ratio is hard to beat anywhere else.
180,716 residents · Tennessee
Clarksville earns its position at #5 through a combination that's hard to replicate. The 80 cost index sits 31 points below the national baseline, and the $66,786 median income means purchasing power here is amplified by the low cost base. Homes list at $316,024 — $151,346 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 80, while Healthcare trails at 96.
#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 | Combined Rate | Income Tax | Sales Tax | Cost Index | |
|---|---|---|---|---|---|---|
| 1 | Nashville | 10.1% | 0% | 9.55% | 103 | Details |
| 2 | Memphis | 10.1% | 0% | 9.55% | 72 | Details |
| 3 | Knoxville | 10.1% | 0% | 9.55% | 100 | Details |
| 4 | Chattanooga | 10.1% | 0% | 9.55% | 88 | Details |
| 5 | Clarksville | 10.1% | 0% | 9.55% | 80 | Details |
| 6 | Murfreesboro | 10.1% | 0% | 9.55% | 98 | 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.
Tax burden isn't just income tax. We combine three layers: state income tax (0% in Nashville), combined state+local sales tax (9.55%), and effective property tax (0.56%). Tennessee has no state income tax — a significant advantage that keeps more of every paycheck. On a $75,000 salary, the estimated take-home in #1 Nashville is $57,710/year (and that gap widens if you factor in state taxes).
Dive into Nashville's numbers: cost index 103 (8 points below national average), rent $1,772/month, income $75,197, and a home price of $429,861. And most of the time, the city's cost profile isn't flat — Healthcare is the cheapest category at 101, while Housing runs 103. As a major city with 687,788 residents, amenities and job markets are robust.
The headline stat is real. So is the fine print. In Nashville, the housing index sits at 103 — not a dealbreaker, but worth knowing about.
In plain English: 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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Nashville | 0% | 9.55% | 0.56% | $57,848 |
2Memphis | 0% | 9.55% | 0.56% | $57,848 |
3Knoxville | 0% | 9.55% | 0.56% | $57,848 |
4Chattanooga | 0% | 9.55% | 0.56% | $57,848 |
5Clarksville | 0% | 9.55% | 0.56% | $57,848 |
6Murfreesboro | 0% | 9.55% | 0.56% | $57,848 |
We combine state income tax rate, combined sales tax (state + local), and effective property tax rate into a total tax burden score. Cities are ranked by this combined metric — lower is better for your wallet. 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.