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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Veterans' benefits — pension, VA disability, GI Bill — stretch farther in some cities. It's fine. Not great, not bad. We ranked 6 cities in Tennessee on cost, state tax burden, and healthcare. Memphis leads with index 72 and no state income tax (not adjusted for inflation, but still telling).
Veterans' benefits — pension, VA disability, GI Bill — stretch farther in some cities. It's fine. Not great, not bad. We ranked 6 cities in Tennessee on cost, state tax burden, and healthcare. Memphis leads with index 72 and no state income tax (not adjusted for inflation, but still telling).
Memphis is a clear outlier at index 72. And from what we can tell, #1-ranked Memphis has a cost index 17 points lower than the top-5 average of 89. That's not a marginal lead — it's a category of its own. That's a strong position by any measure.
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.
Veterans have unique financial considerations: pension, VA disability, GI Bill benefits all interact with local costs and taxes. Our model weights cost of living (20pts), state tax burden (20pts), and healthcare costs (15pts) for supplemental care beyond VA. Memphis scores highest with a 72 cost index and no state income tax.
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. An outlier in the best sense.
#1 Ranked: Memphis — cost index 72, rent $1,234/mo, income $51,211
Memphis is a clear outlier at index 72
Veteran scoring: cost index 72, no state income tax, healthcare index 94 — preserving earned benefits
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
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 (that's pre-tax, of course).
187,030 residents · Tennessee
Why Chattanooga ranks #2: 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 (not adjusted for inflation, but still telling).
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 — a detail that tends to get overlooked — and homes at $316,024 round out a profile that ranks #3 for clear reasons.
687,788 residents · Tennessee
The #4 spot goes to Nashville, and the breakdown explains why. And most of the time, about what you'd guess. Renters here pay $1,772/month — for better or worse — — saving renters $1,476 per year compared to the national average. Meanwhile, Healthcare is the standout at index 101, keeping costs manageable. The weak spot? Housing at 103. A 28% rent-to-income ratio keeps most households inside the safe zone (not adjusted for inflation, but still telling).
198,162 residents · Tennessee
In plain English: Dive into Knoxville's numbers: cost index 100 — make of that what you will — (11 points below national average), rent $1,708/month, income $50,994, and a home price of $363,688. The city's cost profile isn't flat — Healthcare is the cheapest category at 100, while Healthcare runs 100. With 198,162 residents, it balances mid-size city convenience with manageable costs. A real contender.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Memphis | 72 | $1,234 | Details |
| 2 | Chattanooga | 88 | $1,499 | Details |
| 3 | Clarksville | 80 | $1,376 | Details |
| 4 | Nashville | 103 | $1,772 | Details |
| 5 | Knoxville | 100 | $1,708 | Details |
| 6 | Murfreesboro | 98 | $1,683 | Details |
Memphis ranks #1 in Tennessee for this analysis with a cost index of 72 and median income of $51,211.
Memphis scores highest for military veterans due to its below-average cost of living, median rent of $1,234/mo, and competitive median income of $51,211.
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 Murfreesboro (ranked #6) has a cost index of 98 and rent of $1,683/mo — a 26-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.
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.