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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 108 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.
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 108 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.
So, Nashville. Cost index of 108, rent at $1,772/month. It's lower than the national average. Median income is $75,197, which is below the national median. That alone makes it worth considering. That's about what we'd expect given the state context.
Bottom line: Nashville 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.
#1 Ranked: Nashville — cost index 108, rent $1,772/mo, income $75,197
6 of 6 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Nashville | 108 | $1,772 | Details |
| 2 | Murfreesboro | 106 | $1,683 | Details |
| 3 | Knoxville | 104 | $1,708 | Details |
| 4 | Chattanooga | 98 | $1,499 | Details |
| 5 | Clarksville | 96 | $1,376 | Details |
| 6 | Memphis | 86 | $1,234 | Details |
687,788 residents · Tennessee
Here's Nashville by the numbers — and there's a lot to like (and a little to watch). Cost index: 108. Rent: $1,772/month. Income: $75,197/year. Home price: $429,861. Population: 687,788. The strongest category is Utilities at 99; the most expensive is Housing at 120. Translate that rent to annual numbers, and residents are saving renters $1,476 per year vs. the national median. That adds up much faster than people realize.
165,430 residents · Tennessee
Murfreesboro is one of the cheaper options here. Rent is $1,683/month, which is lower than most cities in this ranking. The cost index is 106. Income sits at $76,241. That tracks. Surprising? Maybe. But the data's clear.
198,162 residents · Tennessee
Dive into Knoxville's numbers: cost index 104 (8 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 — Utilities is the cheapest category at 96, while Housing runs 110. With 198,162 residents, it balances mid-size city convenience with manageable costs.
187,030 residents · Tennessee
A closer look at Chattanooga: the cost index of 98 breaks down to a Utilities index of 90 (strongest category) and a Healthcare index of 101 (weakest). Median rent is $1,499/month — 21% below the national median — while household income sits at $61,028, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
180,716 residents · Tennessee
Here's Clarksville by the numbers — and there's a lot to like (and a little to watch). Cost index: 96. Rent: $1,376/month. Income: $66,786/year. Home price: $316,024. Population: 180,716. The strongest category is Utilities at 89; the most expensive is Healthcare at 99. Translate that rent to annual numbers, and residents are saving renters $6,228 per year vs. the national median. In a market where everything is going up, this stands still — in a good way.
Cities are ranked by overall cost of living index in descending order. High-cost cities are typically driven by housing prices — a city with an index of 150 has overall costs roughly 50% above the national median, with housing often 2-3× that premium. 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 108 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 108 and rent of $1,772/mo, while Memphis (ranked #6) has a cost index of 86 and rent of $1,234/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 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.