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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 6 of 6 cities in Tennessee beat the national cost-of-living benchmark of 111. Nashville stands out at 103 on the index, with rent of $1,772/month and household income of $75,197. Assembled from 2026 Census, Zillow, and BLS data.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Nashville | 103 | $1,772 | Details |
| 2 | Memphis | 72 | $1,234 | Details |
| 3 | Knoxville | 100 | $1,708 | Details |
| 4 | Chattanooga | 88 | $1,499 | Details |
| 5 | Clarksville | 80 | $1,376 | Details |
| 6 | Murfreesboro | 98 | $1,683 | Details |
#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
The numbers are clear: 6 of 6 cities in Tennessee beat the national cost-of-living benchmark of 111. Nashville stands out at 103 on the index, with rent of $1,772/month and household income of $75,197. Assembled from 2026 Census, Zillow, and BLS data.
A closer look at Nashville: the cost index of 103 — this is the part where it gets real — breaks down to a Healthcare index of 101 (strongest category) and a Housing index of 103 (weakest). Median rent is $1,772/month — 6% below the national median — while household income sits at $75,197, meaning locals spend about 28% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
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.
Against the national baseline, though: The 6 cities we track in Tennessee paint a clearly affordable picture. Average cost index: 90. Median rent: $1,545/month. Household income: $63,576. Tennessee is known for no income tax, Nashville boom, and Memphis blues — and the data backs that reputation convincingly.
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 |
687,788 residents · Tennessee
Why Nashville ranks #1: the numbers tell a clear story. At 103 on the cost index, residents save roughly 8% less than the typical American. Rent sits at $1,772/month while the median household pulls in $75,197/year. The Healthcare category is particularly strong at 101, though Housing (103) lags behind. Home prices average $429,861 — $37,509 below the national median.
618,639 residents · Tennessee
Memphis earns its position at #2 through a combination that's hard to replicate. The 72 cost index sits 39 points below the national baseline, and the $51,211 median income means purchasing power here is amplified by the low cost base. Homes list at $142,870 — $324,500 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 72, while Healthcare trails at 94.
198,162 residents · Tennessee
Look, 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
A closer look at Chattanooga: the cost index of 88 breaks down to a Housing index of 88 (strongest category) and a Healthcare index of 98 (weakest). That alone makes it worth considering. 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
In plain English: 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.
Total tax burden = state income tax rate + combined sales tax rate + effective property tax rate. We rank cities from lowest combined burden to highest. Keep in mind property tax and sales tax are local-level, so two cities in the same state can differ meaningfully. 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.