The Most Affordable Cities in Tennessee (2026)

Ranked by cost index: the average of renting, buying, goods, and services compared to the national average (100). All data from Census ACS 2024 and BEA Regional Price Parities 2023.

1

Memphis

78.6

Rent: $1,263/mo · Homes: $209,800 · Income: $52,679

No state income tax · Sales tax: 9.25%

2

Knoxville

84.5

Rent: $1,289/mo · Homes: $294,700 · Income: $57,298

No state income tax · Sales tax: 9.75%

3

Clarksville

85.8

Rent: $1,356/mo · Homes: $307,300 · Income: $73,465

No state income tax · Sales tax: 9.5%

4

Chattanooga

88.1

Rent: $1,396/mo · Homes: $323,700 · Income: $66,060

No state income tax · Sales tax: 9.25%

5

Germantown

89.9

Rent: $1,350/mo · Homes: $370,000 · Income: $102,000

No state income tax · Sales tax: 9.25%

6

Nashville

107.2

Rent: $1,669/mo · Homes: $438,800 · Income: $80,090

No state income tax · Sales tax: 9.25%

7

Murfreesboro

108.6

Rent: $1,680/mo · Homes: $456,700 · Income: $84,457

No state income tax · Sales tax: 9.75%

Sources: Rent and home prices from Census ACS 2024. Goods and services from BEA Regional Price Parities 2023. Tax rates from Tax Foundation.