Cost of Living in Memphis, TN
Memphis is about 13% cheaper than the national average.
What Things Cost
Compared to the US average (100)
Census ACS 2024
Census ACS 2024
BEA RPP 2023
BEA RPP 2023
Memphis at a Glance
No state income tax. That saves a typical household thousands per year compared to states like California (13.3%) or New York (10.9%).
Sources: Census ACS 2024, Tax Foundation.
Memphis is the most affordable major metro in the South and arguably in the entire country. The median home price of about $185,000 combined with zero state income tax creates a financial equation that lets modest incomes buy comfortable lives. The cultural contribution of Memphis (blues, soul, rock and roll, barbecue) is wildly disproportionate to its size and cost. Beale Street, Sun Studio, Graceland, and the National Civil Rights Museum are not tourist attractions; they are the soul of American music and history.
How People Get Around
Source: Census ACS 2024.
Who Lives Here
Source: Census ACS 2024.
Why People Move to Memphis
The barbecue alone justifies consideration. Central BBQ, The Bar-B-Q Shop, Payne's, and Cozy Corner serve food that competes with any culinary tradition in America. The blues heritage is deep and still living on Beale Street and in juke joints throughout the city. The National Civil Rights Museum at the Lorraine Motel is one of the most important museums in America. FedEx is headquartered here, and St. Jude Children's Research Hospital provides healthcare and research employment. The no-income-tax advantage makes every dollar go further.
Neighborhoods
Midtown (Cooper-Young, Overton Square, Overton Park) is the cultural heart with restaurants, galleries, and walkable character. East Memphis is affluent and established. Downtown has the Beale Street tourism corridor plus genuine revitalization. South Main is the arts district. Germantown and Collierville are affluent eastern suburbs with top-rated schools. For affordable urban living, Binghampton and Frayser offer the lowest prices.
Things to Consider
Memphis has real challenges that the low prices reflect. Crime rates are among the highest of any large US metro. Poverty is significant and visible. The school system has struggled. The city has lost population over recent decades. Some neighborhoods have significant blight alongside others with character. These are not abstract statistics; they affect daily life. The summer heat and humidity are oppressive.
Compare Memphis To...
Frequently Asked Questions About Memphis
By most measures, yes. The cost of living is about 16% below the national average, and the median home price of $209,800 is among the lowest of any metro over 1 million. Combined with Tennessee's zero income tax, the purchasing power of a dollar in Memphis is extraordinary. The low prices do reflect genuine challenges with crime, poverty, and infrastructure.
Memphis has elevated crime rates, and this is the honest reality of the city. Violent crime rates are among the highest nationally. However, crime is concentrated in specific neighborhoods, and areas like Midtown, East Memphis, and the eastern suburbs have safety levels closer to the national average. Neighborhood selection is critical. Many Memphis residents love the city deeply while acknowledging the challenges.
Memphis-style barbecue is its own tradition, distinct from Kansas City, Texas, and Carolina styles. Dry-rubbed ribs (no sauce needed) are the signature. Pulled pork on a bun with coleslaw is the workhorse. Whole-hog smoking is the deepest tradition. The debate between Central BBQ, The Bar-B-Q Shop, Payne's, and Cozy Corner is a civic conversation. The food alone is worth the cost of living.