Cost of Living in Tennessee

Tennessee has a cost of living index of 80, making it 20% less expensive than the national average. The statewide median household income is $62,905 (16% below the US median of $75,149). Across 465 cities tracked in Tennessee, costs vary widely depending on location, proximity to metro areas, and local housing markets.

Housing drives most of the variation. The average median rent across Tennessee cities is $931/mo (29% below the national median of $1,319), and the average median home value is $215,963 (29% below the national figure of $304,900). There is a 124-point spread between the most affordable city, La Follette (index 62), and the most expensive, Brentwood (index 186) — an enormous range that reflects dramatic differences in housing markets within the state.

When evaluating Tennessee, it helps to look beyond the state average. Individual city costs can deviate significantly — use the map and rankings below to compare specific locations.

The largest cities in Tennessee by population are Nashville-Davidson metropolitan government (balance) (index 110, pop. 684,298), Memphis (index 79, pop. 629,063), Knoxville (index 84, pop. 193,721), Chattanooga (index 89, pop. 182,832), and Clarksville (index 88, pop. 171,897). Cost of living varies considerably even among these major population centers, highlighting the importance of comparing individual cities rather than relying on the state average alone.

Data: US Census Bureau (ACS 2023), Zillow, HUD, BEA Regional Price Parities. Updated monthly.