Cost of Living in Chattanooga, TN

With a cost of living index of 89, Chattanooga, TN is a very affordable place to live. Living here is 11% cheaper than the national average and 8% above the Tennessee state average of 80. As a major city with a population of 182,832, Chattanooga offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Chattanooga's cost of living. The median monthly rent is $1,155 (12% below the US median of $1,319), and the median home value sits at $259,200 (15% below the national median of $304,900). At current prices, the median home costs roughly 4.2x the median household income — a moderately affordable ratio by today's standards.

The median household income in Chattanooga is $61,028, which is 19% lower than the national median of $75,149. Residents spend roughly 23% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Everyday prices in the Chattanooga, TN-GA (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.