Cost of Living in Mountain City, TN

With a cost of living index of 60, Mountain City, TN is one of the most affordable cities in the country. Living here is 40% cheaper than the national average and 20% below the Tennessee state average of 80. Mountain City is a small community of 2,275 residents.

Housing costs are the biggest factor in Mountain City's cost of living. The median monthly rent is $420 (68% below the US median of $1,319), and the median home value sits at $186,800 (39% below the national median of $304,900). At current prices, the median home costs roughly 5.1x the median household income — a stretch for many buyers, though not uncommon in today's market.

The median household income in Mountain City is $36,902, which is 51% lower than the national median of $75,149. Residents spend roughly 14% 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.

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.