Cost of Living in Parsons, TN

With a cost of living index of 63, Parsons, TN is one of the most affordable cities in the country. Living here is 37% cheaper than the national average and 17% below the Tennessee state average of 80. Parsons is a small community of 2,578 residents.

Housing costs are the biggest factor in Parsons's cost of living. The median monthly rent is $731 (45% below the US median of $1,319), and the median home value sits at $107,400 (65% below the national median of $304,900). At current prices, the median home costs roughly 3.3x the median household income — a moderately affordable ratio by today's standards.

The median household income in Parsons is $32,129, which is 57% lower than the national median of $75,149. Residents spend roughly 27% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. 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.