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From the home of country music to the beautiful Great Smoky Mountains, Tennessee has a lot going for it. Its diverse mix means there’s something for every type of lifestyle. If you’re looking for a thriving job market and plenty of delicious barbecue, Tennessee is right for you.
To be extra sure, though, you’ll need to crunch some numbers. Can you afford to live in Tennessee? Probably. You’ll just need to align your budget to the cost of living in Tennessee. Here are the specific areas worth investigating to make sure all your dollars and cents line up.
Tennessee housing prices
As a state, Tennessee on the whole is pretty affordable when it comes to housing. Most cities have average housing prices below the national average, making housing one piece of your overall cost of living in Tennessee you may not have to worry too much about.
There are great places to live in Tennessee throughout the state, from one end to the other. Here are a few to consider.
Chattanooga
With its thriving downtown area, full of culture and delicious food, Chattanooga draws people in with its proximity to so much outdoor fun. Lookout Mountain and the Tennessee River provide ample opportunities for hiking, biking, rock climbing, boating and more.
A little pricier than some other Tennessee towns on the list, Chattanooga home prices are only 11.5 percent below the national average. Both one-bed and two-bed apartments have moved along the scale by 6 percent when it comes to pricing, but one went up, and the other went down. A one-bedroom apartment in Chattanooga has an average rent of $1,322, up 6 percent. Two-bedroom apartments have an average rent of $1,510 per month, down 6 percent.
Home prices have seen a large increase. With a median sale price in Chattanooga of $308,000, they’re up 23 percent over last year.
Knoxville
Home to the University of Tennessee, most Knoxville residents, regardless of their lifestyle, are Vols fans. This fun city is almost always dotted with food trucks, and the craft beer scene is huge. The cost of living is also extremely reasonable and average housing prices are 31 percent below the national average.
Knoxville’s popularity is leading to rising rent and home prices, but costs are still on the more affordable end. One-bedroom apartments are up 39 percent over last year but have an average rent of $1,292 per month. Two-bedroom apartments are up 36 percent over last year but have an average rent of $1,354 per month.
Home prices are rising at a slightly slower rate, up 26.8 percent over last year. The median home in Knoxville sells for $305,000.
Memphis
Graceland, the blues and barbecue, that’s really what Memphis is all about. This well-known city along the Mississippi River is full of history, music and culture. With housing prices 22.5 percent below the national average, it’s also another affordable Tennessee town to potentially call home.
Monthly rent is rising inconsistently, although overall costs are staying at the lower end. One-bedroom apartments actually went down 2 percent in average costs over last year. They’re currently an average of $947 per month. Two-bedroom apartment prices rose 11 percent over last year but still average out at only $1,075 per month.
The median home price in Memphis is $205,000, up 9.9 percent over last year.
Morristown
Small-town living right at the base of the Great Smoky Mountains? Yes, please. Morristown has a great location, a diverse industrial-based workforce and a quaint downtown area. It’s also incredibly affordable. With housing prices 33.9 percent below the national average, and an average apartment rent of $913 per month, you shouldn’t have an issue finding a place to live.
Home prices are on the rise, but are still relatively affordable. The median home price in Morristown is $277,000, up 59.6 percent over last year.
Nashville
Industry, entertainment and opportunity make Nashville one of the most perfect places to live in Tennessee. It’s also the most expensive. With a walkable downtown that boasts nightlife you can’t beat, excellent universities and a lot of job opportunities, it’s no wonder the average housing prices are 2.3 percent above the national average.
It’s also no surprise housing costs are on the rise. The average rent for a two-bedroom apartment in Nashville is up 66 percent over last year to $2,788 per month. That’s quite an increase. One-bedrooms are rising in price more slowly, up only 30 percent over last year to an average monthly rent of $2,036. Still, this is the most expensive rent on our Tennessee city list.
Home prices are also on the higher end comparatively. The median sale price in Nashville is $470,000, up 22.1 percent from last year.
Food prices
Another cost of living in Tennessee is the food you eat. Tennessee has an amazing menu of local delicacies. Iconic local foods include barbecue (yes to the meat and three), fried catfish and that very hot chicken. When not eating out, the average Tennesseean spends between $233 and $267 per month on groceries. This buys a lot of fixins’ since food prices in every city are below the national average.
- Knoxville is 10.6 percent below the national average
- Chattanooga and Memphis are both 5.3 percent below the national average
- Nashville is 2 percent below the national average
- Morristown is 1 percent below the national average
Even with overall lower prices, there are still cost discrepancies between cities. If you’re looking for a deal on fried chicken, for example, you’ll pay $1.06 in Memphis, but $1.81 in Nashville. On the flip side, if you’re thinking about adding fresh fruit to your yummy banana pudding recipe, bananas in Memphis are 10 cents more than in Nashville.
You’ll also find significant price differences when it’s time to take that special someone out to dinner. A three-course meal for two in Knoxville is $47.50, but that same meal in Nashville is $67.50. That’s a 30 percent increase in price, all for the same food.
Utility prices
Throughout Tennessee, most utility costs are below the national average. This includes monthly bills for electricity, natural gas, water and even internet. Only one city just barely climbs above it.
- Nashville is 11.6 percent below the national average
- Chattanooga is 9.9 percent below the national average
- Memphis is 7.1 percent below the national average
- Knoxville is 1.3 percent below the national average
- Morristown is 0.5 percent above the national average
Even with these averages, energy bills are definitely on the expensive side for the cost of living in Tennessee. The average energy bill in Nashville, our least expensive city, is $137.69. This bill goes up to $175.45 in Morristown, where utilities are the priciest.
Only a small percent of the energy used throughout Tennessee comes from renewable energy sources, but the state is a great candidate to take advantage of solar power because of its nice weather. Could that lead to even lower utility prices down the road? We’ll have to wait and see.
Transportation prices
When it comes to transportation prices, Tennessee cities all fall below the national average. This could make car ownership more affordable overall, which is good since road-tripping across this state is always a good time.
- Morristown is 19.9 percent below the national average
- Knoxville is 16.6 percent below the national average
- Chattanooga is 10.7 percent below the national average
- Memphis is 8.4 percent below the national average
- Nashville is 8.1 percent below the national average
All cities on this list have public transportation options, and each has at least one highly walkable part of the city. Overall, though, each city isn’t designed to solely get where you need to go on foot or by bike. It’s best to take advantage of public transportation and probably own a car, as well.
MATA Transit in Memphis
Whether by bus or trolley, the Memphis Area Transit Authority or MATA is one of the largest public transit operators in the state. Coverage includes the City of Memphis, as well as parts of Shelby County.
Trolley service consists of three lines that crisscross the downtown area along the Riverfront, Main Street and Madison Avenue. A one-way fare is $1.00, but you can buy a three-day pass for $9.00, or a 6-month pass for $75.00.
Bus service extends the coverage, taking you out of just downtown. A one-way fare here is also $1.00, but you can buy a daily fast pass for $2.00. Seven-day and 31-day passes are not currently available, but will most likely come soon.
WeGo in Nashville
Consisting of both buses and trains WeGo in Nashville has 26 local routes and eight regional routes to travel on. Routes break out into the following groups:
- Frequent
- Local
- Connector
- Express
- Train shuttles.
All riders use a QuickTicket reloadable card, the accompanying app or a non-reloadable ticket to access all WeGo routes and vehicles. The reloadable card costs $3.00, and then, you add money to it for use. To estimate how much you’d want to load in, it costs $4.00 for an all-day pass and $65 for a 31-day pass to use local service. Regional service has an increased cost. One ride is $4.25.
CARTA in Chattanooga
The Chattanooga Area Regional Transit Authority, or CARTA, consists of 19 electric bus routes that go through the city. Extending out from the city center, CARTA also operates the Lookout Mountain Incline Railway, which is the steepest passenger railway in the world.
A one-way cash fare on CARTA is $1.50, but you can get a 24-hour unlimited ride pass, which is more cost-effective. This pass costs $6.00 the first time you purchase it and $4.00 every additional 24 hours you renew. There’s also a 7-day pass for $15.00 and a 31-day pass for $50.
Healthcare prices
Healthcare prices, another key component of your overall cost of living in Tennessee, are all below the national average. This typically means more affordable visits to the doctor, dentist and even eye doctor.
- Memphis is 12.8 percent below the national average
- Morristown is 7.9 percent below the national average
- Knoxville is 6.9 percent below the national average
- Nashville is 4.3 percent below the national average
- Chattanooga is 2.9 percent below the national average
What these numbers translate to when it comes to the average visit to your doctor’s office is somewhere close to $100 per visit. In Morristown, the average doctor’s visit is $85.67, and in Nashville, it’s $109.03.
Goods and services prices
All those items in your monthly budget that you enjoy, but don’t need, fall into the goods and services category of your overall cost of living in Tennessee. They’re must-haves for your own well-being, but they’re all the things you could live without if you had no choice. Most Tennessee towns, again, fall below the national average.
- Knoxville is 11.3 percent below the national average
- Memphis is 11.1 percent below the national average
- Chattanooga is 7 percent below the national average
- Nashville is 4.8 percent below the national average
- Morristown is 2.1 percent above the national average
Just because Knoxville has the cheapest overall goods and services, doesn’t mean that everything there will cost less than in more expensive cities. The best way to effectively budget is to look specifically at the goods and services you want on your list. Here are a few common ones.
Morristown may have the highest national average for goods and services, but it has the cheapest haircut. Knoxville may have the lowest national average for goods and services, but it has the most expensive pizza, and can we talk about the $24 haircut in Nashville? As you can see, there are inconsistencies with pricing for individual services, which is why it’s best to look at the ones you use most frequently when planning a budget.
Childcare costs
One of the most expensive types of goods and services out there is childcare. With very young children, the expense of their care during the day can quickly add up. Even if you don’t have any little ones yet, understanding what this expense could do to your budget is important.
In Tennessee, the two most expensive cities when it comes to private, full-day preschool are Nashville and Morristown. Both have you paying over $1,000 per month for this particular service. In Nashville, the monthly cost is $1,037. Morristown is only slightly behind with an average monthly cost of $1,003.
Chattanooga is the least expensive city for preschool, at an average of $607 per month. Other cities range anywhere from $645 up to over $880.
Taxes in Tennessee
Tennessee has no individual state income tax but does impose a 7 percent state sales tax. The maximum local sales that can get added to that is 2.75 percent. This means that each city may have a different sales tax, although the state average is 9.55 percent.
- Memphis has a sales tax rate of 9.75 percent
- Nashville has a sales tax rate of 9.25 percent
- Chattanooga has a sales tax rate of 9.25 percent
- Knoxville has a sales tax rate of 9.25 percent
- Morristown has a sales tax rate of 9.75 percent
For those cities with the highest sales tax, for every $1,000 you spend shopping, you’re paying almost $100 in taxes. That’s a pretty heavy markup for a cost of living in Tennessee.
How much do I need to earn to live in Tennessee?
Overall, the cost of living in Tennessee is pretty affordable. The most common components you’d use to total your overall cost of living are below the national average. To really calculate what you can afford, though, use our rent calculator to ensure your budget perfectly aligns with prices in Tennessee.
To get your budget started, you can quickly do some math around rent. The average rent in Tennessee is $1,432 per month, and rent should only take about 30 percent of your annual salary per year. To afford the average rent in Tennessee, you’ll need a minimum salary of $57,280. This is good news since the average annual salary in the state is $74,408, well above what you need to squeak by.
Living in Tennessee
Tennessee is a fully-packed state that’s worth exploring. Between the food, music, history, natural beauty and, of course, football, you’ll never be without somewhere to go living here. What’s even better, the cost of living in Tennessee is most likely affordable for you, so crunch those numbers and get your budget together. Then, start looking for that perfect city in Tennessee where you can pop off those cowboy boots and relax.
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The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of June 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Source: rent.com