Affordable Places to Live in Tennessee (2026) | Buyer Math

Tennessee is a highly desirable place to live, offering a low cost of living, no state income tax, and stunning natural beauty. With a strong job market and diverse amenities, the state continues to attract new residents seeking affordability and quality of life.

As of 2024, Tennessee boasts a median home price of approximately $392,900, an average rent of $981, and a median household income of $67,097. The state also maintains a low unemployment rate of 3.0%, making it an attractive option for homebuyers and renters alike.

In this guide, we’ll explore Tennessee’s most affordable cities, cost-of-living trends, and valuable resources to help you find a home that fits your budget. Whether you're relocating or simply looking for a great place to live, Tennessee offers a wealth of opportunities

Tennessee is an increasingly popular choice for those seeking a balance between affordability, quality of life, and access to outdoor recreation. Here’s why Tennessee stands out:

• No State Income Tax: One of the biggest draws is the absence of state income tax, which helps residents save more of their hard-earned money.
• Mild Climate and Scenic Beauty: Tennessee offers a pleasant climate with four distinct seasons and is home to stunning natural landscapes, including the Great Smoky Mountains and numerous lakes and rivers.
• Cultural and Economic Growth: Cities like Nashville, Knoxville, and Chattanooga are experiencing economic booms, offering job opportunities while maintaining affordable housing options.
• Small-Town Charm and Big-City Convenience: Tennessee strikes the perfect balance between rural tranquility and urban amenities.

Tennessee's cost of living index is 89.1, which is 10.9% lower than the U.S. national average of 100. This makes it one of the more affordable states in the country. Housing costs are particularly low, with a housing index of 79.6, significantly below the national average. Would you like a breakdown of specific expenses like groceries, utilities, or healthcare?

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• Median Home Price: Around $320,000, compared to the national median of $390,000.

• Average Rent: Approximately $1,300 for a one-bedroom apartment, with lower prices in smaller towns.

• Monthly utilities (electricity, water, internet) average around $150–$200 depending on the season and location.

• Tennessee’s public transit options are limited, but gas prices and car insurance costs are generally lower than the national average. Expect to pay around $100–$150 per month on fuel, depending on your commute.

• Grocery costs in Tennessee are reasonable, averaging around $400–$600 per month for a family of four.

Here are some of the best budget-friendly towns and cities in Tennessee that combine affordability with quality of life.

Chattanooga, Tennessee, offers a relatively affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of December 2024, the median sale price of a home in Chattanooga is approximately $340,000, reflecting a 7.9% increase over the past year. This is slightly above the national median home price of $338,100.

• Cost of Living: Chattanooga's overall cost of living is about 10% lower than the U.S. average, making it an economical choice for residents. Housing expenses are particularly affordable, with costs approximately 14% less than the national average. Utilities and transportation expenses are also lower, at 11% and 12% below the national average, respectively.

• Job Availability: The city's economy is diverse, with employment opportunities spanning manufacturing, healthcare, retail, and education sectors. Major employers include Volkswagen and Amazon, contributing to a robust job market. The median household income in Chattanooga is $57,703, which aligns with the city's lower cost of living.

Knoxville, Tennessee, offers an affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of January 2025, the median sale price of a home in Knoxville was approximately $314,250, reflecting a 0.7% increase over the past year.

• Cost of Living: Overall, Knoxville's cost of living is about 13% lower than the national average, with housing expenses approximately 23% below the national average.

• Job Availability: Knoxville's economy is diverse, with employment opportunities spanning manufacturing, healthcare, retail, and education sectors. The city's economic growth has been steady, with new businesses and industries setting up shop in the area, leading to increased job opportunities.

Murfreesboro, Tennessee, offers a balanced lifestyle with affordable housing, a reasonable cost of living, and a diverse job market.

• Home Prices: As of January 2025, the average home value in Murfreesboro is approximately $414,947, reflecting a 2.4% increase over the past year.
• Cost of Living: Overall, Murfreesboro's cost of living is about 9% lower than the national average.
• Job Availability: Murfreesboro's economy is diverse, with employment opportunities spanning manufacturing, healthcare, retail, and education sectors. The median household income in Murfreesboro is $70,451, providing a stable economic environment for residents.

Johnson City, Tennessee, offers an affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of January 2025, the median sale price of a home in Johnson City was approximately $307,475, reflecting a 7.9% increase over the past year.

• Cost of Living: Overall, Johnson City's cost of living is about 4% lower than the national average, with housing expenses approximately 1% below the national average.

• Job Availability: Johnson City's economy is diverse, with employment opportunities spanning healthcare, education, manufacturing, and retail sectors. The median household income in Johnson City is $53,173, providing a stable economic environment for residents.

Clarksville, Tennessee, offers an affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of January 2025, the median sale price of a home in Clarksville was approximately $309,000, reflecting a 4.1% increase over the past year.
• Cost of Living: Overall, Clarksville's cost of living is about 7% lower than the national average, with housing expenses approximately 22% less than the national average.
• Job Availability: Clarksville's economy is diverse, with employment opportunities spanning healthcare, education, manufacturing, and retail sectors. The city's proximity to Fort Campbell also boosts employment, with many military personnel choosing to settle here after their service.

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If buying a home is part of your plan, here are some of the most affordable places to consider:

Memphis, Tennessee, offers an affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of early 2025, the median sale price of a home in Memphis is around $185,000, reflecting a notable increase of 15.6% over the past year.

• Cost of Living: Memphis' cost of living is about 10% lower than the national average, with housing expenses roughly 15% below the national average.

• Job Availability: The city has a diverse economy, with employment opportunities in healthcare, education, manufacturing, and retail sectors. With notable employers like FedEx and St. Jude Children's Research Hospital, Memphis provides a stable job market.

Cleveland, Tennessee, offers an affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of January 2025, the median sale price of a home in Cleveland was approximately $315,885, reflecting a 6.8% increase over the past year.
• Cost of Living: Overall, Cleveland's cost of living is about 17% lower than the national average, with housing expenses approximately 18% below the national average.
• Job Availability: Cleveland's economy is diverse, with employment opportunities spanning manufacturing, healthcare, retail, and education sectors. The city's unemployment rate stands at 5.6%, slightly below the national average of 6.0%.

Columbia, Tennessee, offers a blend of affordable living, a growing job market, and a rich historical backdrop.

• Home Prices: As of January 2025, the median home sale price in Columbia was approximately $391,520, reflecting a 10.8% increase from the previous year.
• Cost of Living: Columbia's overall cost of living is about 4% lower than the national average. Housing expenses are approximately 2% below the national average, while utilities are about 14% less expensive.
• Job Availability: The city's economy is diverse, with employment opportunities in manufacturing, healthcare, retail, and education sectors. The unemployment rate stands at 5.6%, slightly below the national average of 6.0%.

Cookeville, Tennessee, offers an affordable lifestyle with reasonable housing costs, a cost-effective living environment, and a diverse job market.

• Home Prices: As of January 2025, the median sale price of a home in Cookeville was approximately $320,000, reflecting a 1.5% decrease from the previous year.

• Cost of Living: Overall, Cookeville's cost of living is about 9% lower than the national average.

• Job Availability: The city's economy is diverse, with employment opportunities spanning manufacturing, healthcare, retail, and education sectors. The unemployment rate stands at 5.4%, slightly below the national average of 6.0%.

Tennessee offers several affordable housing initiatives to help residents find homes that fit their budgets. These programs are especially beneficial for first-time homebuyers and low-income families.

1. Tennessee Housing Development Agency (THDA): Provides down payment assistance and low-interest mortgage loans for first-time homebuyers.
2. Section 8 Housing Choice Voucher Program: Helps low-income families afford safe and sanitary housing in the private market.
3. USDA Rural Development Loans: For those looking to settle in rural areas, these loans offer affordable financing options.

To apply for these programs:

• Visit the THDA Website: Check available resources and eligibility criteria.

• Contact Local Housing Authorities: Get personalized advice on affordable housing options in your area.

Tennessee is a great place to live, with lively cities, charming small towns, and beautiful outdoor spaces. It has a strong job market and affordable housing, making it a great choice for families, young professionals, and retirees.

As home prices keep rising, affordability is a big concern for many buyers. reAlpha is helping by lowering home purchase costs by 3%, making it easier to own a home.

If you're looking for a home in Tennessee or need housing assistance, this guide will help you find the best options. Start your journey to affordable living today!