Best Affordable Places to Live in Tennessee in 2024

Best Places to Live in Tennessee

Tennessee can be a wonderful and affordable place to live. Some of the reasons why it’s popular: It has natural beauty, a welcoming climate, ample career and educational opportunities, and plenty of arts and cultural activities as well. In addition, it can offer a low cost of living and no state personal income tax.

Some of the state’s popular places include Nashville, known for its country music scene, nightlife, and a growing job market. There’s also Chattanooga, which is close to the Appalachian Mountains and many historical sites, and Memphis, home of the blues, with a thriving music scene, as well as the Memphis Zoo, a popular family attraction.

This guide will introduce you to these and other great places to live in Tennessee.

💡 Quick Tip: You deserve a more zen mortgage loan. When you buy a home, SoFi offers a guarantee that your loan will close on time. Backed by a $5,000 credit.‡

Best Affordable Places to Live in Tennessee

The first stop on this tour of the best places to live in Tennessee will be the most affordable cities and towns to call home. These locations offer a money-smart lifestyle and many other amenities.

1. Chattanooga

Photo credit: iStock/Kruck20

This city by the foot of the Appalachian Mountains is near the border of Georgia and offers easy access to other parts of the state. Aside from its outdoor amenities, residents also enjoy getting around the city by bus, trolleybus or walking. This means it can be a less car-dependent lifestyle, which some may prefer. While most residents work at white-collar jobs, around 21% of the population works blue-collar ones.

Population: 184,086

Median Household Income: $59,119

Cost of Living: 92.8

Median Rent Price: $1,750

Home Price-to-Income Ratio: 2.30

Average Property Tax: 0.86%

Housing Affordability: Chattanooga has extremely affordable housing, with a low home price-to-income ratio of 2.30. If you’re shopping for a home, getting a jump on the mortgage preapproval process can be a smart move. The median rent price is $1,750, much lower than national figures.

2. Nashville

Photo credit: iStock/Jonathan Ross

Nicknamed “Music City,” Nashville offers plenty of nightlife and musical entertainment even if you aren’t a music lover. Also well-known for its nightlife, there are many events happening downtown, parks, and restaurants with different types of cuisines. Public transportation is accessible — there are buses and trains. As it’s one of the more populated cities, you’ll be bound to find some decent job opportunities here.

Population: 683,622

Median Household Income: $65,565

Cost of Living: 95.1

Median Rent Price: $2,215

Home Price-to-Income Ratio: 3.76

Average Property Tax: 0.96%

Housing Affordability: Nashville has some of the highest property tax rates in the state, though housing appears to be pretty affordable because the home price-to-income ratio is 3.76. The median rent price is higher than the national one at $2,215, but it’s a cool market.

3. Knoxville

Photo credit: iStock/Kruck20

Though housing costs are larger than some of the more populous cities, Knoxville has plenty of suburbs offering a slower pace of life. Cultural attractions include art and history museums, outdoor spaces, and historical buildings. It’s also home to the University of Tennessee, meaning residents get to enjoy that college town vibe.

Population: 195,889

Median Household Income: $44,308

Cost of Living: 84.9

Median Rent Price: $2,000

Home Price-to-Income Ratio: 3.72

Average Property Tax: 0.72%

Housing Affordability: Knoxville has a home price-to-income ratio of 3.72. This number means that homes are affordable in the area, though the average property tax is one of the higher rates in the state. The rental market is cool, with median prices of $2,000.

4. Memphis

Photo credit: iStock/Sean Pavone

Music or blues fans will love that in addition to a flourishing music scene (you’ll find Beale Street, Sun Studios, and Elvis’ Graceland here), the median rent price is significantly below that of the state. Though the average property tax is higher, the lower costs may make up for it. Other ways to spend time in Memphis include the National Civil Rights Museum and Shelby Farms Park.

Population: 621,056

Median Household Income: $69,021

Cost of Living: 87.2

Median Rent Price: $1,285

Home Price-to-Income Ratio: 1.36

Average Property Tax: 1.38%

Housing Affordability: Memphis has one of the highest average property tax rates, but has an extremely low home price-to-income ratio at 1.36. Meaning, homes are very affordable here. So are rent prices, at a median of $1,285.

5. Jackson

Photo credit: iStock/BOB WESTON

Located around 70 miles outside of Memphis, this small city offers the amenities (including distilleries, an array of restaurants, and a railroad museum) that can make it a vibrant place to settle down. Affordability is a major plus, too: Rents are among the lowest in the state.

Population: 68,380

Median Household Income: $44,778

Cost of Living: 86.1

Median Rent Price: $1,350

Home Price-to-Income Ratio: 2.09

Average Property Tax: 0.72%

Housing Affordability: Jackson has some of the most affordable homes in the state considering the home price-to-income ratio is pretty low at 2.09. If you’re thinking of buying soon, it can be wise to learn the difference between mortgage preapproval vs. prequalification and pick the right option for you. The rental market is cool, with median prices at $1,350.

Recommended: Different Types of Mortgage Loans

Best Places to Live in Tennessee for Families

If you have kids or are thinking they are in your future, there are an array of best places to live in Tennessee for families. Here, five top-notch locations for raising a clan.

1. Brentwood

Housing Affordability: Median home prices are $398,900. However, because of the higher median household income in the area, homes tend to be more affordable to residents (the home price-to-income ratio is 3.04). First-time homebuyer programs in Tennessee could help bring home prices even further in reach for some. The median rent price is higher than other parts of the state at $3,375.

2. Farragut

Photo credit: Flickr/www78 , Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic

Parents are often fans of this suburb of Knoxville because it offers some of the best public schools in the state. Maybe that’s why 76.6% of households in Farragut are families. The area has many walking trails, parks, and some restaurants. With its proximity to Knoxville, many residents can commute to work in the city.

Population: 24,817

Median Household Income: $119,167

Median Rent Price: $2,300

Home Price-to-Income Ratio: 3.72

Average Property Tax: 0.45% to 0.72%

Housing Affordability: Farragut has a warm rental market with a $2,300 median rent price. The home price-to-income ratio is 3.72, indicating homes are affordable for its residents.

3. Germantown

Photo credit: Wikimedia Commons/Thomas R Machnitzki , Creative Commons Attribution 3.0 Unported

Germantown is a suburb east of Memphis that offers plenty of parks for families, as well as a nice selection of restaurants and coffee shops. Families will appreciate that the schools are rated above average. The cost of living in Tennessee can also contribute to this being an affordable place to live. Over 77% of the population are families with most owning their own homes.

Population: 40,816

Median Household Income: $132,949

Median Rent Price: $2,339

Home Price-to-Income Ratio: 0.79

Average Property Tax: 1.38%

Housing Affordability: This suburb has one of the higher property tax rates in the state, though the home price-to-income ratio sits at 0.79. In other words, homes are very affordable for its residents. (Ready to shop? Learn tips for qualifying for a mortgage.) The median rent price is $2,339.

4. Franklin

Photo credit: iStock/DenisTangneyJr

This area can be a terrific home base for families due to its selection of parks and amenities such shops with kid-centered activities. Parents will like the fact that schools are rated highly in the area. Maybe that’s why, of all Franklin residents, around 70% are families.

Population: 86,895

Median Household Income: $102,721

Median Rent Price: $2,795

Home Price-to-Income Ratio: 4.55

Average Property Tax: 0.56%

Housing Affordability: Even though residents earn a higher median household income, the home price-to-income ratio is 4.55. This ratio indicates that homes aren’t as affordable here. The warm rental market has a median rent price of $2,295.

5. Collierville

Photo credit: Wikimedia Commons/Thomas R Machnitzki , Creative Commons Attribution 3.0 Unported

Located east of Memphis, Collierville is full of families: They make up 80.34% of the population. There are many retail and restaurant options, and families will enjoy the many parks this suburban area offers. They may also find the top-rated public schools attractive.

Population: 51,594

Median Household Income: $119,461

Median Rent Price: $2,415

Home Price-to-Income Ratio: 2.94

Average Property Tax: 1.38%

Housing Affordability: Median incomes are higher here, which could explain why homes are affordable for residents, with a home price-to-income ratio is 2.94.

💡 Quick Tip: A VA loan can make home-buying simple for qualified borrowers. Because the VA guarantees a portion of the loan, you could skip a down payment. Plus, you could qualify for lower interest rates, enjoy lower closing costs, and even bypass mortgage insurance.†

Best Places to Live in Tennessee for Young Adults

Recent grads and young professionals are often looking for certain things in a town: a robust job market, reasonable cost of living, and lots of entertainment and nightlife options. Here, learn more about five of the best places to live in Tennessee for young adults.

1. Nashville

Photo credit: iStock/Jonathan Ross

Nashville is a fast growing city with draws that are more than just the music scene. There are many young professionals here with the median age of residents being a tad older than 34. Residents aged between 25 and 44 earn a median salary of $75,350.

Population: 683,622

Median Household Income: $65,565

Median Rent Price: $2,215

Home Price-to-Income Ratio: 3.76

Average Property Tax: 0.96%

Housing Affordability: Nashville has some of the highest property tax rates in the state, though housing appears to be pretty affordable because the home price-to-income ratio is 3.76. The median rent price is higher than the national one at $2,215, and it’s a cool market.

2. Murfreesboro

Photo credit: iStock/DenisTangneyJr

This city is close to Nashville and may be a better fit for those who don’t want to live in a dense urban area. It is still within driving distance to the city for those who want to commute to Nashville. Residents who live here are a median age of 30.9, and with most being in a white-collar profession.

Population: 162,398

Median Household Income: $66,984

Median Rent Price: $2,043

Home Price-to-Income Ratio: 4.09

Average Property Tax: 0.74%

Housing Affordability: Murfreesboro has a median home price of $274,600, but the home price-to-income indicates that homes may not be as affordable for its residents, so first-time homebuyers may need to save a bit longer to live here. Though the median rent price has fallen slightly year over year, the price still sits higher than the national average at $2,043.

3. Knoxville

Photo credit: iStock/Kruck20

Knoxville can offer a relaxed pace of life while still providing many job opportunities and opportunities for young professionals to socialize. There are also many outdoor spaces and activities. Residents are a median age of 33.5 and earn a median wage of $52,185.

Population: 195,889

Median Household Income: $44,308

Median Rent Price: $2,000

Home Price-to-Income Ratio: 3.72

Average Property Tax: 0.72%

Housing Affordability: Knoxville homes are affordable since the home price-to-income ratio is at 3.72. has a home price-to-income ratio of 3.72. The median rent price is slightly lower than the national average.

4. Chattanooga

Photo credit: iStock/Kruck20

Chattanooga, like many other parts of the state, has many outdoor activities like river walks and hiking trails. It also offers other events like music festivals and baseball and soccer games throughout the year. Residents between 25 to 44 earn a median salary of $55,849.

Population: 184,086

Median Household Income: $59,119

Median Rent Price: $1,750

Home Price-to-Income Ratio: 2.30

Average Property Tax: 0.86%

Housing Affordability: Chattanooga has a home price-to-income ratio 2.30. This indicates homes are affordable for its residents. The median rent price is lower than national figures and hasn’t shifted much year over year.

5. Memphis

Photo credit: iStock/Sean Pavone

Memphis is another city with a thriving music scene, but there are plenty of other attractions such as bars, cafes and restaurants. Music festivals and parades also draw crowds. There are many career opportunities since it’s a dense urban area. Over 72% of residents are white collar workers, and those aged 25 to 44 earn a median of $50,938.

Population: 621,056

Median Household Income: $69,021

Median Rent Price: $1,285

Home Price-to-Income Ratio: 1.36

Average Property Tax: 1.38%

Housing Affordability: Memphis has a home price-to-income ratio of 1.36, which is one of the lowest in the state, so homes are very affordable here. Rent prices are also affordable at a median price of $1,285.

Best Places to Live in Tennessee for Retirees

For those looking for the best places to live in Tennessee for retirees, keep this list handy. It contains five towns to consider that have access to nature and historical and cultural attractions, as well as reasonably priced real estate and good medical facilities.

1. Collierville

Photo credit: Wikimedia Commons/Thomas R Machnitzki , Creative Commons Attribution 3.0 Unported

Collierville’s 65 and over residents account for about 14.4% of the population, with typical home values around $513,352. Though the median rent is higher than the state average, residents will enjoy the historical downtown area and access to high-quality medical facilities.

Population: 51,594

Median Household Income: $119,461

Median Rent Price: $2,415

Home Price-to-Income Ratio: 2.94

Average Property Tax: 1.38%

Housing Affordability: Median home prices are $352,200 but since the median household income is at $119,461, homes are affordable — as indicated by the home price-to-income ratio of 2.94. (If you’re prepping to buy, visiting a home loan help center online can give you the facts you need.) Median rent prices are $2,415, higher than the national average.

2. Pigeon Forge

Photo credit: iStock/halbergman

Located in the eastern part of the state, Pigeon Forge offers plenty of activities (since it’s a popular tourist destination) and hikes for those who want a slower pace. There is also a growing arts and crafts community for those looking for a creative network. Around 19% of the population is aged 65 and older.

Population: 6,215

Median Household Income: $50,711

Median Rent Price: $2,800

Home Price-to-Income Ratio: 3.68

Average Property Tax: 0.35%

Housing Affordability: Pigeon Forge has low property tax rates compared to other parts of the state. Homes can be generally affordable here, as evidenced by the 3.68 home price-to-income ratio. The $2,800 median rent price sits higher than national figures.

3. Knoxville

Photo credit: iStock/Kruck20

Knoxville’s slower pace of life and outdoor spaces may be attractive to seniors, making it one of the best places to live in Tennessee for retirees. Other reasons why this is a best place to live in Tennessee for retirees are the opportunities to stroll around cultural attractions such as museums and galleries. It has some of the lowest housing prices in the state, which could be helpful for those 65 and older, which make up 13.9% of the city’s population.

Population: 195,889

Median Household Income: $44,308

Median Rent Price: $2,000

Home Price-to-Income Ratio: 3.72

Average Property Tax: 0.72%

Housing Affordability: The city’s homes are generally affordable — the home price-to-income ratio is 3.72. The median rent price is slightly under the national median price, with prices hovering around the same amounts year over year.

4. Paris

Photo credit: Flickr/Kathleen Tyler Conklin , Creative Commons Attribution 2.0 Generic

A small town located in the northern part of the state, Paris has some of the least expensive housing options in the state, with average home values at $183,566. There is access to the Henry County Medical Center and many hills and forests. Its historical downtown area offers some amenities while not taking away from the rural feel of the area.

Population: 10,339

Median Household Income: $35,958

Median Rent Price: $871

Home Price-to-Income Ratio: 2.92

Average Property Tax: 0.61%

Housing Affordability: Paris has a median home price $105,300 and a home price-to-income ratio of 2.92. What this means is that homes are affordable for its residents. Renters can also take advantage of the $871 median rent price, which hasn’t shifted much year over year.

5. Kingsport

Photo credit: iStock/DenisTangneyJr

With 24.7% of the population being 65 and older, retirees have a decent chance of finding communities or activities geared towards their needs and interests, especially at local senior centers. There is a local transit system for those who’d rather not drive, plus plenty of outdoor areas to rest and relax. Average home values are $227,105.

Population: 56,150

Median Household Income: $43,025

Median Rent Price: $1,400

Home Price-to-Income Ratio: 3.61

Average Property Tax: 0.67%

Housing Affordability: Kingsport has a 3.61 home price-to-income ratio and median home prices at $155,700. In other words, buying a home is within means for its residents. The median price is lower than the national average at $1,400.

Recommended: Cost of Living by State

Best Places to Live in Tennessee Near the Water

Granted, there’s no oceanfront property, but that doesn’t mean there’s a lack of great places to live in Tennessee near the water. If you like strolling by a lake’s shore or paddling down a river, there are plenty of options in the state.

1. Kingston Springs

Housing Affordability: Kingston Springs has a 3.33 home price-to-income ratio. This number indicates that homes are affordable for those that reside there. The rental market is hot, with a median rent price of $1,600.

2. Ashland City

Photo credit: Flickr/SeeMidTN.com , Creative Commons Attribution-NonCommercial 2.0
Generic

Ashland City is a small town situated outside of Nashville and hear the Cumberland and Harpeth rivers. Residents can enjoy camping or the nearby Cheatham Lake recreational area with activities such as hiking, fishing, and swimming. There is also rock climbing at Sydney’s Bluff, adding to the area’s nature-focused activities.

Population: 5,516

Median Household Income: $62,772

Median Rent Price: $1,939

Home Price-to-Income Ratio: 2.90

Average Property Tax: 0.66%

Housing Affordability: Ashland City has a 2.90 home price-to-income ratio, making it an area with affordable housing. The $1,939 median rent price is lower than the national price and hasn’t fluctuated much year over year.

3. Waverly

Housing Affordability: Waverly has a median home price of $139,600 and is quite affordable, with a 2.80 home price-to-income ratio. The median rent price currently sits at $1,500.

4. Tiptonville

Housing Affordability: The home price-to-income ratio is 2.82, meaning that it’ll take over twice your salary to buy a home in Tiptonville. This amount is lower compared to others in the area and is considered to be an indicator of homes being affordable. The median rent price is also low at $550.

5. Surgoinsville

Housing Affordability: The home price-to-income ratio is 3.46, which makes homes in Surgoinsville affordable to its residents. Property taxes are on par with the state average.

---

The Takeaway

Tennessee offers a wealth of affordable places to live, whether one is just starting out after graduation, raising a family, retiring, or looking for a place to put down roots near the water.

If you are contemplating buying a home, it’s a good idea to do your research and see what kind of mortgage loans are available.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

View your rate

Browse Other States

Best Affordable Places to Live in the U.S.

Best Affordable Places to Live in Alaska

Best Affordable Places to Live in Arizona

FAQ

Where is the most desirable place to live in Tennessee?

Some of the most desirable places to live in Tennessee include the larger cities such as Nashville, Memphis, and Chattanooga. Many people find the combination of amenities and job opportunities attractive. There are also more rural options.

What is the best part of living in Tennessee?

Some of the best parts of living in Tennessee include the plentitude of outdoor activities, cultural sights, and the music scene in multiple cities. In addition, the mild climate and affordable cost of living can be very attractive.

---

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOHL0823015