Best Affordable Places to Live in Tennessee in 2025

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Music or blues fans will love the flourishing music scene: You’ll find Beale Street, Sun Studios, and Elvis’ Graceland here. 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. If you’re shopping for a home in Memphis, getting a jump on the mortgage preapproval process can be a smart move.

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Located around 70 miles outside of Memphis, this small city offers all the amenities — including distilleries, an array of restaurants, and a railroad museum — that make it a vibrant place to settle down. Affordability is a major plus, too. 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.

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This city by the foot of the Appalachian Mountains, near the border of Georgia, offers easy access to other parts of the state. Residents can enjoy a less car-dependent lifestyle by getting around the city by bus, trolley, or walking. More than 35% of the population hold a bachelor’s degree or higher.

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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. While the town has one of the higher property tax rates in the state, the low home price-to-income ratio helps take the sting out.

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Also located east of Memphis, Collierville is full of families: They make up 80% 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. First-time homebuyer programs in Tennessee could help bring home prices even further in reach for some.

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Farragut boasts a small-town atmosphere with plenty of community events that celebrate the seasons and the beauty of eastern Tennessee. Parents are often fans of this suburb of Knoxville because it offers some of the best public schools in the state. The area has many walking trails, parks, and restaurants. With its proximity to the city, many residents can commute to work. Ready to shop? Learn tips for qualifying for a mortgage.

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Memphis has a thriving music scene, but there are plenty of other attractions including bars and restaurants, museums and historic sites, and The Peabody Ducks (if you know, you know). Seasonal festivals and parades also draw crowds. The dense urban area provides many career opportunities, and over 28% of adults hold a bachelor’s degree or higher. The cost of living in Tennessee also contributes to this being an affordable place to live.

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Chattanooga has many outdoor activities like river walks and hiking trails, plus unusual attractions like Ruby Falls, a natural cavern system with a massive underground waterfall. Young adults will also appreciate the music festivals, year-round sports, and The Passage, a multilevel arcade and entertainment center. While the home price-to-income ratio is rising, there are still deals to be found.

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Nicknamed “Music City,” Nashville offers plenty of nightlife and entertainment. Downtown, you’ll find parks, museums, and restaurants with a wide variety of cuisines. Public transportation is available if you want to avoid driving. And because it’s a large city, you’re bound to find decent job opportunities. The average home value is $302,628, about $50K below the national average. However, the rising home price-to-income ratio indicates that first-time homebuyers may need to save a bit longer to live here.

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Collierville’s 65 and over residents account for about 15% of the population, with typical home values around $500K. Though the median rent is higher than the state average, residents will enjoy the historical downtown area and access to high-quality medical facilities. If you’re prepping to buy, visiting a home loan help center online can give you the facts you need.

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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 $187,843, and average rents of $850. Then there’s the overall cost of living that’s more than 20% below the national average. The historical downtown area offers some amenities; otherwise, the area is mostly rural. Seniors appreciate the easy access to Henry County Medical Center.

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With 23% of the population being 65 and older, retirees have a decent chance of finding a community with like-minded peers as well as activities geared toward their needs and interests. There is a local transit system for those who’d rather not drive, plus plenty of outdoor areas to explore and relax. Average home values are $241,090, and the local cost of living is well below the national average.

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Ashland City is a small town situated outside of Nashville, near the Cumberland and Harpeth rivers. Residents can enjoy 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.

Waverly promotes itself as “small-town living with big city goals and opportunities.” Case in point: Nashville State Community College has a Waverly campus. The town is situated along the Tennessee River, where residents can enjoy antiquing, golf, and historical sites. The nearby Buffalo River offers canoeing and hiking. Home prices are modest, with an average value of $219,545, and the cost of living is just 80% of the national average.

Last but not least on this list of best places to live in Tennessee near the water is Kingston Springs. Relatively close to Nashville, this up-and-coming town along the Harpeth River offers many outdoor activities such as canoeing and kayaking, and a well-stocked vintage store. The average home value is $454,767.