Considering a move to Tennessee? With lively cities and scenic towns, the state is known for charm and affordability. The average cost of living in Tennessee in 2025 is 90.3 on the cost-of-living index, well below the national average. Essentials like groceries, housing, and healthcare cost less here than in much of the US.
It is easy to see why many people choose Tennessee over neighbors like Georgia, North Carolina, and Texas. The state offers a clear cost advantage, and with lower expenses from rent to childcare, paychecks go further. Let’s break down what to expect across categories.
TL;DR: Average Cost of Living in Tennessee 2025
- Cost-of-living index: 90.3 (below national average)
- Required salary (middle-class): $2,228/month (single), $4,905/month (family of four)
- Median rent statewide: $1,164; Nashville: $1,272; Memphis: $900
- Median home price: $299,300
- Utilities average: $169/month
- Monthly groceries: $345
- Annual transportation costs: ~$11,600
- Healthcare premium: $428/month
Understanding Tennessee’s Average Cost of Living
Tennessee ranks as one of the most affordable states in the US in 2025. The average cost of living here allows residents to enjoy a good quality of life without overspending. In larger cities like Nashville and Memphis, monthly expenses are generally balanced against local wages, offering solid purchasing power.
For example, a single person living comfortably needs a monthly income of $2,228. Meanwhile, a family of four should plan for around $4,905 per month to cover necessities and some discretionary spending. This affordability is especially appealing compared to neighboring states with higher cost indexes.
Housing tends to be the largest part of this budget. Yet, Tennessee’s housing costs remain reasonable, with rents and home prices well below many national averages. Utilities, groceries, and healthcare costs also contribute to Tennessee’s overall affordability, helping keep monthly budgets manageable.
Housing Market and Average Rent in Tennessee
It is clear that housing drives the average cost of living in Tennessee. Statewide, median rent is $1,164. Homebuyers see a median price of $299,300. Meanwhile, both options are significantly more affordable than in many neighboring states.
How Tennessee’s Housing Compares
- Georgia: Median rent $1,435 (+23%); median home price $334,000 (+12%)
- North Carolina: Rent $1,359 (+17%); home price $367,600 (+23%)
- Alabama: Rent $950 (−18%); home value $207,145 (−31%)
- Kentucky: Rent $950 (−18%); home value $211,465 (−29%)
- Texas: Rent $1,995 (+71%); home price $299,787 (almost identical)
On the other hand, different Tennessee cities offer unique experiences and price points. Nashville has higher rents and home prices (median home $414,000). However, Memphis provides some of the best rental deals. Meanwhile, cities like Knoxville and Chattanooga balance affordability and career options.
👉 Looking for homes for sale in Tennessee that match your budget? You’re sure to find it on Houzeo – America’s best home buying website. Here, you can filter through thousands of listings based on price, amenities, beds and baths, etc., helping you find the perfect investment opportunity.
Utilities and Other Living Expenses in Tennessee
The average cost of living in Tennessee is kept low by very reasonable utilities. On average, utility bills total $169 per month, nearly 10% less than the national average. Therefore, residents save on basic services year-round.
State Utility Bill Comparison
- Georgia: $159/month (5% less)
- North Carolina: $175/month (2% less)
- Alabama: $195/month (5% more)
- Kentucky: $149/month (13% less)
- Texas: $180/month (1% more)
Groceries cost about $345 each month. Therefore, feeding a typical Tennessee family is affordable. Dining out also costs about 8% less than the national average.
Meanwhile, transportation is a big expense for many. Average annual costs are about $11,600, with gas at $3.05 per gallon. Both public and private transportation remain accessible, especially in places like Memphis and Chattanooga.
As for healthcare, monthly premiums average $428 while out-of-pocket costs are manageable. This is 7% below the national average, making Tennessee a sound choice for health-conscious households.
Average Salary and Job Market in Tennessee
A salary of roughly $53,460 per year—or about $4,455 per month—is needed to live comfortably. Therefore, the average cost of living in Tennessee is very manageable compared to other states.
- Georgia: $57,900/year
- North Carolina: $62,580/year
- Alabama: $51,600/year
- Kentucky: $52,000/year
- Texas: $58,200/year
Nashville and Chattanooga continue to add jobs in healthcare, tech, and music. Knoxville and Memphis also thrive as regional employment centers. As a result, many residents enjoy both higher earnings and lower expenses.
Is Tennessee Expensive? Cost of Living Benefits
Tennessee is not expensive by national standards. In fact, the average cost of living in Tennessee remains the biggest draw for new residents. Home prices, utilities, and childcare all come in below regional peers. Additionally, there is no state income tax, so salaries stretch further.
Meanwhile, life in Tennessee includes great amenities. There are abundant parks, thriving music scenes, and vibrant communities statewide. Lower costs mean more disposable income for fun and family.
Regional Insights
- Nashville: Top jobs, arts, and culture; higher housing, but still a value compared to other big cities.
- Memphis: Low rent and cost; strong local economy in logistics and healthcare sectors.
- Knoxville: Affordable, outdoorsy, and a college town.
- Chattanooga: Tech jobs are booming; very reasonable housing costs and beautiful riverfront views.
- Murfreesboro/Clarksville: Ideal for families; excellent schools and easy access to Nashville.
Because neighborhood prices vary, research local areas before making a move.
Final Thought on Tennessee’s Cost of Living
To sum up, the average cost of living in Tennessee in 2025 is an outstanding value. The state blends low prices, abundant amenities, and a welcoming community.
Compared to nearby states, Tennessee leads in affordability, especially when it comes to housing, utilities, and transportation. Therefore, newcomers and residents alike find reasons to stay and thrive here.
👉 Start your home search today by exploring the latest Tennessee homes for sale on Houzeo and discover neighborhoods that fit your budget and lifestyle.
FAQs
Is Tennessee expensive to live in?
No, the average cost of living in Tennessee is much lower than the national average.
How much does housing cost in Tennessee?
The median rent in Tennessee is $1,164 per month, and the median home price is $299,300.
How much salary is needed to live comfortably in Tennessee?
Around $53,460 per year for a middle-class lifestyle, but this amount is lower in smaller cities and rural areas statewide.
What are average utility and grocery costs in Tennessee?
Average utility costs in Tennessee are about $169 per month, while typical grocery expenses run around $345 per month for a household.
Where are the most affordable places to live in Tennessee?
Memphis, Chattanooga, and many smaller cities and suburbs offer lower-than-average housing and living costs. Nashville is pricier but offers strong job opportunities.
