Tennessee makes a great place to live, thanks to its breathtaking scenery. The state is adorned with sunlit mountains, rolling hills, cascading waterfalls, and twisting rivers. It also boasts some amazing cities, including Memphis, Nashville, and Chattanooga. Tennessee offers a thriving craft beer, food, coffee, music, and entertainment scene.
Besides its scenery and entertainment landscape, Tennessee is also popular for its low cost of living. The Bureau of Economic Analysis estimates that the cost of living in Tennessee is approximately 10.1% lower than the average in the US.
Why is housing cost low across Tennessee?
Where the state shines, however, is in the cost of housing. The median cost of housing in Tennessee is almost 30% less than the national average. This attractive rate is due to:
- Majority of the state being in rural areas
- Lack of a state income tax
- Low property taxes. As a renter, this means your landlord may rent their property out at a lower price.
What’s the cost of housing in Tennessee?
Housing costs in Tennessee vary depending on the size of the house and the city it is located in. The median home value in Tennessee is $191,681. If you’re planning to rent, expect to pay an average of $850 per month, which is $300 below the national average of $1150 per month.
If you’re undecided on where to plant some roots, here are some of the most affordable places to live in Tennessee.
1. La Follette
LaFollette is a small city with a population of about 7,456 people. It is located in Campbell County and is one of the cheapest cities to live in Tennessee.
The median income here is $17,613 and the average rent per month is $914. Renters pay about $420 for a studio apartment, $470 for a one-bedroom apartment, $620 for a two-bedroom apartment, $810 for a three-bedroom apartment, and $1,050 for a four-bedroom apartment.
2. Paris
Paris, located in Henry County, is a small city in Tennessee with about 10,156 inhabitants. The city is second on the list of the cheapest places to live in Tennessee.
The median income in the city is $20,285 and the average rent per month is $858. Renters pay about $457 for a studio apartment, $484 for a one-bedroom apartment, $619 for two bedrooms, $849 for a three-bedroom apartment, and $939 for a four-bedroom apartment.
3. Memphis
With 651,073 inhabitants, Memphis is the second-most populous city in Tennessee and the 28th largest in the country. It is situated along the Mississippi River and is culturally and historically significant. It also boasts some great BBQ and entertainment options, as well. Compared to other U.S. cities, the cost of living in Memphis is reasonable. The median income in the city is $24,836 and the average rent for a one-bedroom apartment is $891 per month.
4. Rockwood
Rockwood is a city located in Roane County, in the greater Knoxville Metro Region, with about 6,000 people.
The median income in the city is $17,278 and the average rent per month is $737. Renters pay about $500 for a studio apartment, $560 for a one-bedroom apartment, $750 for a two-bedroom apartment, $940 for a three-bedroom apartment, and $1,150 for a four-bedroom apartment.
5. Lexington
Popular for its horses, basketball, and bluegrass music, Lexington is the second-largest city in Kentucky. The city has an estimated population of 323,152 people.
The median income in the city is $30,181 and the average rent per month is $1223. Renters pay about $510 for a studio apartment, $650 for a one-bedroom apartment, $790 for a two-bedroom apartment, $1110 for a three-bedroom apartment, and $1,190 for a four-bedroom apartment.
6. Oak Ridge
Oak Ridge is located in Roane and Anderson Counties and is part of the Knoxville Metropolitan Area. The city has a population of about 29,330.
The median income in the city is $29,811 and the average rent per month is $1070. Renters pay about $560 for a studio apartment, $680 for a one-bedroom apartment, $840 for a two-bedroom apartment, $1090 for a three-bedroom apartment, and $1,370 for a four-bedroom apartment.
7. Chattanooga
Chattanooga is located in Hamilton County. It is the state’s fourth-largest city and has an estimated population of 182,799 people.
The median income in the city is $26,207 and the average rent for a one-bedroom apartment is $1,088 per month. Renters pay about $588 for a studio apartment, $701 for a one-bedroom apartment, $856 for a two-bedroom apartment, $1,111 for a three-bedroom apartment, and $1,361 for a four-bedroom apartment.
8. Clarksville
Clarksville is situated in Montgomery County. It is the fifth-largest city in Tennessee and has a population of about 158,146 people.
The median income in the city is $26,207 and the average rent per month is $1997. Renters pay about $610 for a studio apartment, $727 for a one-bedroom apartment, $910 for a two-bedroom apartment, $1,280 for a three-bedroom apartment, and $1,473 for a four-bedroom apartment.
Ready to look for your next place? Search thousands of apartments across Tennessee on Zumper and find your new home.
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