Best Affordable Places to Live in Tennessee in 2026
(Last Updated – 08/2026)
From outdoor attractions like the Great Smoky Mountains National Park to some of our country’s best music scenes, Tennessee presents plenty of good reasons for people to take up residence there. What’s more, the state offers some savings — homeowners pay an average property tax rate of just 0.52%. Tennessee’s cost of living is lower than the national average and lower than some of its neighboring states, including Georgia.
Whether you’re a recent grad just starting out, a young family, a retiree, or someone who wants to be close to natural beauty (don’t forget your kayak), Tennessee will likely delight you with an array of affordable places to call home.
This guide shares some top picks to suit people of different ages and life stages.
Best Places to Live in Tennessee
Tennessee can be a wonderful and affordable place to live. Some of the reasons why it’s popular: its natural beauty, welcoming climate, ample career and educational opportunities, and plenty of arts and cultural activities. In addition, the state offers a low cost of living and no state income tax.
Some of the state’s popular places include Nashville, known for its country music scene, nightlife, and 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.
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Best Affordable Places to Live in Tennessee
It’s official: Tennessee has been “discovered.” Since we first reported our Best Affordable Places list, home values ballooned here, especially in cities like Nashville and Knoxville, and are now still increasing, though at a slower pace. While you’ll no longer find many home value-to-income ratios in the 1s and 2s, there are still cities and towns that hold out the promise of affordable houses and a low cost of living. The three locations below offer a money-smart lifestyle and many amenities.
1. Memphis
Photo credit: iStock/Sean Pavone
Blues fans and music lovers alike will appreciate the flourishing music scene: You’ll find Beale Street, Sun Studios, and Elvis’s Graceland here. Though the average property tax rate is higher than much of the rest of Tennessee, 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.
Population: 609,647
Median Household Income: $51,736
Cost of Living: 87% of the national average
Average Rent Price: $1,250
Home Value-to-Income Ratio: 2.85
2. Jackson
Photo credit: iStock/BOB WESTON
Located around 70 miles outside 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.
Population: 69,339
Median Household Income: $53,032
Cost of Living: 84% of the national average
Average Rent Price: $1,450
Home Value-to-Income Ratio: 4.29
3. Chattanooga
Photo credit: iStock/Kruck20
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.
Population: 194,144
Median Household Income: $64,523
Cost of Living: 96% of the national average
Average Rent Price: $1,590
Home Value-to-Income Ratio: 5.01
Recommended: Different Types of Mortgage Loans
Best Places to Live in Tennessee for Families
If you have kids now or if they’re in your future, there are an array of great places to live in Tennessee for families. Here, three top-notch locations for raising children.
1. 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. While the town has one of the higher property tax rates in the state, the low home value-to-income ratio helps take the sting out.
Population: 40,001
Median Household Income: $149,920
Cost of Living: 90% of the national average
Average Rent Price: $2,800
Home Value-to-Income Ratio: 3.27
2. Collierville
Photo credit: Wikimedia Commons/Thomas R Machnitzki, Creative Commons Attribution 3.0 Unported
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 can 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.
Population: 51,909
Median Household Income: $138,598
Cost of Living: 92% of the national average
Average Rent Price: $2,595
Home Value-to-Income Ratio: 3.69
3. Farragut
Photo credit: Flickr/www78, Creative Commons Attribution-NonCommercial-ShareAlike 2.0 Generic
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 the town’s proximity to the city, many residents can commute to work. Ready to shop? Learn tips for qualifying for a mortgage.
Population: 25,121
Median Household Income: $142,093
Cost of Living: 89% of the national average
Average Rent Price: $2,650
Home Value-to-Income Ratio: 4.91
💡 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 specific things in a town: a robust job market, reasonable cost of living, and lots of entertainment and nightlife options. Here, learn more about three of the best places to live in Tennessee for young adults.
1. Memphis
Photo credit: iStock/Sean Pavone
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 more than 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.
Population: 609,647
Median Household Income: $51,736
Cost of Living: 87% of the national average
Average Rent Price: $1,250
Home Value-to-Income Ratio: 2.85
2. Chattanooga
Photo credit: iStock/Kruck20
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 Ross’s landing, an innovative waterfront park and outdoor performance venue. While the home price-to-income ratio has been rising, there are still deals to be found.
Population: 194,144
Median Household Income: $64,523
Cost of Living: 96% of the national average
Average Rent Price: $1,590
Home Value-to-Income Ratio: 5.01
3. Nashville
Photo credit: iStock/Jonathan Ross
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 now $436,519 – that and the rising home value-to-income ratio indicates that first-time homebuyers may need to save a bit longer to live here.
Population: 721,074
Median Household Income: $77,371
Cost of Living: 106% of the national average
Average Rent Price: $2,200
Home Value-to-Income Ratio: 5.64
Best Places to Live in Tennessee for Retirees
For those looking for the best places to live in Tennessee as a retiree, keep this list handy. It contains three towns that have access to nature and to 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 16% of the population, with typical home values around $510K. 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.
Population: 51,909
Median Household Income: $138,598
Cost of Living: 92% of the national average
Average Rent Price: $2,595
Home Value-to-Income Ratio: 3.69
2. Paris
Photo credit: Flickr/Kathleen Tyler Conklin, Creative Commons Attribution 2.0 Generic
A small town located in the northern part of Tennessee, Paris has some of the least expensive housing options in the state, with average home values at $215,136, and average rents of $995. 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 may appreciate the easy access to Henry County Medical Center.
Population: 10,468
Median Household Income: $41,012
Cost of Living: 78% of the national average
Median Rent Price: $995
Home Value-to-Income Ratio: 5.24
3. Kingsport
Photo credit: iStock/DenisTangneyJr
With more than 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’s 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.
Population: 57,530
Median Household Income: $52,490
Cost of Living: 85% of the national average
Average Rent Price: $1,350
Home Value-to-Income Ratio: 4.90
Recommended: Cost of Living by State
Best Places to Live in Tennessee Near the Water
Granted, there’s no oceanfront property in the Volunteer State, 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 shore or paddling down a river, there are plenty of options available in the state.
1. Ashland City
Photo credit: Flickr/SeeMidTN.com, Creative Commons Attribution-NonCommercial 2.0 Generic
Ashland City is a small town situated outside Nashville, near the Cumberland and Harpeth rivers. Residents can enjoy the nearby Cheatham Lake recreational area with activities that include hiking, fishing, and swimming. There’s also rock climbing at Sydney’s Bluff, adding to the area’s nature-focused activities.
Population: 5,650
Median Household Income: $79,231
Cost of Living: 89% of the national average
Average Rent Price: $1,740
Home Value-to-Income Ratio: 4.46
2. Waverly
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 $242,225, and the cost of living is just 80% of the national average.
Population: 4,302
Median Household Income: $43,773
Cost of Living: 80% of the national average
Average Rent Price: $1,700
Home Value-to-Income Ratio: 5.5
3. Kingston Springs
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 $476,390.
Population: 2,791
Median Household Income: $103,250
Cost of Living: 103% of the national average
Average Rent Price: $1,850
Home Value-to-Income Ratio: 4.61
The Takeaway
Tennessee offers a wealth of affordable places to live, whether you’re just starting out after graduation, raising a family, retiring, or looking for a place to put down roots near the water. If you’re 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.
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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.
What is the best part of living in Tennessee?
Some of the best parts of living in Tennessee include the plentitude of outdoor activities, the cultural attractions, and the music scene in multiple cities. In addition, the mild climate and affordable cost of living can be very appealing.
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