7 Most Affordable Places to Live in Tennessee

Tennessee is a naturally beautiful state filled with picturesque landscapes, scenic drives, and plenty of opportunities for outdoor recreation—all reasons the state is becoming a huge destination for tourism. It is also becoming a hot destination of new residents exiting other states. Tennessee’s wide-ranging affordability is the main draw for many of these people. Here, we will outline the top seven most affordable cities in this highly affordable state, covering everything from housing costs to crime rates.

There are some factors to consider before moving to Tennessee. Take a look at the facts below:

1. Taxes: Tennessee has no income tax of any kind. However, it has one of the highest sales tax rates in the country. Many municipalities also levy their own sales taxes that combine with the state sales tax. The average combined sales tax in the state is 9.55%.
2. Climate: Generally, Tennessee has mild winters and hot, humid summers. Rainfall is fairly even across the state at about 51 inches per year, while temperatures vary by region with the mountainous east getting the coolest temperatures, and the flat floodplains in the west bringing the most intense heat and humidity.

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Here are 10 cities with the most affordable cost of living in Tennessee 

1. Smyrna

Smyrna is a pleasant suburb of the Nashville Metropolitan Area. Due to its fast population growth, it benefits from all of Nashville’s best qualities, but without as much traffic congestions or nearly as many partying tourists (who fill the streets of the state’s capital at night). 

A. Median Household Income, Median Home Value, Annual Spend for Homeowners, and Annual Spend for Renters:

B. Employment Prospects

• The unemployment rate in Smyrna is 3.0% (June 2024), equal to the Tennessee rate of 3.0% and below the national rate of 4.1%.
• The poverty rate is 11.80%, below the Tennessee rate of 14% and slightly above the national rate of 11.1%.
• The major employers in Smyrna include Nissan, Asurion, and Taylor Farms.
• The Chattanooga area has an average commute time of 26.3 minutes.

C. Healthcare 

The main hospital in Smyrna is the Tristar Health Center, but the city’s immediate proximity to Nashville provides quick access to some of the best healthcare centers in the entire country.

D. Education

• The high school graduation rate in Smyrna is 90.10%, almost equal to the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The percentage of adults over 25 with a college degree was 27.60%, lower than the national average of 34.3% and the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Smyrna is a small suburban town very closely linked to Nashville. It is close to the city but also close to the surrounding countryside. It has several attractions, including several local festivals and the Nashville Superspeedway.

These cities provide unique attractions and affordable living options, making Tennessee an excellent choice for those seeking a blend of affordability, community, and a happy lifestyle. From Smyrna’s suburban lifestyle to Memphis’s dense urban life, these seven cities capture the multitude of life in Tennessee in a way that is financially accessible to nearly everyone.

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2. Chattanooga

Chattanooga is the fourth-biggest city in Tennessee, striking an amazing balance between urban and rural life. With a beautiful and varied urban core surrounded by affordable suburbs and quaint rural areas, Chattanooga has something for just about every type of person. Most iconically represented by the famous Walking Bridge downtown, the city is filled with similar attractions, making it a top destination for tourists.

A. Median Household Income, Median Home Value, Annual Spend for Homeowners, and Annual Spend for Renters:

B. Employment Prospects

• The unemployment rate in Chattanooga is 3.6% (June 2024), just above the overall Tennessee rate of 3.0% and below the national rate of 4.1%.
• The poverty rate is 16.90%, above the Tennessee rate of 14% and the national 11.1%.
• Erlanger Health System, BlueCross BlueShield of Tennessee, Hamilton County Schools, and the Tennessee Valley Authority are the major employers in Chattanooga.
• The Chattanooga area has an average commute time of 19.2 minutes.

C. Healthcare 

Chattanooga’s two major healthcare providers are Erlanger and CHI Memorial, and there are dozens of smaller locations spread throughout the city.

D. Education

• The high school graduation rate in Chattanooga is 89%, almost equal to the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The population of adults over 25 with a college degree was 34.10%, about the same as the national average of 34.3% but above the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Chattanooga is a fast-growing city on the very southern edge of Tennessee. It is regionally well known for its many tourist attractions and sightseeing areas like the Walking Bridge, Incline Railway, and Rock City. It has also become a major stomping ground in the past ten years for outdoor enthusiasts, especially rock climbers, with a wide range of climbing spots and training centers to choose from. With a burgeoning downtown, sprawling suburbs, and beautiful surrounding countryside in the foothills of the Appalachians, Chattanooga has a little bit for everyone.

3. Knoxville

Knoxville is one of the biggest cities in the state, with 198,162 people. Situated in the northeast, it is closely connected to both North Carolina and Kentucky and has quick access to Chattanooga and North Georgia to the south by way of I-75. Known for being a big college town, sports fans will be right at home, as Knoxville is home to one of the nation’s top college football teams. The city has a large nightlife scene and a thriving downtown, yet strikes a balance with its close connections to the surrounding Great Smoky Mountains National Park, the most visited national park in the U.S.

A. Median Household Income, Median Home Value, Annual Spend for Homeowners, and Annual Spend for Renters:

B. Employment Prospects

• The unemployment rate in Knoxville is 3.4% (June 2024), just above the overall Tennessee rate of 3.0% and below the national rate of 4.1%.
• The poverty rate is 20.70%, above the Tennessee rate of 14% and the national 11.1%.
• The major employers in Knoxville include the U.S. Department of Energy, Covenant Health, and the University of Tennessee, which is based in the city.
• The Cleveland area has an average commute time of 20.5 minutes.

C. Healthcare

Knoxville has three major medical centers: The University of Tennessee Medical Center, Parkwest Medical Center, and Fort Sanders Regional Medical Center.

D. Education

• The high school graduation rate in Cleveland is 90.20%, just above the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The population of adults over 25 with a college degree was 33.10%, below the national average of 34.3% but above the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Knoxville is one of the biggest cities in Tennessee. Centered in the mountainous eastern region of the state, it offers a unique panoramic view of the surrounding Great Smoky Mountains National Park and several other smaller parks. The downtown area is defined by the University of Tennessee Campus, which is the biggest.

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4. Cleveland

Cleveland is a small town growing explosively, with new restaurants, shopping centers, and recreational spots popping up seemingly every day. Located just outside of Chattanooga and with quick access to North Georgia to the south and Knoxville to the north, Cleveland is a burgeoning commercial area surrounded by gorgeous natural areas like Ocoee State Park.

A. Median Household Income, Median Home Value, Annual Spend for Homeowners, and Annual Spend for Renters:

B. Employment Prospects

• The unemployment rate in Cleveland is 3.9% (June 2024), just above the overall Tennessee rate of 3.0% and below the national rate of 4.1%.
• The poverty rate is 17.30%, above the Tennessee rate of 14% and the national 11.1%.
• The major employers in Cleveland include the Whirlpool Corporation, Bradley County School System, Peyton’s Southeastern, and Tennova Health.
• The Cleveland area has an average commute time of 21.2 minutes.

C. Healthcare 

Cleveland has a rather small healthcare system centered on the Tennova Health Center, but the city is extremely close to Chattanooga’s more extensive healthcare system, which is where many people go for their medical needs.

D. Education

• The high school graduation rate in Cleveland is 87.70%, just below the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The population of adults over 25 with a college degree was 30.80%, below the national average of 34.3% and just above the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Cleveland is a small town that is changing very fast. With its proximity to Chattanooga and its location as a waystation to Knoxville and south into Georgia, economic growth is bringing a seemingly never-ending growth in activities, restaurants, and stores. The surrounding countryside remains largely the same, and you are never far from truly gorgeous natural scenery like that found in Hiwassee/Ocoee State Park.

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5. Clarksville

Clarksville is one of the larger cities in Tennessee, ranking fifth in size just after Chattanooga. Situated just on the Kentucky-Tennessee Line and far from any other dense urban area, Clarksville is known for its close contact with nature and many hiking trails and sightseeing areas. For good reason, it’s currently the fastest-growing city in the state, making it a welcoming home to newcomers.

A. Median Household Income, Median Home Value, Annual Spend for Homeowners, and Annual Spend for Renters:

B. Employment Prospects

• The unemployment rate in Clarksville is 4.30% (June 2024), just above the overall Tennessee rate of 3.0% and the national rate of 4.10%.
• The poverty rate is 12.90%, below the Tennessee rate of 14% and slightly above the national 11.1%.
• The major employers in Clarksville include Del-Jen, Austin Peay State University, and Gateway Health.
• The Clarksville area has an average commute time of 25.7 minutes.

C. Healthcare 

Clarksville has a wide range of small—to medium-sized healthcare centers, but the biggest is the Tennova Health Center in the northeast corner of the city.

D. Education

• The high school graduation rate in Portland is 94.30%, higher than the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The population of adults over 25 with a college degree was 28.90%, below the national average of 34.3% and the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Clarksville is the fifth-biggest city in the state, so while it can hardly be called a “big city,” it still offers a wide range of activities for residents while maintaining many of the slower, small-town qualities that many people enjoy. The surrounding area has several parks and natural areas, and one of the biggest attractions is Clarksville Greenway.

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6. Oak Ridge

Oak Ridge is a small town with a truly unique background. Created as a national laboratory during the race to develop a nuclear bomb during World War Two, Oak Ridge is still one of America’s major centers for scientific research. So, while it is a small town in a very rural state, Oak Ridge has a clearly distinct vibe and a lot of good jobs to support the local economy.

A. Median Household Income, Median Home Value, Annual Spend for Homeowners, and Annual Spend for Renters:

B. Employment Prospects

• The unemployment rate in Oak Ridge is 3.4% (June 2024), just above the overall Tennessee rate of 3.0% and the national rate of 4.10%.
• The poverty rate is 14.7%, slightly higher than the Tennessee rate of 14% and the national 11.1%.
• The major employers in Oak Ridge include Y-12 National Security Complex, Methodist Medical Center, Oak Ridge National Laboratory, United Cleanup Oak Ridge (UCOR), and the combined Oak Ridge Associated Universities.
• The Oak Ridge area has an average commute time of 23.4 minutes.

C. Healthcare 

Methodist Medical Center, one of the city’s biggest employers, dominates Oak Ridge’s medical system.

D. Education 

• While Oak Ridge isn’t a large university town, its intense concentration on scientific research makes it a center for public and private research in the country. Oak Ridge Institute for Research leads education, while locals can acquire higher education at the Roane State Community College, Oak Ridge Campus.
• The high school graduation rate in Oak Ridge is 92.50%, higher than the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The population of adults over 25 with a college degree was 37.90%, above the national average of 34.3% and the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Oak Ridge is historically and contemporaneously significant because of its importance to scientific research in the United States. Created as a national testing site for atomic research during World War Two, Oak Ridge has, in the decades since, become a full-fledged town of its own with a much wider array of research initiatives and a broader economy that has sprung up around it.

7. Memphis

Memphis, located on the far southwestern edge of the state, is about as affordable a city as you can find anywhere in the U.S. With world-famous music and food, cheap living, and proximity to the amenities of 3 different states, Memphis is certainly an underrated pick for homebuyers and travelers.

A. Median household income, median home value, annual spend for Homeowners, and annual spend for renters:

B. Employment Prospects

• The unemployment rate in Memphis is 4.6% (June 2024), above the overall Tennessee rate of 3.0% and the national rate of 4.10%.
• The poverty rate is 23.6%, significantly higher than the Tennessee rate of 14% and the national 11.1%.
• The major employers in Memphis include FedEx, AutoZone, First Horizon National, St. Jude Children’s Research Hospital, and Methodist Le Bonheur Healthcare.
• The Memphis area has an average commute time of 21.6 minutes.

C. Healthcare

Memphis has an exceptionally large healthcare system, with the globally renowned St. Jude’s Children’s Research Hospital leading the way. The city also has two dueling hospital systems: the Methodist Hospital and Baptist Memorial Hospital.

D. Education

• Memphis is home to the University of Memphis, the private liberal arts Rhodes College, and the HBCU Lemoyne-Owen College.
• The high school graduation rate in Memphis is 87.20%, just below the U.S. national average of 89.10% and the Tennessee rate of 89.30%.
• The population of adults over 25 with a college degree was 27.90%, just below the national average of 34.3% and the Tennessee average of 29.70%.

E. Unique Attributes and Lifestyle

Memphis is world-famous as one of the most important origins of many of America’s most significant music genres, including rock, soul, and the blues. Iconic Beale Street is home to many local music venues, historic sites, and some of the best fried chicken and barbeque restaurants in the country.