Tennessee cost of living
Moving to a new state can be an exciting chance for a fresh start, but it can be challenging in many ways. Doing your research to figure out the practical things will give you a chance to step back and enjoy new opportunities, new friendships and new adventures.
Whether you're relocating to Tennessee for a job, a change of scenery or any other reason, we’ve got details on the cost of living in the state to help you with a smooth transition.
The median rent in Tennessee is $1,578.24, versus the national median rent of $1,529.01.
Jump to insightResidents in Tennessee spend $270.45 weekly on food at home and $116.31 on food out.
Jump to insightAs of publishing, the average price per gallon of regular gas is $3.04 in Tennessee.
Jump to insightRecent data shows that employees in Tennessee pay $1,798 annually for employee-sponsored health insurance coverage.
Jump to insightHousing costs in Tennessee
According to recent data from Zillow, the median rent in Tennessee is $1,578.24, while the national median rent is $1,529.01.
Data from the U.S. Census Bureau shows rent prices in Tennessee broken down by home size. As of publishing, one-bedroom apartments in Tennessee had a median cost of $972 per month, and the two-bedroom median cost was $1,054 per month. Three- and four-bedroom homes had median costs of $1,217 and $1,420, respectively.
As of publishing, the median home price in Tennessee is $387,000, according to Redfin. The U.S. median home price is $436,000.
The median home price in the Nashville metro area was $404,300 in the first quarter of 2024, according to the National Association of Realtors (NAR). The same data showed the median home price in the Memphis metro area was $272,400.
Tennessee ranks No. 37 for highest effective property tax rates in the nation, according to the most recent Tax Foundation data, at 0.67%.
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Food costs in Tennessee
According to recent census data, the average spent on food to prepare at home each week in Tennessee is $270.45, compared with the U.S. average of $270.21 at the time. Tennessee residents spend an average of $116.31 weekly on food prepared outside the home, compared with the U.S. average of $109.21.
Transportation costs in Tennessee
According to recent data from AAA, the average price per gallon of regular gas in Tennessee is $3.04, compared with the U.S. average of $3.46.
The most recent National Association of Insurance Commissioners data shows that the average auto insurance premium (liability, collision and comprehensive coverage combined) in Tennessee is $1,000.70, versus the national average of $1,189.50.
Public transportation costs
Public transit opportunities depend on where you live in Tennessee. Nashville ranked No. 35 in our 2024 ranking of cities with the best public transit. The average fare was $1.19 in 2022.
Health care costs in Tennessee
The most recent KFF data shows that, on average, employer-sponsored health insurance cost Tennessee employees $1,798 annually, with employers covering the remaining $5,384 of the $7,182 total cost.
Nationwide, the average employee contribution was $1,637 out of a total premium of $7,590.
Utility costs in Tennessee
According to the most recent data from the Energy Information Administration, the average monthly electric bill in Tennessee is $145.49, versus $135.25 countrywide.
Recent EIA data also shows that natural gas in Tennessee costs $9.40 per thousand cubic feet, compared with $14.93 nationally (as of April 2024).
FAQ
How does the cost of living in Tennessee compare with the national average?
Overall, Tennessee has a lower-than-average cost of living, according to our 2023 survey.
How much do I need to make to live in Nashville?
According to a 2024 ConsumerAffairs study, a single adult needs a salary of $74,140.24 to live comfortably in Tennessee’s most expensive city.
What are the most affordable cities in Tennessee?
Knoxville and Chattanooga took the top two spots in the entire U.S. in our 2024 list of cheapest major cities to live in.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Zillow, "Housing Data." Accessed May 14, 2024.
- Redfin, "Redfin Data Center." Accessed May 14, 2024.
- Tax Foundation, "Where Do People Pay the Most in Property Taxes?" Accessed May 14, 2024.
- United States Census Bureau, "Week 63 Household Pulse Survey: October 18 - October 30." Accessed May 14, 2024.
- AAA Gas Prices, "State Gas Price Averages." Accessed June 14, 2024.
- National Association of Insurance Commissioners, "2020/2021 Auto Insurance Database Report." Accessed May 14, 2024.
- KFF, "Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance." Accessed May 14, 2024.
- U.S. Energy Information Administration, "2022 Average Monthly Bill- Residential." Accessed May 14, 2024.
