| Index | Memphis | Tennessee | National |
| Cost of living | 91 | 92 | 100 |
| Groceries | 101 | 98 | 100 |
| Health care | 96 | 97 | 100 |
| Housing | 69 | 80 | 100 |
| Transportation | 102 | 97 | 100 |
| Utilities | 98 | 98 | 100 |
| Lifestyle & Entertainment | 102 | 97 | 100 |
| Household Items | 98 | 98 | 100 |
| Education & Childcare | 104 | 97 | 100 |
Are you thinking about relocating, but curious about the potential cost of living in Memphis? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Memphis stands at 91, making it 9% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.
The cost of living in Memphis closely mirrors the national average in comparison to other cities nationwide. Essential items such as groceries, houshold expenses, health care and utilities are priced at a level consistent with similar urban areas. This means that residents of Memphis can anticipate that their daily expenses will remain reasonably in line with those of an average city, contributing to a manageable cost of living.
When it comes to knowing a city, its residents are the experts. We conducted a survey with 52 locals to understand their opinions on the cost of living in Memphis. The results indicated that 38% found it reasonably priced with decreasing prices of goods and services, while 62% viewed it as quite expensive, with increasing prices.
Is Memphis an affordable place to live? That's a valid question to ask when you're thinking about moving to a new city. After all, how much it costs to live somewhere can be a huge factor in your decision. Affordability can be broken down into 3 common categories. The cost of living index (we talked about it earlier), housing expenses and income levels all play a big role in figuring out if a place is affordable. For instance, in Memphis, the median home price is 41.2% lower than what most folks pay across the country, and monthly rent prices are 6% lower than the usual rates. Income levels in Memphis come in at $61,386, which is 24.5% lower than the national average.
Healthcare: Healthcare costs and insurance premiums can undergo substantial fluctuations based on the city or state of residence. Elements such as the availability of healthcare facilities, out-of-pocket costs for medical consultations, dental expenses, prescription medication charges and specialized medical care fees all contribute to variations in the cost of living. In Memphis, healthcare costs are 3.8% lower than the national average.
Transportation: In situations where public transportation is limited or nonexistent, local residents may be required to own and maintain their own vehicles, contributing to an elevated cost of living. Monthly expenditures may encompass fuel costs, insurance premiums, routine vehicle upkeep and possibly lease or financing payments. In Memphis, the transportation index is 1.5% higher than the national average.
Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.
The Memphis cost of living data displayed above uses a U.S. average baseline of 100 to provide a practical way to compare living expenses across cities. Housing estimates incorporate U.S. Census home price and rental data, while all other values are generated using AI-assisted models based on everyday expense expectations, regional pricing trends, climate, transportation patterns, and local economic conditions. These values are designed for directional city-to-city comparisons.
| Cost of living index | |
| Groceries index | |
| Health care index | |
| Housing index | |
| Transportation index | |
| Utilities index | |
| Lifestyle index | |
| Household index | |
| Educare index |
| Median Income | Per Year | Per Month | Max Budget (28% DTI) | Max Budget (36% DTI) |
| Owners | $89,676 | $7,473 | $2,092 | $2,691 |
| Renters | $45,420 | $3,785 | $1,060 | $1,363 |
| State | General Sales Tax | With Max Surtax |
| Tennessee | 7% | 9.75% |
| State | Income Tax (Low) | Income Tax (High) |
| Tennessee | 0% | 0% |
| City | Population | Cost of Living Index | National Avg. |
| Sunset, AR | 239 | 82 | 17.8% |
| West Memphis, AR | 25,245 | 87 | 13.4% |
| Edmondson, AR | 413 | 88 | 11.7% |
| Walls, MS | 1,451 | 87 | 13.2% |
| Jericho, AR | 70 | 92 | 7.7% |
| Memphis, TN | 674,455 | 91 | 9.1% |
| City | Population | Cost of Living Index | National Avg. |
| Portland, OR | 675,307 | 139 | 38.8% |
| Oklahoma City, OK | 671,652 | 94 | 5.8% |
| Las Vegas, NV | 662,341 | 118 | 17.6% |
| Nashville, TN | 692,022 | 110 | 10.0% |
| Detroit, MI | 692,044 | 82 | 17.6% |
| Memphis, TN | 674,455 | 91 | 9.1% |
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