Cheapest Places to Live in Tennessee

Access hyperlocal data to help you make a confident and informed decision.

Tennessee, with its vibrant music scene, rich history, and diverse landscapes, offers a range of living experiences. Landmarks such as Graceland, the Great Smoky Mountains, and the Grand Ole Opry highlight the state's attractions. The state's economy is robust and diverse, driven by sectors such as healthcare, manufacturing, and tourism. Tennessee's tax structure is quite favorable, with no state income tax and relatively low property taxes, enhancing the overall affordability for residents. Despite recent inflation and rising food costs, Tennessee remains one of the more affordable states in the southeastern region, especially in its smaller towns and rural areas. The combination of a diverse economy and favorable tax policies makes Tennessee an attractive place for those seeking affordability and quality of life.

Affordable living in Tennessee can often be found in smaller towns and suburban areas where housing costs and everyday expenses are lower. These regions provide a more manageable cost of living, which is essential for maintaining financial stability. Affordability is a crucial factor in livability, as it allows residents to enjoy a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Tennessee include lower housing demand in less populated areas, supportive local economic policies, and efficient public services. Using AI-assisted city-level cost of living estimates, supported by U.S. Census housing data and regional economic modeling, helps identify these affordable regions and gives potential residents a practical way to compare affordability from one city to the next. In a state known for its cultural richness and economic opportunities, finding affordable living options enhances the overall living experience.

La Follette Population: 6,970 9% cheaper than Tennessee average

Med. Home Value: $156,464 Med. Rent: $1,012 Med. Household Inc.: $53,392

With a cost of living index that is 9% cheaper than the state average, La Follette is the cheapest place to live in Tennessee. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, La Follette provides an inviting and cost-effective environment to call home.

Humboldt Population: 8,431 8% cheaper than Tennessee average

Med. Home Value: $154,985 Med. Rent: $986 Med. Household Inc.: $47,878

The second most affordable city in Tennessee is Humboldt and stands out for its cost-effective lifestyle. With an overall cost of living that is 8% cheaper than the Tennessee average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.

Newport Population: 7,093 8% cheaper than Tennessee average

Med. Home Value: $164,804 Med. Rent: $994 Med. Household Inc.: $49,040

Newport lands in the #3 spot for the cheapest cities to live in Tennessee, with a cost of living that is 8% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.

Harriman Population: 6,336 8% cheaper than Tennessee average

Med. Home Value: $190,818 Med. Rent: $813 Med. Household Inc.: $55,185

The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Harriman offers a picturesque and affordable living environment, with a cost of living that is 8% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .

Rockwood Population: 5,618 8% cheaper than Tennessee average

Med. Home Value: $174,280 Med. Rent: $989 Med. Household Inc.: $52,673

For those wanting to live well on a budget, Rockwood is ideal, with a cost of living that is 8% cheaper than the state average. Reasonable housing prices (compared to the Tennessee average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.

Brownsville Population: 9,877 8% cheaper than Tennessee average

Med. Home Value: $165,467 Med. Rent: $978 Med. Household Inc.: $51,749

Brownsville comes in at #6 on our list of the cheapest cities in Tennessee and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 8% cheaper than Tennessee. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.

Dayton Population: 7,510 8% cheaper than Tennessee average

Med. Home Value: $174,697 Med. Rent: $953 Med. Household Inc.: $52,099

With its cost-effective lifestyle, Dayton is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.

McMinnville Population: 13,998 8% cheaper than Tennessee average

Med. Home Value: $185,557 Med. Rent: $951 Med. Household Inc.: $53,957

A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. McMinnville fits that mold and has a cost of living that is 8% cheaper than Tennessee.

Ripley Population: 8,025 7% cheaper than Tennessee average

Med. Home Value: $164,595 Med. Rent: $1,037 Med. Household Inc.: $52,014

Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Ripley is one of the most affordable cities in Tennessee, and has a cost of living that is 7% cheaper than the state average.

Henderson Population: 6,498 7% cheaper than Tennessee average

Med. Home Value: $171,751 Med. Rent: $1,056 Med. Household Inc.: $64,634

With a cost of living that is 7% cheaper than Tennessee, Henderson comes in at #10 on our list of the cheapest places to live in Tennessee. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Tennessee

Rank	Location	Population	COL Index	Med. Home Value	Med. Household Inc.
1	La Follette	6,970	84	$156,464	$53,392
2	Humboldt	8,431	84	$154,985	$47,878
3	Newport	7,093	85	$164,804	$49,040
4	Harriman	6,336	85	$190,818	$55,185
5	Rockwood	5,618	85	$174,280	$52,673
6	Brownsville	9,877	85	$165,467	$51,749
7	Dayton	7,510	85	$174,697	$52,099
8	McMinnville	13,998	85	$185,557	$53,957
9	Ripley	8,025	85	$164,595	$52,014
10	Henderson	6,498	86	$171,751	$64,634
11	Milan	7,870	86	$178,496	$65,622
12	McKenzie	5,709	86	$176,949	$55,037
13	Bolivar	5,108	86	$177,643	$48,674
14	Paris	10,260	86	$180,890	$49,618
15	Union City	10,733	86	$194,807	$46,189
16	Pulaski	7,908	87	$192,668	$57,549
17	Sweetwater	6,125	87	$215,042	$56,552
18	Lawrenceburg	11,258	87	$200,199	$47,606
19	Savannah	7,206	87	$204,450	$55,702
20	Bloomingdale	9,688	87	$197,456	$65,061
21	Dunlap	5,355	88	$211,812	$56,050
22	Erwin	6,103	88	$223,157	$52,560
23	Covington	9,113	88	$207,504	$49,998
24	Fayetteville	7,292	88	$235,267	$63,755
25	Elizabethton	14,021	88	$220,205	$56,817
26	Lafayette	5,393	89	$204,913	$48,815
27	Loudon	6,040	89	$208,356	$69,275
28	Morristown	30,738	89	$217,105	$48,963
29	Jefferson City	8,524	89	$236,582	$63,860
30	Lexington	8,145	89	$224,502	$48,684
31	Sparta	5,117	89	$251,048	$48,620
32	Hartsville (Trousdale County)	8,201	89	$232,675	$70,282
33	Dyersburg	16,887	90	$233,408	$61,410
34	Lewisburg	12,475	90	$218,062	$63,361
35	Madisonville	5,104	90	$251,114	$68,358
36	Martin	10,847	90	$241,308	$48,458
37	Millington	11,024	90	$211,180	$76,096
38	Winchester	9,014	91	$273,950	$70,871
39	Memphis	674,455	91	$192,060	$61,386
40	Greeneville	15,421	91	$271,645	$60,514
41	Bristol	27,756	91	$249,793	$61,633
42	East Ridge	21,728	91	$237,983	$70,911
43	Eagleton Village	6,009	92	$237,992	$83,007
44	Manchester	11,241	92	$248,811	$72,556
45	Church Hill	6,857	92	$258,867	$86,884
46	Shelbyville	22,648	92	$245,523	$65,045
47	Alcoa	10,194	92	$253,959	$71,221
48	Kingsport	55,254	92	$270,875	$61,471
49	Lenoir City	9,420	92	$263,382	$69,054
50	Knoxville	193,504	92	$251,575	$62,453

Methodology

To formulate the list of the cheapest places to live in Tennessee, a city-level cost of living model was used with a national average baseline of 100. This framework is designed to provide a practical comparison of how far your dollar may go across different urban areas. Housing estimates incorporate the latest available U.S. Census home price and rental data, while all other values are generated using AI-assisted economic models based on expected everyday expenses, regional pricing trends, climate, transportation patterns, and local economic conditions. The overall index is weighted across key spending categories, including housing (30%), groceries (16%), transportation (12%), healthcare (10%), utilities (8%), lifestyle and entertainment (8%), household expenses (8%), and education and childcare (8%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.