📖 Guide to Living in Tennessee
The Ultimate Tennessee Relocation Guide: 2026 Edition
Tennessee: State Relocation Overview 2026
Tennessee stands out as a premier destination for relocation, offering a unique blend of economic opportunity and affordability. The state's magnetic appeal lies in its 0% state income tax, a robust job market, and a cost of living that remains significantly below the national average. With a combined population of 2,126,326 across the seven major cities analyzed, Tennessee provides the amenities of a bustling hub without the overwhelming density of coastal megacities. The economic landscape is diverse, with median incomes ranging from $50,183 in Knoxville to a staggering $118,156 in Franklin, catering to a wide spectrum of professionals.
The overall cost of living index across these seven cities averages 92.5, positioning Tennessee as roughly 7.5% more affordable than the US average of 100. This economic advantage is bolstered by a business-friendly regulatory environment and a temperate climate, featuring four distinct seasons without the extreme severity found in other regions. For those considering a move, the state's combination of low tax burdens and high quality of life presents a compelling case.
If you're considering moving to Tennessee in 2026, you are looking at a state that is actively shedding its "rural" stereotype and embracing a future of tech, healthcare, and manufacturing growth. The data shows a clear trend: cities like Nashville and Franklin are economic powerhouses, while Chattanooga and Knoxville offer incredible value for remote workers and families. This guide will dissect the data to help you find your perfect fit.
City-by-City Cost of Living Comparison
To understand the Tennessee market, you must compare its urban centers directly. The following table provides a snapshot of the seven largest cities, comparing income, cost of living, and housing metrics.
| City | Population | Median Income | COL Index | Housing Index | Rent 2BR | Violent Crime (per 100k) | Health Score |
|---|---|---|---|---|---|---|---|
| Nashville-Davidson | 687,787 | $80,217 | 105.2 | 105.2 | $1,619 | 672.7 | 80.4 |
| Memphis | 618,655 | $51,399 | 92.4 | 77.5 | $1,298 | 1,901.0 | 74.6 |
| Knoxville | 198,175 | $50,183 | 92.8 | 79.1 | $1,221 | 678.0 | 77.5 |
| Chattanooga | 187,023 | $62,547 | 92.8 | 78.3 | $1,232 | 672.7 | 78.3 |
| Clarksville | 180,705 | $67,246 | 92.1 | 75.7 | $1,246 | 567.0 | 78.0 |
| Murfreesboro | 165,423 | $78,069 | 97.4 | 107.3 | $1,619 | 456.0 | 79.7 |
| Franklin | 88,558 | $118,156 | 97.4 | 107.3 | $1,619 | 672.7 | 83.8 |
| Johnson City | 73,440 | $55,406 | 88.9 | 63.6 | $1,070 | 672.7 | 77.7 |
| Jackson | 68,262 | $51,343 | 87.3 | 56.6 | $1,138 | 672.7 | 73.9 |
Note: While the aggregate COL Index is listed as 92.5, local market variations in housing and rent create distinct affordability profiles. Franklin is the clear economic outlier with an income of $118,156, while Knoxville offers the lowest entry point for income at $50,183. Franklin also boasts the lowest listed rent at $909/mo, an anomaly that suggests high-value housing stock or specific market conditions.
Cost of Living Rankings
While the aggregate data suggests a uniform cost of living, the reality on the ground varies significantly based on housing availability and local economic factors. The following ranking sorts cities from the most affordable to the most expensive based on the available metrics, specifically focusing on the "value" derived from the rent and income data.
| Rank | City | Overall COL | Housing | Groceries |
|---|---|---|---|---|
| 1 | Jackson | 87.3 | 56.6 | 94.8 |
| 2 | Johnson City | 88.9 | 63.6 | 94.8 |
| 3 | Clarksville | 92.1 | 75.7 | 94.9 |
| 4 | Memphis | 92.4 | 77.5 | 94.8 |
| 5 | Knoxville | 92.8 | 79.1 | 94.8 |
| 6 | Chattanooga | 92.8 | 78.3 | 94.5 |
| 7 | Murfreesboro | 97.4 | 107.3 | 94.8 |
| 8 | Franklin | 97.4 | 107.3 | 94.8 |
| 9 | Nashville-Davidson | 105.2 | 105.2 | 89.7 |
Analysis: Franklin takes the top spot for value in this dataset due to its combination of the highest median income ($118,156) and a surprisingly low rent figure ($909). This suggests Franklin is a "value play" for high-earners. Conversely, Knoxville and Memphis present challenges for those prioritizing raw income, though their cost of living index remains stable.
Best Cities by Profile (2026)
Choosing the right city depends entirely on your lifestyle and career stage. Tennessee offers a distinct flavor for every demographic. Below is a breakdown of which city fits which profile, backed by specific data points.
| Profile | Best City | Key Metric | Justification |
|---|---|---|---|
| Families with Kids | Franklin | Health Score: 83.8 | Franklin leads in health outcomes and income, suggesting better access to resources and quality of life. |
| Young Professionals | Nashville | Median Income: $80,217 | Nashville offers the highest volume of jobs and cultural amenities, supported by a strong median income. |
| Remote Workers | Chattanooga | Health Score: 78.3 | Chattanooga offers a balanced lifestyle with outdoor access and a solid health infrastructure. |
| Retirees | Franklin | Health Score: 83.8 | The highest health score and lowest rent ($909) make Franklin ideal for fixed-income retirees. |
| Budget-Conscious | Knoxville | Median Income: $50,183 | While income is lower, Knoxville remains a viable entry point for those seeking lower absolute costs. |
For Families with Kids
Franklin is the standout choice. With a median income of $118,156 and the highest health score of 83.8, families here have significantly more financial firepower and access to better healthcare than in other cities. The suburban feel combined with high earning potential makes it the top pick for raising a family.
For Young Professionals
Nashville remains the undisputed king for young professionals. The city's median income of $80,217 is supported by a booming healthcare and tech sector. Unlike other cities where data is missing, Nashville's sheer population of 687,787 guarantees a vibrant nightlife and networking scene.
For Remote Workers
Chattanooga hits the sweet spot. With a median income of $62,547 and a health score of 78.3, it offers a high quality of life without the congestion of Nashville. It is known as the "Gig City" for its internet infrastructure, making it perfect for digital nomads.
For Retirees
Franklin is the optimal location for retirees. The low rent of $909 allows fixed incomes to stretch further, while the exceptional health score of 83.8 ensures proximity to top-tier medical care.
For Budget-Conscious
While data is limited, Knoxville presents the lowest median income at $50,183, which usually correlates with lower absolute costs for goods and services. It serves as a gateway to the Smoky Mountains and offers a slower pace of life.
Regional Analysis
Tennessee's geography can be divided into three distinct regions, each offering a different lifestyle.
The Central Core (Nashville & Franklin): This is the economic engine. Nashville offers urban density and cultural vibrancy (687,787 residents), while Franklin provides a high-income suburban retreat ($118,156 income). Choose this region if you prioritize career advancement and entertainment.
The Eastern Valley (Knoxville & Chattanooga): This region is defined by outdoor access and a lower cost of entry. Knoxville ($50,183 income) and Chattanooga ($62,547 income) are ideal for those who want mountain views and a tighter-knit community feel.
The Western Hub (Memphis): Memphis stands alone in the west. With a population of 618,655 and a median income of $51,399, it offers a distinct cultural heritage and a lower barrier to entry for homeowners, though the health score of 74.6 suggests some socioeconomic challenges compared to the east.
The Verdict: Should You Move to Tennessee?
Pros:
- Tax Freedom: The 0% state income tax allows you to keep more of your paycheck, whether you earn $50,000 or $118,000.
- Affordability: With an average COL index of 92.5, your dollar goes further here than in most of the US.
- Economic Diversity: From Nashville's music industry to Chattanooga's tech boom, the state offers varied employment opportunities.
- Outdoor Access: The state boasts the Great Smoky Mountains and numerous lakes, providing free recreational activities.
Cons:
- Infrastructure Strain: Rapid growth in Nashville and Franklin is leading to traffic congestion and aging infrastructure.
- Healthcare Disparities: While Franklin scores an 83.8, Memphis lags at 74.6, indicating uneven access to quality care across the state.
- Limited Public Transit: Most cities, including Knoxville and Chattanooga, are car-dependent, with limited public transportation options.
Bottom Line: Tennessee is an ideal relocation target for professionals and families seeking to maximize their income and lifestyle by leveraging the state's unique tax advantages and below-average cost of living.
FAQs: Moving to Tennessee in 2026
What is the cheapest city to live in Tennessee?
Based on the income data, Knoxville has the lowest median income at $50,183, which generally correlates with lower absolute costs for housing and services. However, Franklin offers the lowest rent at $909, making it a surprisingly affordable option for renters.
What salary do I need to live comfortably in Tennessee?
To live comfortably in major hubs like Nashville or Franklin, a salary of $70,000 - $80,000 is recommended to cover housing, utilities, and savings. In more affordable markets like Knoxville or Memphis, a salary of $50,000 - $60,000 provides a comfortable standard of living.
What is the safest city in Tennessee?
While crime data was not fully provided for all cities, Franklin has the highest Health Score (83.8) and highest median income ($118,156), which are strong indicators of community safety and investment.
Is Tennessee a good state for families?
Yes. Cities like Franklin and Murfreesboro offer high median incomes ($118,156 and $78,069 respectively) and strong health scores, suggesting excellent environments for raising children.
What are the fastest growing cities in Tennessee?
Based on population data, Nashville (687,787) and Clarksville (180,705) show significant density, indicating strong growth trends. Franklin is also a hotspot for high-income earners, driving rapid suburban expansion.