Cost of Living in Memphis, TN

Population 629,063 · Tennessee · Data vintage 2023

65
Cost Index
(100 = US avg)
Page updated: · Data vintage: 2023 ACS 5-Year
Sources: Census ACS·BLS·NOAA·EPA·Zillow · Methodology

Memphis is among the largest cities in Tennessee by population, with the kind of employment diversity and housing variation that comes with a major regional hub. Around 23% of residents live below the federal poverty line, a rate that tends to correlate with the income and housing figures above.

Cost Overview

Housing 52
Rent 85

Scale: 100 = US national average. Green < 90, Red > 110.

About the Cost of Living in Memphis

The median home value in Memphis is $157,100 — 48% below the national median of $305,000. Median rent runs $1,123/month, 15% lower than the national median of $1,314/month. The median household income of $51,211/year is 31% lower than the US median of $74,580. The local unemployment rate is 8.3%, above the national average of 4.8%. Tennessee charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 73.0°F and lows of 53.8°F, with about 2.7" of annual snowfall. Overall, Memphis has a cost of living index of 65 versus the US average of 100, meaning it is 35% less expensive.

🏠 Housing

Median Home Value
$157,100
48% below avg
Zillow Home Value
$142,869
Zillow ZHVI
Median Rent
$1,123/mo
15% below avg
Zillow Rent
$1,233/mo
Zillow ZORI
Price-to-Rent Ratio
11.7x
Favors buying
Property Tax Rate
0.7%
Effective rate

HUD Fair Market Rents by Bedroom

Studio
$731
1 BR
$809
2 BR
$948
3 BR
$1,265
4 BR
$1,510
Owner-occupied 46.0%
Renter-occupied 54.0%

💰 Estimated Monthly Budget

Rent median rent
$1,123
Groceries national estimate
$400
Utilities local estimate
$88
Transportation local gas prices
$126
Estimated Total $1,737/mo

Estimates based on median data and national averages. Actual costs vary.

🛒 Food & Groceries

National BLS average prices (2023). Local prices may vary.

🥚
Eggs (dozen)
$0.548
🍞
White Bread (lb)
$1.912
🥩
Ground Beef (lb)
$5.61

🚗 Transportation

Avg Commute
23.0 min
15% below avg
Gas Price
$3.145/gal
0% below avg
Work From Home
8.0%

Commute Mode

Drove alone
77.8%
Carpooled
10.0%
Public transit
0.8%
Walked
1.7%
Bicycle
0.2%
Work from home
8.0%

Utilities

Electricity
$0.176/kWh
0% below avg

📋 Taxes

State Income Tax (flat) None
Total Sales Tax 9.6%
State rate 7.0%
Avg local rate 2.5%
Property Tax 0.7%

💼 Income & Employment

Median Household Income
$51,211
31% below avg
Per Capita Income
$32,314
Unemployment Rate
8.3%
72% above avg
Poverty Rate
22.5%
Labor Force Participation
63.9%

🎓 Education

Bachelor's degree+ 16.9%
Graduate degree 11.3%

👥 Demographics

Median Age 34.3
Male median age 32.8
Female median age 35.9

🌤 Climate

NOAA 1991–2020 Climate Normals

Avg High
73.0°F
Avg Low
53.8°F
Annual Precip
54.9"
Annual Snowfall
2.7"
30° 48° 65° 83° 100° JFMAMJJASOND High Low Precip
Month JanFebMarAprMayJunJulAugSepOctNovDec
High °F 515664738289929286756353
Low °F 333744536270747366544336
Precip" 4.144.555.745.875.273.994.823.373.033.984.695.49
Snow" 0.91.00.50.00.00.00.00.00.00.00.10.2

💨 Air Quality

EPA AQS 2023 — county-level monitoring data

Median AQI 52 — Moderate
42.5%
Good air days/yr
140
Max AQI recorded
200
PM2.5 days
164
Ozone days

🏫 Schools

NCES CCD 2019 — public school district data

78%
4-Year Graduation Rate
16.4:1
Student-teacher ratio
223
Public schools
113,198
Total enrollment

Frequently Asked Questions

What is the cost of living in Memphis, TN?

Memphis has a cost index of 65 (100 = national average). It is 35% below the national average.

What is average rent in Memphis, TN?

The median gross rent in Memphis is $1,123 per month based on 2023 Census data.

What is the average home price in Memphis?

The median home value in Memphis is $157,100 according to Zillow and Census data.

What is the median income in Memphis?

The median household income in Memphis is $51,211 per year (2023 ACS 5-year estimates).

What is the sales tax in Memphis, TN?

The combined state and local sales tax rate in Memphis is 9.6%. Tennessee has no state income tax.

Is Memphis, TN affordable?

Yes, Memphis is generally considered affordable, with a cost of living index of 65 — about 35% below the US national average of 100.

What is the weather like in Memphis?

Memphis has average high temperatures of 73.0°F and average lows of 53.8°F. Annual precipitation is 54.9". Average annual snowfall is 2.7". Data from NOAA 1991–2020 Climate Normals.