State cost profile · 2024 BEA RPP
Cost of Living in Tennessee
Statewide Regional Price Parities for Tennessee from the Bureau of Economic Analysis, overall, goods, services, and rents vs the U.S. average of 100, across 10 metro areas.
- 91.9
- Statewide RPP
- #38
- of 51 states by cost
- 79.1
- Rents RPP
- 10
- Metro areas
Tennessee ranks #38 of 51 states by cost, and its statewide price index has held steady since 2008.
- stable since 2008
- fell -0.2 points in the 2023-2024 release
- similar cost to New Mexico
The verdict
Tennessee costs less than 75% of U.S. states, a statewide index of 91.9, 8.1% below the national average.
- Services
- furthest category from 100, at 72.1
- New Mexico
- closest statewide cost peer, 0.3 points away
- Nashville-Davidson--Murfreesboro--Franklin
- highest-cost metro, 96.3
- Jackson
- lowest-cost metro, 85.5
A $100,000 national salary carries the purchasing power of about $108,849 when earned in Tennessee.
Tennessee RPP history, 2008–2024
The statewide index has changed by only 0.2 points from 2008 to 2024. The line shows every retained BEA release against the national benchmark of 100; the table preserves the component detail.
| Year | Overall |
|---|---|
| 2008 | 91.7 |
| 2009 | 90.5 |
| 2010 | 92.4 |
| 2011 | 92.9 |
| 2012 | 93.4 |
| 2013 | 93.0 |
| 2014 | 92.8 |
| 2015 | 92.8 |
| 2016 | 93.8 |
| 2017 | 93.0 |
| 2018 | 89.6 |
| 2019 | 91.3 |
| 2020 | 90.5 |
| 2021 | 90.6 |
| 2022 | 91.8 |
| 2023 | 92.1 |
| 2024 | 91.9 |
Reading the Tennessee Cost of Living Picture
Tennessee sits in an affordability lane closest to New Mexico, Wyoming, Ohio. A lower statewide index does not mean every place or budget category is cheap; it means this state belongs with those peers before a household narrows to a metro. Its category range is 24.1 points: large enough to separate housing-sensitive and service-heavy budgets, but not a single-component outlier.
Tennessee captures 10 metro areas in the BEA dataset, and the range across them is meaningful. Nashville-Davidson--Murfreesboro--Franklin, TN leads on cost at 96.3, while Jackson, TN sits at the opposite end at 85.5 - a gap of 10.8 index points inside a single state. For goods the state indexes at 96.2, for services 72.1, and for rents 79.1. Rents sit within 12.8 points of the statewide index, so no single category is distorting the headline — unusual, and it makes the state number more transferable between households than most.
Over time, Tennessee's statewide index has held steady within 0.2 points, suggesting a stable competitive position against other states. Practically, this means a $100,000 national salary delivers the purchasing power of about $108,849 of national buying power when earned inside Tennessee, and a household relocating here would need roughly $91,870 to reproduce a $100K lifestyle. With 10 reporting metros inside the state, treat this figure as the midpoint of a range rather than a quote for any one address.
Tennessee vs every U.S. state
Where this state sits in the national cost distribution
92 Bottom 25% higher than 25% of 51 US states
Each bar is a band; taller bars hold more US states. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.
Source U.S. Bureau of Economic Analysis, Regional Price Parities · 2024
Latest BEA release change
What changed from 2023 to 2024
Tennessee's overall RPP fell -0.2 points, from 92.1 in 2023 to 91.9 in 2024. The largest category move was services, changing from 76.4 to 72.1. RPP is a relative price index, so this reports a change against the national benchmark rather than a household's dollar bill.
Metro areas in Tennessee, ranked by cost
| # | Metro area | Overall | Goods | Services | Rents |
|---|---|---|---|---|---|
| 1 | Nashville-Davidson--Murfreesboro--Franklin | 96.3 | 96.2 | 72.0 | 104.6 |
| 2 | Knoxville | 92.6 | 96.2 | 71.9 | 82.8 |
| 3 | Memphis | 92.2 | 96.2 | 74.1 | 79.8 |
| 4 | Chattanooga | 91.5 | 96.0 | 74.2 | 76.5 |
| 5 | Clarksville | 90.9 | 96.2 | 72.5 | 73.8 |
| 6 | Cleveland | 88.1 | 96.2 | 72.3 | 60.3 |
| 7 | Johnson City | 87.9 | 96.2 | 71.9 | 63.2 |
| 8 | Kingsport-Bristol | 86.4 | 96.2 | 75.9 | 56.5 |
| 9 | Morristown | 86.4 | 96.2 | 72.4 | 59.0 |
| 10 | Jackson | 85.5 | 96.2 | 72.6 | 56.6 |
The Rents RPP index measures housing costs relative to the national average (100). For the federal 40th-percentile Fair Market Rent by bedroom size and county, see the HUD Fair Market Rents dataset.
What this means in Tennessee
The statewide index is a starting point, cost varies metro to metro within Tennessee.
- Don't rely on the state figure alone: Nashville-Davidson--Murfreesboro--Franklin (96.3) and Jackson (85.5) sit 11 index points apart inside Tennessee. Check your specific metro.
- Rents index at 79.1 (20.9% below average) - the largest swing in the RPP. Review the housing line before any relocation decision. Highest rents
- Weighing Tennessee against another state? Convert your salary to local purchasing power first. Salary calculator
RPP is BEA's annual price-level benchmark (national average = 100) for the data year shown, pair it with local wages and current rents before deciding.
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Cost of living guides →, cheapest and most-expensive rankings, cost of living vs wages, and how BEA constructs RPP data.
States with Similar Cost of Living
These states have RPP indices closest to Tennessee, making them useful peers for relocation or budget comparison.
Nationwide states with similar overall cost or rent prices
Two BEA RPP-derived peer sets for Tennessee: nearest states by overall regional price parity and by rents RPP. These are labelled nationwide neighborhoods, distinct from the closest-RPP list above.
Similar overall RPP
Nearest states by overall regional price parity (91.9 here).
Similar rents RPP
Nearest states by rents regional price parity (79.1 here).
Source: Bureau of Economic Analysis, Regional Price Parities Index where national average = 100
Frequently Asked Questions
How much cheaper is living in Tennessee than the U.S. average?
Tennessee has a Regional Price Parity (RPP) index of 91.9, meaning it is 8.1% less expensive than the national average. Goods are indexed at 96.2, services at 72.1, and rents at 79.1.
What salary in Tennessee equals $100K nationally?
To maintain the same purchasing power as a $100,000 salary at the national average, you would need approximately $91,870 in Tennessee. Conversely, $100K earned in Tennessee has the purchasing power of $108,849 at the national average.
Is housing expensive in Tennessee?
Rents in Tennessee are indexed at 79.1, which is 20.9% below the national average. The state is relatively affordable for renters.
Which metros stretch Tennessee's cost range the widest?
The most expensive metro area in Tennessee is Nashville-Davidson--Murfreesboro--Franklin, TN with an RPP of 96.3. The most affordable is Jackson, TN at 85.5. There are 10 metro areas in Tennessee with BEA price data.
Is Tennessee getting more expensive?
From 2008 to 2024, Tennessee's overall cost index changed by +0.2 points (from 91.7 to 91.9). The cost of living has remained relatively stable.
Data sources
- BEA Regional Price Parities (RPP), the cost-of-living indices shown on this page
- U.S. Census Bureau, American Community Survey (ACS), gross-rent observations behind the rents component
- BLS Consumer Price Index (CPI), goods and services price relatives
- BLS Occupational Employment and Wage Statistics (OEWS), labor-driven services component
- HUD Fair Market Rents (FMR), 40th-percentile rent cross-reference
Every figure on PlainCost is rendered directly from BEA Regional Price Parity source data, no number is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, our changelog, or report a data error. Data current as of 2024. Rankings measure the published cost-of-living index only; we don't recommend where to live or rate any metro's quality of life.