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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

The verdict

Tennessee costs less than 75% of U.S. states, a statewide index of 91.9, 8.1% below the national average.

91.9
statewide cost index (US average = 100)
#38
of 51 states by overall cost
bottom 25%
nationally, among all states
79.1
rents RPP, the biggest budget swing

A $100,000 national salary carries the purchasing power of about $108,849 when earned in Tennessee.

Reading the Tennessee Cost of Living Picture

The Bureau of Economic Analysis places Tennessee's statewide Regional Price Parity at 91.9 for the 2024 data year, 8.1% less expensive the U.S. baseline of 100. Inside the headline figure, the state's categories sit near average, while services offer the biggest relief at 72.1. That internal spread, rather than the single state number, is what determines whether a household actually feels priced in or priced out.

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 - the rent figure tends to be the most volatile input and deserves its own line-item review before any relocation decision.

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. Pair these numbers with metro-specific wage data and rent tables before treating the statewide figure as your planning assumption.

91.9
Overall
96.2
Goods
72.1
Services
79.1
Rents

Tennessee vs every U.S. state

Where this state sits in the national cost distribution

92 Top 75% higher than 25% of 51 US states

84–87: 2 US states (4%). Below this entry. 87–90: 7 US states (14%). Below this entry. 90–93: 8 US states (16%). This entry sits in this band. 93–96: 6 US states (12%). Above this entry. 96–99: 8 US states (16%). Above this entry. 99–102: 5 US states (10%). Above this entry. 102–105: 8 US states (16%). Above this entry. 105–108: 3 US states (6%). Above this entry. 108–111: 4 US states (8%). Above this entry. 111–114: 0 US states (0%). Above this entry. 114–117: 0 US states (0%). Above this entry. This state 84 117 every US state (incl. DC), bucketed by value

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

Most Expensive in Tennessee → Cheapest in Tennessee →

Metro areas in Tennessee, ranked by cost

# Metro area OverallGoodsServicesRents
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.

RPP History

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

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.

Cost of Living Guides

Cheapest Metros to Live in 2026
Official BEA data on the most affordable areas
Most Expensive Cities: 2026 Rankings
What drives high costs and how to cope
Cost of Living vs Wages
Where your dollar goes furthest
Understanding Regional Price Parities
How BEA constructs RPP data

View all guides →

Frequently Asked Questions

What is the cost of living in Tennessee? ▼
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 is the most expensive metro in Tennessee? ▼
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.

Source: Bureau of Economic Analysis, Regional Price Parities Bureau of Economic Analysis, Regional Price Parities Index where national average = 100

Read our methodology - how this data is sourced, computed, and verified.

Every figure on PlainCost is rendered directly from BEA Regional Price Parity source data, no number is typed in by an editor. This page draws directly on BEA Regional Price Parity source data, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error.