The 10 Most Affordable Places to Live in Tennessee

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By Michael Yessis Updated June 13, 2024
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Edited by Ashley Simon

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The 38024 zip code in Dyersburg tops our ranking of the most affordable places to live in Tennessee.

We looked at 207 zip codes in the state, evaluating home values, rental costs, energy rates, property taxes, and five other affordability indicators. We used the data we gathered to calculate our proprietary Affordability Score for each zip code.  

Top 10 most affordable places to live in Tennessee

RankCity Affordability Score Median home valueRental costs
1Dyersburg 🥇100$157,420$575
2Memphis🥈84.3$58,764$851
3Union City 🥉81.8$151,412$1,675
4Henderson79.9$167,355$1,675
5Ripley77.9$136,900$1,675
6Milan76.2$172,800$1,675
7Athens76.2$249,943$952
8Elizabethton75.7$214,794$600
9Jackson75.1$130,341$1,675
10Covington75.0$191,618$1,675
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1. Dyersburg

Here's why the 38024 zip code in Dyersburg is Tennessee's most affordable place to live.

🔎 Key data about Dyersburg

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 100 No. 1N/A
Median home value $157,420[1]No. 16 -$196,625.64
Home affordability ratio 3.0No. 14-2.1
Home value five-year change 31.6%[2]No. 1-30.8%
Home value one-year forecast -2.4%[3]No. 1-3.2%
Rental costs $575[4]No. 1-$1,100
Rent affordability ratio 1.10%No. 1-1.3%
Median household income $52,475[5]No. 149-$17,237
Property taxes $1,059[6]No. 70-$624
Energy costs $0.12 kWh[7]No. 4$0.00
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Dyersburg's 38024 zip code is the cheapest place to live in Tennessee, leading the 207 markets we evaluated. 

The median home value is $157,420, making it the 16th-cheapest housing market in the state. Forecasts project a -2.4% change in home values in the next year. Rent in the zip code averages $575 per month, which is the 1st cheapest amount in Tennessee.

The median property tax for homeowners in Dyersburg is $1,059 per household, the No. 70 ranked market in Tennessee. 

Residents pay $0.12 per kWh of electricity, which ranks No. 4 among Tennessee markets.

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2. Memphis

The 38106 zip code is the 2nd-cheapest place to live in Tennessee.

🔎 Key data about Memphis

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 84.3No. 2N/A
Median home value $58,764[8]No. 1-$295,282.03
Home affordability ratio 2.0No. 1-3.1
Home value five-year change 76.7%[9]No. 17314.3%
Home value one-year forecast 0.1%[10]No. 27-0.7%
Rental costs $851[11]No. 3-$824
Rent affordability ratio 2.92%No. 1800.5%
Median household income $29,098[12]No. 206-$40,614
Property taxes $901[13]No. 47-$782
Energy costs $0.12 kWh[14]No. 172$0.00
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Memphis's 38106 zip code has a median home value of $58,764, which is the 27th-cheapest housing market in Tennessee. You can rent for an average of $851 per month. That's the 3rd-cheapest price in the state.

The average household income in the zip code is $29,098, which ranks 206th-highest in the state. 

Homeowners in Memphis pay a median property tax of $901 per year, making it the 47th-most affordable market in Tennessee.

Memphis ranks No. 172 among Tennessee energy markets. You'll pay $0.12 per kWh of electricity.

3. Union City

The 3rd-cheapest place to live in Tennessee is Union City's 38261 zip code.

🔎 Key data about Union City

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 81.8No. 3N/A
Median home value $151,412[15]No. 14-$202,633.86
Home affordability ratio 3.0No. 13-2.1
Home value five-year change 47.3%[16]No. 12-15.1%
Home value one-year forecast -0.7%[17]No. 2-1.5%
Rental costs $1,675[18]No. 66$0
Rent affordability ratio 2.40%No. 600.0%
Median household income $50,576[19]No. 159-$19,136
Property taxes $774[20]No. 24-$909
Energy costs $0.12 kWh[21]No. 4$0.00
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The No. 14 cheapest housing in Tennessee is Union City's 38261 zip code, with a median home value of $151,412. Rents in the market average $1,675 per month, making it the 66th-most affordable rental market in the state.

The median property tax for households in Union City is $774, which makes it the 24th-cheapest place in Tennessee. Union City ranks No. 4 among Tennessee markets by energy costs. Residents pay $0.12 per kWh of electricity.

4. Henderson

The 38340 zip code in Henderson comes in at No. 4 on our list of the cheapest places to live in Tennessee.

🔎 Key data about Henderson

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 79.9No. 4N/A
Median home value $167,355[22]No. 19-$186,690.63
Home affordability ratio 2.9No. 11-2.1
Home value five-year change 47.2%[23]No. 11-15.3%
Home value one-year forecast 0.7%[24]No. 109-0.1%
Rental costs $1,675[25]No. 66$0
Rent affordability ratio 2.40%No. 600.0%
Median household income $56,804[26]No. 127-$12,908
Property taxes $803[27]No. 32-$880
Energy costs $0.12 kWh[28]No. 4$0.00
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The No. 19 cheapest housing market in Tennessee is Henderson's 38340 zip code, where the median home value is $167,355. Renters here pay an average of $1,675 per month. 

When it comes to energy costs, Henderson ranks 4th among Tennessee markets. Residents pay $0.12 per kWh of electricity.

The median property tax for households in the zip code is $803, which makes it the 32nd-cheapest market in Tennessee.

5. Ripley

The 38063 zip code in Ripley ranks No. 5 among Tennessee's most affordable places to live.

🔎 Key data about Ripley

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 77.9No. 5N/A
Median home value $136,900[29]No. 10-$217,146.34
Home affordability ratio 2.9No. 10-2.2
Home value five-year change 67.0%[30]No. 1384.6%
Home value one-year forecast 0.8%[31]No. 1270.0%
Rental costs $1,675[32]No. 66$0
Rent affordability ratio 2.40%No. 600.0%
Median household income $46,929[33]No. 176-$22,783
Property taxes $874[34]No. 42-$809
Energy costs $0.12 kWh[35]No. 172$0.00
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Ripley's 38063 zip code has a median home value of $136,900, the 10th-cheapest market in the state. Forecasts project a 0.8% change in home values in the next year. 

The median property tax per household in Ripley is $874. It's the 42nd-cheapest market by tax rate in Tennessee.

6. Milan

The No. 6 most affordable place to live in Tennessee is the 38358 zip code.

🔎 Key data about Milan

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 76.2No. 6N/A
Median home value $172,800[36]No. 22-$181,246.36
Home affordability ratio 3.2No. 16-1.9
Home value five-year change 59.0%[37]No. 80-3.4%
Home value one-year forecast 0.7%[38]No. 109-0.1%
Rental costs $1,675[39]No. 66$0
Rent affordability ratio 2.40%No. 600.0%
Median household income $54,514[40]No. 139-$15,198
Property taxes $978[41]No. 62-$705
Energy costs $0.12 kWh[42]No. 4$0.00
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The back half of our top 10 kicks off with Milan's 38358 zip code, which has the 22nd-cheapest home values in Tennessee. The median home value is $172,800. Rents average $1,675 per month, making it the 66th-most affordable rental market in the state.

Residents pay $0.12 per kWh of electricity. It's the 4th-cheapest energy market.

7. Athens

Athens's 37303 zip code is the 7th-cheapest place to live in Tennessee.

🔎 Key data about Athens

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 76.2No. 7N/A
Median home value $249,943[43]No. 67-$104,102.64
Home affordability ratio 4.3No. 67-0.8
Home value five-year change 59.5%[44]No. 87-2.9%
Home value one-year forecast 0.6%[45]No. 94-0.2%
Rental costs $952[46]No. 7-$723
Rent affordability ratio 1.63%No. 10-0.8%
Median household income $58,466[47]No. 111-$11,246
Property taxes $800[48]No. 30-$883
Energy costs $0.12 kWh[49]No. 4$0.00
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You'll find the 67th-cheapest home values in Tennessee in Athens's 37303 zip code. The median value: $249,943. Renters in Athens pay an average of $952 per month.

Homeowners in Athens pay a median property tax of $800 per year, which is Tennessee's 30th-most affordable market.

The average household income is $58,466, which ranks 111th-highest in the state.

8. Elizabethton

The 8th-cheapest place to live in Tennessee is Elizabethton's 37643 zip code.

🔎 Key data about Elizabethton

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 75.7No. 8N/A
Median home value $214,794[50]No. 41-$139,251.61
Home affordability ratio 4.5No. 81-0.6
Home value five-year change 67.2%[51]No. 1394.8%
Home value one-year forecast 1.4%[52]No. 1530.6%
Rental costs $600[53]No. 2-$1,075
Rent affordability ratio 1.26%No. 2-1.1%
Median household income $47,665[54]No. 172-$22,047
Property taxes $860[55]No. 39-$823
Energy costs $0.12 kWh[56]No. 4$0.00
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The 41st-cheapest housing market in Tennessee is Elizabethton's 37643 zip code, with a median home value of $214,794. Renters pay an average of $600 per month, the No. 2 rental market in the state.

The median property tax for households in Elizabethton is $860, which makes it the 39th-cheapest place in Tennessee. The average household income of $47,665 ranks 172nd.

9. Jackson

Jackson's 38301 zip code sneaks into the top ten of Tennessee's most affordable places to live.

🔎 Key data about Jackson

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 75.1No. 9N/A
Median home value $130,341[57]No. 9-$223,704.50
Home affordability ratio 3.5No. 22-1.6
Home value five-year change 58.5%[58]No. 73-3.9%
Home value one-year forecast 0.8%[59]No. 1160.0%
Rental costs $1,675[60]No. 66$0
Rent affordability ratio 2.40%No. 600.0%
Median household income $37,692[61]No. 200-$32,020
Property taxes $734[62]No. 18-$949
Energy costs $0.12 kWh[63]No. 4$0.00
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The 9th-cheapest housing market in Tennessee is Jackson's 38301 zip code, where the median home value is $130,341. Renters pay an average of $1,675 per month. It's the state's 66th-cheapest rental market.

The median property tax for households within the zip code is $734, which makes it the 18th-cheapest property tax rate in Tennessee. 

10. Covington

The final spot on our list of the most affordable places to live in Tennessee goes to the 38019 zip code in Covington.

🔎 Key data about Covington

Data pointValueRank (out of 207 markets)Difference from median or average
Affordability Score 75.0No. 10N/A
Median home value $191,618[64]No. 27-$162,428.19
Home affordability ratio 3.4No. 19-1.7
Home value five-year change 56.1%[65]No. 54-6.3%
Home value one-year forecast 0.0%[66]No. 4-0.8%
Rental costs $1,675[67]No. 66$0
Rent affordability ratio 2.40%No. 600.0%
Median household income $57,124[68]No. 120-$12,588
Property taxes $985[69]No. 63-$698
Energy costs $0.12 kWh[70]No. 172$0.00
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The 27th-most affordable market in Tennessee is Covington's 38019 zip code. The median home value is $191,618. Rent in the market costs $1,675 per month on average, making it the 66th-most affordable rental market in Tennessee.

The median property tax for households in Covington is $985, which is the 63rd-cheapest property tax rate in the state.

Covington ranks No. 172 among Tennessee markets by energy costs, with households paying $0.12 per kWh of electricity.

How we ranked the most affordable places in Tennessee

We evaluated 207 zip codes in Tennessee with a population over 10,000 on nine metrics. We then assigned each market an Affordability Score based on its weighted and combined rankings. 

✍️ Editor’s note: Our Affordability Score identifies the most affordable places in a state by zip code.

Often the zip code we identify will represent an entire city or portion of a city. 

Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location. 

If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.

Methodology: What is an Affordability Score?

Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.

  • Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in Tennessee, the higher our score on this component. We assign a weight of 23.8% to median home value.
  • Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 23.8% to the home affordability ratio.
  • Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 4.8% to the home value five-year change.
  • Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 4.8% to the home value one-year forecast.
  • Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 11.9% to rental costs. 
  • Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 4.8% to median household income.
  • Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 11.9% to the rent affordability ratio.
  • Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the Tennessee average, the higher our score on this component. We assign a weight of 7.1% to property taxes. 
  • Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the Tennessee average, the higher our score on this component. We assign a weight of 7.1% to energy costs.  

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