The 38112 zip code in Memphis tops our ranking of the most affordable places to live in Tennessee.
We looked at 204 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
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Memphis 🥇 | 100.0 | $123,076 | $1,038 |
| 2 | Dyersburg 🥈 | 97.4 | $153,684 | $1,682 |
| 3 | Union City 🥉 | 94.2 | $142,775 | $1,682 |
| 4 | Henderson | 93.8 | $167,062 | $1,682 |
| 5 | Ripley | 92.7 | $118,277 | $1,682 |
| 6 | Milan | 89.0 | $168,222 | $1,682 |
| 7 | Brownsville | 88.2 | $156,693 | $950 |
| 8 | Covington | 87.8 | $186,333 | $1,682 |
| 9 | Humboldt | 87.7 | $165,317 | $1,682 |
| 10 | Jackson | 87.7 | $125,691 | $1,408 |
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1. Memphis
Here's why the 38112 zip code in Memphis is Tennessee's most affordable place to live.
🔎 Key data about Memphis
| Data point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 100.0 | No. 1 | N/A |
| Median home value | $123,076[1] | No. 10 | -$228,255 |
| Home affordability ratio | 2.5 | No. 4 | -2.6 |
| Home value five-year change | 60.6%[2] | No. 133 | 4% |
| Home value one-year forecast | 1.1%[3] | No. 31 | -0.9% |
| Rental costs | $1,038[4] | No. 8 | -$644 |
| Rent affordability ratio | 2.09% | No. 32 | -0.3% |
| Median household income | $49,560[5] | No. 164 | -$20,225 |
| Property taxes | $1,861[6] | No. 158 | $167 |
| Energy costs | $0.12 kWh[7] | No. 171 | $0.00 |
Memphis's 38112 zip code is the cheapest place to live in Tennessee, leading the 204 markets we evaluated.
The median home value is $123,076, making it the 10th-cheapest housing market in the state. Forecasts project a 1.1% change in home values in the next year. Rent in the zip code averages $1,038 per month, which is the 32nd cheapest amount in Tennessee.
The median property tax for homeowners in Memphis is $1,861 per household, the No. 158 ranked market in Tennessee.
Residents pay $0.12 per kWh of electricity, which ranks No. 171 among Tennessee markets.
2. Dyersburg
The 38024 zip code is the 2nd-cheapest place to live in Tennessee.
🔎 Key data about Dyersburg
| Data point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 97.4 | No. 2 | N/A |
| Median home value | $153,684[8] | No. 16 | -$197,648 |
| Home affordability ratio | 2.9 | No. 14 | -2.1 |
| Home value five-year change | 30%[9] | No. 4 | -26% |
| Home value one-year forecast | -1.2%[10] | No. 1 | -3.2% |
| Rental costs | $1,682[11] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | $52,475[12] | No. 146 | -$17,310 |
| Property taxes | $1,059[13] | No. 69 | -$635 |
| Energy costs | $0.12 kWh[14] | No. 4 | $0.00 |
Dyersburg's 38024 zip code has a median home value of $153,684, which is the 1st-cheapest housing market in Tennessee. You can rent for an average of $1,682 per month. That's the 67th-cheapest price in the state.
The average household income in the zip code is $52,475, which ranks 146th-highest in the state.
Homeowners in Dyersburg pay a median property tax of $1,059 per year, making it the 69th-most affordable market in Tennessee.
Dyersburg ranks No. 4 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 point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 94.2 | No. 3 | N/A |
| Median home value | $142,775[15] | No. 14 | -$208,556 |
| Home affordability ratio | 2.8 | No. 11 | -2.2 |
| Home value five-year change | 43%[16] | No. 20 | -14% |
| Home value one-year forecast | 0.9%[17] | No. 15 | -1.1% |
| Rental costs | $1,682[18] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | $50,576[19] | No. 156 | -$19,209 |
| Property taxes | $774[20] | No. 24 | -$920 |
| Energy costs | $0.12 kWh[21] | No. 4 | $0.00 |
The No. 14 cheapest housing market in Tennessee is Union City's 38261 zip code, with a median home value of $142,775. Rents in the market average $1,682 per month, making it the 67th-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 point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 93.8 | No. 4 | N/A |
| Median home value | $167,062[22] | No. 20 | -$184,269 |
| Home affordability ratio | 2.9 | No. 15 | -2.1 |
| Home value five-year change | 33%[23] | No. 6 | -23% |
| Home value one-year forecast | 1.1%[24] | No. 31 | -0.9% |
| Rental costs | $1,682[25] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | 56804[26] | No. 124 | -$12,981 |
| Property taxes | $803[27] | No. 32 | -$891 |
| Energy costs | $0.12 kWh[28] | No. 4 | $0.00 |
The No. 20 cheapest housing market in Tennessee is Henderson's 38340 zip code, where the median home value is $167,062. Renters here pay an average of $1,682 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 point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 92.7 | No. 5 | N/A |
| Median home value | $118,277[29] | No. 7 | -$233,054 |
| Home affordability ratio | 2.5 | No. 5 | -2.5 |
| Home value five-year change | 47%[30] | No. 39 | -9% |
| Home value one-year forecast | 2.037106712%[31] | No. 105 | 0.0% |
| Rental costs | $1,682[32] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | $46,929[33] | No. 173 | -$22,856 |
| Property taxes | $874[34] | No. 41 | -$820 |
| Energy costs | $0.12 kWh[35] | No. 171 | $0.00 |
Ripley's 38063 zip code has a median home value of $118,277, the 7th-cheapest market in the state. Forecasts project a 2.037106712% change in home values in the next year.
The median property tax per household in Ripley is $874. It's the 41st-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 point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 89.0 | No. 6 | N/A |
| Median home value | $168,222[36] | No. 22 | -$183,110 |
| Home affordability ratio | 3.1 | No. 16 | -1.9 |
| Home value five-year change | 52%[37] | No. 76 | -4% |
| Home value one-year forecast | 1.1%[38] | No. 31 | -0.9% |
| Rental costs | $1,682[39] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | $54,514[40] | No. 136 | -$15,271 |
| Property taxes | $978[41] | No. 61 | -$716 |
| Energy costs | $0.12 kWh[42] | No. 4 | $0.00 |
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 $168,222. Rents average $1,682 per month, making it the 67th-most affordable rental market in the state.
Residents pay $0.12 per kWh of electricity. It's the 4th-cheapest energy market.
7. Brownsville
Brownsville's 38012 zip code is the 7th-cheapest place to live in Tennessee.
🔎 Key data about Brownsville
| Data point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 88.2 | No. 7 | N/A |
| Median home value | $156,693[43] | No. 17 | -$194,639 |
| Home affordability ratio | 3.8 | No. 37 | -1.3 |
| Home value five-year change | 54%[44] | No. 88 | -3% |
| Home value one-year forecast | 2.0%[45] | No. 105 | 0.0% |
| Rental costs | $950[46] | No. 4 | -$732 |
| Rent affordability ratio | 2.28% | No. 52 | -0.1% |
| Median household income | $41,702[47] | No. 189 | -$28,083 |
| Property taxes | $950[48] | No. 58 | -$744 |
| Energy costs | $0.12 kWh[49] | No. 171 | $0.00 |
You'll find the 17th-cheapest home values in Tennessee in Brownsville's 38012 zip code. The median value: $156,693. Renters in Brownsville pay an average of $950 per month.
Homeowners in Brownsville pay a median property tax of $950 per year, which is Tennessee's 58th-most affordable market.
The average household income is $41,702, which ranks 189th-highest in the state.
8. Covington
The 8th-cheapest place to live in Tennessee is Covington's 38019 zip code.
🔎 Key data about Covington
| Data point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 87.8 | No. 8 | N/A |
| Median home value | $186,333[50] | No. 26 | -$164,999 |
| Home affordability ratio | 3.3 | No. 20 | -1.8 |
| Home value five-year change | 47%[51] | No. 41 | -9% |
| Home value one-year forecast | 0.8%[52] | No. 5 | -1.2% |
| Rental costs | $1,682[53] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | $57,124[54] | No. 117 | -$12,661 |
| Property taxes | $985[55] | No. 62 | -$709 |
| Energy costs | $0.12 kWh[56] | No. 171 | $0.00 |
The 26th-cheapest housing market in Tennessee is Covington's 38019 zip code, with a median home value of $186,333. Renters pay an average of $1,682 per month, the No. 67 rental market in the state.
The median property tax for households in Covington is $985, which makes it the 62nd-cheapest place in Tennessee. The average household income of $57,124 ranks 117th.
9. Humboldt
Humboldt's 38343 zip code sneaks into the top ten of Tennessee's most affordable places to live.
🔎 Key data about Humboldt
| Data point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 87.7 | No. 9 | N/A |
| Median home value | $165,317[57] | No. 19 | -$186,014 |
| Home affordability ratio | 3.2 | No. 19 | -1.8 |
| Home value five-year change | 54%[58] | No. 90 | -2% |
| Home value one-year forecast | 1.2%[59] | No. 51 | -0.8% |
| Rental costs | $1,682[60] | No. 67 | $0 |
| Rent affordability ratio | 2.41% | No. 65 | 0.0% |
| Median household income | $51,843[61] | No. 148 | -$17,942 |
| Property taxes | $956[62] | No. 59 | -$738 |
| Energy costs | $0.12 kWh[63] | No. 4 | $0.00 |
The 19th-cheapest housing market in Tennessee is Humboldt's 38343 zip code, where the median home value is $165,317. Renters pay an average of $1,682 per month. It's the state's 67th-cheapest rental market.
The median property tax for households within the zip code is $956, which makes it the 59th-cheapest property tax rate in Tennessee.
10. Jackson
The final spot on our list of the most affordable places to live in Tennessee goes to the 38301 zip code in Jackson.
🔎 Key data about Jackson
| Data point | Value | Rank (out of 204 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 87.7 | No. 10 | N/A |
| Median home value | $125,691[64] | No. 11 | -$225,640 |
| Home affordability ratio | 3.3 | No. 23 | -1.7 |
| Home value five-year change | 42%[65] | No. 17 | -14% |
| Home value one-year forecast | 1.4%[66] | No. 85 | -0.6% |
| Rental costs | $1,408[67] | No. 29 | -$274 |
| Rent affordability ratio | 3.74% | No. 200 | 1.3% |
| Median household income | $37,692[68] | No. 197 | -$32,093 |
| Property taxes | $734[69] | No. 18 | -$960 |
| Energy costs | $0.12 kWh[70] | No. 4 | $0.00 |
The 11th-most affordable market in Tennessee is Jackson's 38301 zip code. The median home value is $125,691. Rent in the market costs $1,408 per month on average, making it the 29th-most affordable rental market in Tennessee.
The median property tax for households in Jackson is $734, which is the 18th-cheapest property tax rate in the state.
Jackson ranks No. 4 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 204 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.
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.
✍️ 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.
