The 38024 zip code in Dyersburg tops our ranking of the most affordable places to live in Tennessee.
Whether you're searching for affordable cities and towns to buy a home or the places with the lowest cost of living to rent, consider the following zip codes.
🏠 Want to buy in Dyersburg or another affordable city in Tennessee? Connect with a local agent who knows the market.
Top 10 most affordable places to live in Tennessee
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Dyersburg 🥇 | 100.0 | $166,544 | $896 |
| 2 | Memphis 🥈 | 91.1 | $126,986 | $1,189 |
| 3 | Henderson 🥉 | 83.5 | $176,168 | $1,607 |
| 4 | Bartlett | 83.1 | $298,453 | $1,798 |
| 5 | Germantown | 79.4 | $436,253 | $2,241 |
| 6 | Ripley | 78.5 | $138,718 | $1,607 |
| 7 | Jackson | 75.7 | $137,536 | $1,228 |
| 8 | Covington | 75.6 | $208,720 | $1,607 |
| 9 | Milan | 74.5 | $183,814 | $1,607 |
| 10 | Lakeland | 74.4 | $407,804 | $2,132 |
What these affordable cities and towns have in common
The 10 zip codes we ranked share a common trait: a low cost of living relative to the Tennessee median.
Median home values, rental costs, and property taxes generally sit below the state averages, while household incomes remain strong enough to keep home affordability ratios manageable. Below, we look at each market in detail.
1. Dyersburg
Here's why the 38024 zip code in Dyersburg is Tennessee's most affordable place to live.
🔎 Key data about Dyersburg
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 100.0 | No. 1 | N/A |
| Median home value | $166,544[1] | No. 17 | -$203,905 |
| Home affordability ratio | 2.9 | No. 12 | -2.0 |
| Home value five-year change | 19.4%[2] | No. 14 | -19.4% |
| Home value one-year forecast | -0.9%[3] | No. 1 | -1.8% |
| Rental costs | $896[4] | No. 1 | -$711 |
| Rent affordability ratio | 1.57% | No. 10 | -0.6% |
| Median household income | $57,061[5] | No. 139 | -$18,686 |
| Property taxes | $1,177[6] | No. 68 | -$654 |
| Energy costs | $0.08 kWh[7] | No. 116 | $0.00 |
Dyersburg's 38024 zip code is the cheapest place to live in Tennessee, leading the 197 markets we evaluated.
The median home value is $166,544, making it the 17th-cheapest housing market in the state. Forecasts project a -0.9% change in home values in the next year. Rent in the zip code averages $896 per month, which is the 10th cheapest amount in Tennessee.
The median property tax for homeowners in Dyersburg is $1,177 per household, the No. 68 ranked market in Tennessee.
Residents pay $0.08 per kWh of electricity, which ranks No. 116 among Tennessee markets.
📈 Thinking about buying in Tennessee? See our complete housing market outlook for the data, trends, and timing insights Tennessee buyers need to know.
2. Memphis
The 38112 zip code is the 2nd-cheapest place to live in Tennessee.
🔎 Key data about Memphis
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.1 | No. 2 | N/A |
| Median home value | $126,986[1] | No. 9 | -$243,462 |
| Home affordability ratio | 2.3 | No. 4 | -2.6 |
| Home value five-year change | 12.4%[2] | No. 5 | -26.3% |
| Home value one-year forecast | -0.4%[3] | No. 7 | -1.3% |
| Rental costs | $1,189[4] | No. 16 | -$418 |
| Rent affordability ratio | 2.15% | No. 130 | 0.0% |
| Median household income | $55,207[5] | No. 149 | -$20,540 |
| Property taxes | $2,252[6] | No. 162 | $421 |
| Energy costs | $0.08 kWh[7] | No. 54 | $0.00 |
Memphis's 38112 zip code has a median home value of $126,986, which is the 9th-cheapest housing market in Tennessee. You can rent for an average of $1,189 per month. That's the 16th-cheapest price in the state.
The average household income in the zip code is $55,207, which ranks 149th-highest in the state.
Homeowners in Memphis pay a median property tax of $2,252 per year, making it the 162nd-most affordable market in Tennessee.
Memphis ranks No. 54 among Tennessee energy markets. You'll pay $0.08 per kWh of electricity.
3. Henderson
The 3rd-least-expensive place to live in Tennessee is Henderson's 38340 zip code.
🔎 Key data about Henderson
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 83.5 | No. 3 | N/A |
| Median home value | $176,168[1] | No. 19 | -$194,280 |
| Home affordability ratio | 2.8 | No. 9 | -2.1 |
| Home value five-year change | 24.4%[2] | No. 26 | -14.4% |
| Home value one-year forecast | 0.5%[3] | No. 88 | -0.4% |
| Rental costs | $1,607[4] | No. 71 | $0 |
| Rent affordability ratio | 2.12% | No. 70 | 0.0% |
| Median household income | $63,700[5] | No. 109 | -$12,047 |
| Property taxes | $943[6] | No. 42 | -$888 |
| Energy costs | $0.10 kWh[7] | No. 166 | $0.01 |
The No. 19 cheapest housing market in Tennessee is Henderson's 38340 zip code, with a median home value of $176,168. Rents in the market average $1,607 per month, making it the 71st-most affordable rental market in the state.
The median property tax for households in Henderson is $943, which makes it the 42nd-cheapest place in Tennessee. Henderson ranks No. 166 among Tennessee markets by energy costs. Residents pay $0.10 per kWh of electricity.
4. Bartlett
The 38135 zip code in Bartlett comes in at No. 4 on our list of the cheapest places to live in Tennessee.
🔎 Key data about Bartlett
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 83.1 | No. 4 | N/A |
| Median home value | $298,453[1] | No. 90 | -$71,995 |
| Home affordability ratio | 3.1 | No. 16 | -1.8 |
| Home value five-year change | 27.0%[2] | No. 38 | -11.7% |
| Home value one-year forecast | -0.3%[3] | No. 20 | -1.2% |
| Rental costs | $1,798[4] | No. 157 | $190 |
| Rent affordability ratio | 1.85% | No. 33 | -0.3% |
| Median household income | $97,282[5] | No. 25 | $21,535 |
| Property taxes | $2,597[6] | No. 167 | $766 |
| Energy costs | $0.08 kWh[7] | No. 54 | $0.00 |
The No. 90 cheapest housing market in Tennessee is Bartlett's 38135 zip code, where the median home value is $298,453. Renters here pay an average of $1,798 per month.
When it comes to energy costs, Bartlett ranks 54th among Tennessee markets. Residents pay $0.08 per kWh of electricity.
The median property tax for households in the zip code is $2,597, which makes it the 167th-cheapest market in Tennessee.
5. Germantown
The 38138 zip code in Germantown ranks No. 5 among Tennessee's most affordable places to live.
🔎 Key data about Germantown
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 79.4 | No. 5 | N/A |
| Median home value | $436,253[1] | No. 158 | $65,805 |
| Home affordability ratio | 3.2 | No. 22 | -1.7 |
| Home value five-year change | 19.6%[2] | No. 15 | -19.2% |
| Home value one-year forecast | -0.3%[3] | No. 20 | -1.2% |
| Rental costs | $2,241[4] | No. 192 | $634 |
| Rent affordability ratio | 1.64% | No. 15 | -0.5% |
| Median household income | $136,297[5] | No. 8 | $60,550 |
| Property taxes | $4,454[6] | No. 190 | $2,623 |
| Energy costs | $0.08 kWh[7] | No. 54 | $0.00 |
Germantown's 38138 zip code has a median home value of $436,253, the 158th-cheapest housing market in the state. Forecasts project a -0.3% change in home values in the next year.
The median property tax per household in Germantown is $4,454. It's the 190th-cheapest market by tax rate in Tennessee.
6. Ripley
The No. 6 most affordable city in Tennessee is the 38063 zip code.
🔎 Key data about Ripley
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 78.5 | No. 6 | N/A |
| Median home value | $138,718[1] | No. 12 | -$231,731 |
| Home affordability ratio | 2.8 | No. 10 | -2.1 |
| Home value five-year change | 30.9%[2] | No. 53 | -7.9% |
| Home value one-year forecast | 0.9%[3] | No. 96 | 0.0% |
| Rental costs | $1,607[4] | No. 71 | $0 |
| Rent affordability ratio | 2.12% | No. 70 | 0.0% |
| Median household income | $49,403[5] | No. 174 | -$26,344 |
| Property taxes | $906[6] | No. 33 | -$925 |
| Energy costs | $0.10 kWh[7] | No. 192 | $0.02 |
The back half of our top 10 kicks off with Ripley's 38063 zip code, which has the 12th-cheapest home values in Tennessee. The median home value is $138,718. Rents average $1,607 per month, making it the 71st-most affordable rental market in the state.
Residents pay $0.10 per kWh of electricity. It's the 192nd-cheapest energy market.
7. Jackson
Jackson's 38301 zip code is the 7th-cheapest place to live in Tennessee.
🔎 Key data about Jackson
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 75.7 | No. 7 | N/A |
| Median home value | $137,536[1] | No. 11 | -$232,913 |
| Home affordability ratio | 3.2 | No. 21 | -1.7 |
| Home value five-year change | 24.4%[2] | No. 27 | -14.3% |
| Home value one-year forecast | 0.6%[3] | No. 92 | -0.3% |
| Rental costs | $1,228[4] | No. 20 | -$379 |
| Rent affordability ratio | 2.84% | No. 177 | 0.7% |
| Median household income | $43,227[5] | No. 189 | -$32,520 |
| Property taxes | $788[6] | No. 15 | -$1,043 |
| Energy costs | $0.08 kWh[7] | No. 93 | $0.00 |
You'll find the 11th-cheapest home values in Tennessee in Jackson's 38301 zip code. The median value: $137,536. Renters in Jackson pay an average of $1,228 per month.
Homeowners in Jackson pay a median property tax of $788 per year, which is Tennessee's 15th-most affordable market.
The average household income is $43,227, which ranks 189th-highest in the state.
8. Covington
The 8th-least-expensive place to live in Tennessee is Covington's 38019 zip code.
🔎 Key data about Covington
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 75.6 | No. 8 | N/A |
| Median home value | $208,720[1] | No. 25 | -$161,729 |
| Home affordability ratio | 3.4 | No. 29 | -1.5 |
| Home value five-year change | 35.3%[2] | No. 75 | -3.5% |
| Home value one-year forecast | -0.3%[3] | No. 20 | -1.2% |
| Rental costs | $1,607[4] | No. 71 | $0 |
| Rent affordability ratio | 2.12% | No. 70 | 0.0% |
| Median household income | $61,826[5] | No. 121 | -$13,921 |
| Property taxes | $1,116[6] | No. 61 | -$715 |
| Energy costs | $0.09 kWh[7] | No. 133 | $0.01 |
The 25th-cheapest housing market in Tennessee is Covington's 38019 zip code, with a median home value of $208,720. Renters pay an average of $1,607 per month, the No. 71 rental market in the state.
The median property tax for households in Covington is $1,116, which makes it the 61st-cheapest place in Tennessee. The average household income of $61,826 ranks 121st.
9. Milan
Milan's 38358 zip code is one of Tennessee's most affordable towns, sneaking into the top ten of our rankings.
🔎 Key data about Milan
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 74.5 | No. 9 | N/A |
| Median home value | $183,814[1] | No. 22 | -$186,634 |
| Home affordability ratio | 2.9 | No. 13 | -2.0 |
| Home value five-year change | 43.4%[2] | No. 120 | 4.6% |
| Home value one-year forecast | 0.5%[3] | No. 88 | -0.4% |
| Rental costs | $1,607[4] | No. 71 | $0 |
| Rent affordability ratio | 2.12% | No. 70 | 0.0% |
| Median household income | $62,639[5] | No. 114 | -$13,108 |
| Property taxes | $1,247[6] | No. 77 | -$584 |
| Energy costs | $0.10 kWh[7] | No. 160 | $0.01 |
The 22nd-cheapest housing market in Tennessee is Milan's 38358 zip code, where the median home value is $183,814. Renters pay an average of $1,607 per month. It's the state's 71st-cheapest rental market.
The median property tax for households within the zip code is $1,247, which makes it the 77th-cheapest property tax rate in Tennessee.
10. Lakeland
The final spot on our list of the most affordable places to live in Tennessee goes to the 38002 zip code in Lakeland.
🔎 Key data about Lakeland
| Data point | Value | Rank (out of 197 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 74.4 | No. 10 | N/A |
| Median home value | $407,804[1] | No. 152 | $37,355 |
| Home affordability ratio | 3.5 | No. 31 | -1.4 |
| Home value five-year change | 24.2%[2] | No. 24 | -14.6% |
| Home value one-year forecast | -0.3%[3] | No. 20 | -1.2% |
| Rental costs | $2,132[4] | No. 187 | $525 |
| Rent affordability ratio | 1.82% | No. 31 | -0.3% |
| Median household income | $116,895[5] | No. 16 | $41,148 |
| Property taxes | $3,376[6] | No. 182 | $1,545 |
| Energy costs | $0.10 kWh[7] | No. 159 | $0.01 |
Rounding out our top 10 is Lakeland's 38002 zip code, with the 152nd-cheapest home values in Tennessee.
The median home value is $407,804. Rent in the market costs $2,132 per month on average.
The median property tax for households in Lakeland is $3,376, which is the 182nd-cheapest property tax rate in the state.
Lakeland ranks No. 159 among Tennessee markets by energy costs, with households paying $0.10 per kWh of electricity.
What questions about these cities should I ask local agents?
Once you've found a town you're interested in, you'll want to ask a local agent for details our rankings can't capture. Start with these four questions:
- What neighborhoods inside this zip code have the best resale value?
- What's the rental market like right now?
- Are there local property tax exemptions or homestead programs you'd qualify for?
- What are the most common surprises buyers run into here?
🏡 Need a local agent? We can connect you with an expert who knows the market.
Frequently asked questions about the least expensive places to live in Tennessee
Based on Clever's Affordability Score, the 38024 zip code in Dyersburg is the cheapest place to live in Tennessee.
The median home value is $166,544, and the median household income is $57,061, giving Dyersburg a home affordability ratio of 2.9, meaning a typical home costs about that many times the median annual income.
See our Affordability Score methodology and the full ranking of the 10 cheapest places to live in Tennessee.
The median home value in Tennessee is $370,449.
See the rankings above for how individual cities compare to these state-wide figures.
Tennessee is currently a moderate buyer's market, according to Clever's Market Heat Index.
The index reflects the balance between buyer demand and seller supply, which affects how much negotiating power buyers and sellers have in any given market.
Markets also vary by city, county, and neighborhood. It's always good to check with a local real estate agent to understand the dynamics of a given local market.
The median amount homeowners pay in property taxes in Tennessee is $1,831 per year.
Property taxes are a key part of the overall cost of living, and they vary significantly by location. The per-city tax figures in the rankings above show how each of the 10 cheapest places stacks up against the Tennessee median.
📍 The 10 cheapest places to live in your region
How we ranked the most affordable cities and towns in Tennessee
We evaluated 197 zip codes in Tennessee with a population over 10,000 on home values, rental costs, energy rates, property taxes, and five other affordability indicators. 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 13.0% 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 28.0% 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 10.0% 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 8.0% 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 7.0% 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 5.0% 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 17.0% 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 8.0% 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 4.0% 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.
Why you should trust us
Clever has earned home buyers’ and home sellers' trust with more than 4,000 5-star customer ratings on Trustpilot.
Our team is committed to making home purchasing more transparent by educating buyers and sellers through guides like this one. Our writers, editors, and industry-leading researchers strive to provide readers with the most up-to-date, accurate, and useful information.
Our research has been featured in The New York Times, Business Insider, Inman, Housing Wire, and many more publications.
About Clever Real Estate
Clever Real Estate has matched more than 227,000 buyers and sellers with agents.
We partner with over 13,000 top-performing agents nationwide at national brokers including Keller Williams, RE/MAX, Century 21, and more. Our free agent-matching tool connects sellers with agents who have agreed to work for a 1.5% commission rate, while Clever Offers lets sellers compare cash offers on their home at no charge.
Related articles
