Cost of Living in Memphis

Tennessee · Population: 618,980 · Updated 2026

Below Average
Cost Index
92.2
100 = US avg
Median Income
$52K
Annual household
Median Rent
$1,181/mo
2-bedroom unit
Rent Burden
27%
Income to rent ratio
Cost Category Breakdown

Indexed to national average (100)

Housing69.5
Groceries100.0
Utilities100.0
Transportation100.0
Healthcare100.0
Economic Details
Median Home Value$169K
State Income TaxNone
Unemployment Rate4%
Est. Net Income$52K/yr
Affordability Score
104
out of 100
Below national average cost
Salary Converter for Memphis

See what salary you'd need in another city to match your purchasing power in Memphis.

$75,000

About Memphis

Memphis is one of the most affordable major cities in America, with very low housing costs and no state income tax. It serves as a major logistics and distribution hub, home to FedEx's global headquarters.

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Frequently Asked Questions

Is Memphis expensive?

Memphis has a cost of living index of 92.2, where 100 represents the national average. This is close to the national average.

What salary do you need to live comfortably in Memphis?

Based on a rent-to-income ratio of 30%, you'd need at least $47,240 to afford the median 2-bedroom apartment in Memphis and maintain basic expenses.

What is the median rent in Memphis?

The median 2-bedroom rent in Memphis is $1,181 per month, according to HUD Fair Market Rent data.