Tennessee offers a variety of affordable living options, from small towns to mid-sized cities, each with its own unique charm and amenities. Whether you’re a retiree, a young professional, or a growing family, the Volunteer State has something to suit your budget. Here’s a look at the 10 most affordable places to live in Tennessee as of 2025.
1. Union City
Union City stands out as the most affordable place to live in Tennessee, with a median home price of just $141,700 and average rent for a one-bedroom apartment around $725. Located in the state’s northwestern corner, this city offers a blend of urban and rural living. Residents enjoy historical landmarks, museums, theaters, parks, and a variety of local dining options. Its low cost of living makes it an attractive choice for those seeking budget-friendly living without sacrificing quality of life.
2. Dyersburg
Dyersburg is a budget-friendly city in Northwest Tennessee, boasting a median home price of $134,600 and average rent for a one-bedroom apartment around $688. The city’s low housing costs and affordable amenities make it an attractive option for retirees and families looking to stretch their budgets.
3. McMinnville
Situated in Middle Tennessee, McMinnville offers a modest cost of living with a median home price of $111,100 and average rent for a one-bedroom apartment around $663. The town is known for its strong sense of community and access to outdoor activities, making it an appealing choice for those seeking a peaceful lifestyle.
4. Paris
Paris, located near Kentucky Lake, is an affordable retirement destination with a median home price of $145,200. The town offers small-town charm, natural beauty, and a cost of living significantly lower than national and state averages. Retirees benefit from no state income tax and reduced food and housing costs, enabling savings on a fixed income.
5. Kingsport
Kingsport, located in eastern Tennessee, is renowned for its affordable cost of living and robust job market, especially in the healthcare and manufacturing sectors. The city offers a myriad of recreational activities such as hiking and boating, with a median home price of $155,700 and average rent for a one-bedroom apartment around $720.
6. Athens
Athens, located in East Tennessee, offers a peaceful and affordable living environment with a median home price of $163,500 and average rent for a one-bedroom apartment around $734. The city is known for its historic downtown area and close proximity to the Great Smoky Mountains National Park, providing residents with numerous outdoor adventures.
7. Jackson
Jackson, one of the largest cities in Tennessee by population, offers a friendly small-city atmosphere on a budget. With a median home price of $130,341 and average rent for a one-bedroom apartment around $1,675, Jackson provides affordable housing options. The city is known for its vibrant community and access to various amenities.
8. Tullahoma
Tullahoma, located in southern Middle Tennessee, combines affordability with a strong sense of community. The city offers a cost of living that is attractive, with a median home price of $167,700 and average rent for a one-bedroom apartment around $735. Residents benefit from access to quality healthcare, outdoor recreational opportunities, and a low crime rate.
9. Rockwood
Nestled within the grandeur of the Great Smoky Mountains, Rockwood offers a cost of living that is gentle on the wallet. With low home prices and a variety of local activities, including the annual Thunder Road Festival and beautiful parks, Rockwood provides an affordable living option in East Tennessee.
10. Covington
Covington offers affordable housing options with a median home price of $191,618. The city’s cost of living is significantly lower than the national average, making it an attractive place for those looking to stretch their budgets. Covington’s proximity to Memphis provides residents with access to urban amenities while enjoying a more relaxed, small-town lifestyle.
Conclusion
Tennessee’s diverse cities and towns offer a range of affordable living options, each with its own unique characteristics and amenities. Whether you’re drawn to the small-town charm of McMinnville, the natural beauty of Paris, or the community spirit of Jackson, there’s a place in Tennessee that can fit your budget and lifestyle. When considering a move, it’s essential to weigh factors such as housing costs, local amenities, job opportunities, and overall quality of life to find the best fit for your needs.