Home Affordability for Tennessee (2026)
Tennessee (TN) Key Facts
Median Home Price
$310,000
Median Household Income
$58,000
Affordability Index
374
Price to Income Ratio
5.3
Max Affordable Payment (28% Rule)
$1,353
How This Calculator Works in Tennessee
This home affordability calculator estimates how much house you can afford in Tennessee based on your income, debts, down payment, and current interest rates. It accounts for Tennessee's property tax rate and insurance costs to give you a realistic maximum home price. Enter your financial details to see whether the median-priced home in Tennessee is within your reach.
Tennessee Overview
Tennessee has a median home price of approximately $310,000 and a median household income of $58,000, yielding a price-to-income ratio of 5.3. Because Tennessee has no state income tax, residents keep more of their gross pay, effectively stretching their housing budgets further than in income-tax states. Property taxes average 0.71%, which meaningfully impacts monthly housing costs.
How Tennessee Compares
Tennessee's price-to-income ratio of 5.3 is below the national average of roughly 5.5. Nearby North Carolina has a median price of $325,000 and median income of $60,000, yielding a ratio of 5.4. Differences in property taxes and insurance costs between states further shift the true cost of homeownership.
| State | Top Rate | Notes |
|---|---|---|
| North Carolina | $325,000 | Median home price is $325,000 with a median household income of approximately $60,000. The price-to-income ratio is 5.4. |
| Virginia | $380,000 | Median home price is $380,000 with a median household income of approximately $80,000. The price-to-income ratio is 4.8. |
| Georgia | $320,000 | Median home price is $320,000 with a median household income of approximately $62,000. The price-to-income ratio is 5.2. |
With a median home price of $310,000 and a median household income of $58,000, Tennessee has a price-to-income ratio of 5.3. The national average price-to-income ratio is approximately 5.5. Tennessee is more affordable than the national average.
Tips for Tennessee Residents
- 1The median household income in Tennessee is $58,000. Under the 28% rule, this supports a maximum monthly housing payment of about $1,353, including principal, interest, taxes, and insurance.
- 2Tennessee's price-to-income ratio of 5.3 means the typical home costs 5.3 times the annual median income. This is moderate compared to the national average of roughly 5.5.
- 3Because Tennessee has no state income tax, residents keep more of their gross pay, effectively stretching their housing budgets further than in income-tax states.
- 4Property taxes in Tennessee average 0.71%, which adds $183 per month to your housing cost on the median home. Don't overlook this when calculating affordability.
- 5Look into Tennessee's first-time homebuyer assistance programs, which may include down payment grants, low-interest second mortgages, or mortgage credit certificates (MCCs) that provide a federal tax credit on mortgage interest.