When people think of Memphis, TN, they picture soulful music, mouthwatering barbecue, and a strong sense of community. But beyond the culture and entertainment, Memphis is also known as one of the most affordable large cities in the United States. For families, young professionals, and retirees alike, the cost of living in Memphis plays a huge role in deciding whether this city is the right place to call home.
Let’s break down what homeowners and potential buyers should know about housing costs, utilities, groceries, healthcare, and more in Memphis, TN.
Housing Costs in Memphis, TN
Housing is often the biggest expense for any family, and Memphis has a reputation for keeping costs reasonable compared to other U.S. cities. According to recent data, the median home price in Memphis hovers around $200,000 to $230,000, which is well below the national average of over $400,000.
For renters, the average monthly rent for a two-bedroom apartment is roughly $1,100, making it attractive for young couples or singles who want to save money. This affordability makes Memphis especially appealing for first-time homebuyers who want to build equity without stretching their budgets too thin.
Utilities and Energy Costs
Memphis Light, Gas and Water (MLGW) supplies the city, and residents generally pay less than the national average for utilities. The average electric bill is around $170 to $200 per month, depending on the season. Summers can be hot and humid, so air conditioning does push costs higher in July and August, but overall, utilities remain manageable compared to other regions.
Groceries and Dining
Food costs in Memphis are about 5% lower than the national average. A gallon of milk costs around $3, and a loaf of bread is about $2. For those who love to eat out, Memphis offers incredible value. A plate of world-famous barbecue might cost only $10–15, while local diners and soul food spots serve generous portions without breaking the bank. For families who balance home cooking with dining out, Memphis makes it easy to stretch your food budget.
Transportation Expenses
Transportation costs vary depending on whether you rely on public transit or own a car. Gas prices in Memphis are often lower than the national average, and auto insurance premiums are fairly standard for Tennessee. For those who don’t drive, the Memphis Area Transit Authority (MATA) offers bus services at affordable rates, though many residents find owning a car more practical for commuting and errands.
Healthcare Costs
Healthcare in Memphis is relatively affordable compared to other metro areas. With major hospitals like Baptist Memorial, Methodist Le Bonheur, and St. Jude Children’s Research Hospital, residents have access to top-quality care. Insurance premiums and out-of-pocket costs vary depending on plans, but overall, healthcare spending here is slightly below the national average.
Taxes in Memphis, TN
Tennessee is one of the few states with no state income tax, which is a big advantage for both workers and retirees. Sales tax in Memphis is higher than average, sitting at 9.75%, so groceries, clothes, and everyday purchases will reflect that. Property taxes are reasonable, especially considering the lower cost of homes.
Entertainment and Lifestyle
Memphis is a city rich in music, history, and outdoor activities—and enjoying them doesn’t require a huge budget. Many local attractions, like live music at Beale Street or walking through Shelby Farms Park, are free or low-cost. For families, seasonal festivals and community events offer plenty of entertainment without overspending.
Final Thoughts
Overall, the cost of living in Memphis, TN makes the city one of the best values in the country. Affordable housing, reasonable utilities, and plenty of budget-friendly dining and entertainment mean your money goes further here than in many other metro areas.
Thinking about relocating? Don’t miss our next blog, where we highlight some of the hidden gems and underrated attractions in Memphis, TN that locals love but visitors often overlook.
And if you’re already a homeowner in Memphis and want to boost your property’s curb appeal, Squeaky Clean of Memphis is here to help. Our professional services can protect your investment and make your home shine. Contact us today for a free quote.