Memphis vs Chattanooga

Category-by-Category Breakdown

Index values shown. National average = 100. Lower is cheaper.

💰 Salary Equivalence

To maintain the same standard of living:

See exact take-home pay: Tennessee salaries · Tennessee salaries

Living in Memphis vs Chattanooga

Housing is typically the biggest factor in any cost-of-living comparison. Memphis has a housing index of 63 while Chattanooga sits at 76 (national average = 100). The median home in Memphis costs $155,000 compared to $255,000 in Chattanooga, a difference of $100,000. Monthly rent follows a similar pattern: $1,000 in Memphis versus $1,200 in Chattanooga.

Groceries and everyday expenses show a narrower gap: Memphis scores 93 while Chattanooga scores 94.

Healthcare costs in Memphis (92) match Chattanooga (92).

Median household income in Memphis is $41,228 compared to $46,054 in Chattanooga. When adjusted for cost of living, income goes further in Memphis.

Relocating: Memphis vs Chattanooga

If you are considering a move between Memphis (index: 84) and Chattanooga (index: 89), the 6% cost difference has real implications for your budget. Memphis is the more affordable option, but the right choice depends on your income, career opportunities, and lifestyle priorities.

Housing budget reality: Using the 28% rule (spending no more than 28% of gross income on housing), the median household in Memphis can afford $962/month, while the median household in Chattanooga can afford $1,075/month. With median homes at $155,000 in Memphis versus $255,000 in Chattanooga, both cities offer reasonable homeownership opportunities at median income.

Renting vs buying: At $1,000/month in Memphis and $1,200/month in Chattanooga, renters face similar costs in both cities. The rent-to-own ratio in each city determines whether renting or buying offers better value for your situation.

Income adjustment: A $75,000 salary goes further in Memphis where costs are 16% below the national average. Before accepting a job in either city, use the salary equivalence data above to understand what you would need to earn to maintain your current standard of living.

Reading These Numbers: Memphis (84) vs Chattanooga (89)

The cost of living index uses 100 as the national average. Memphis at 84 is 16% below the US average, while Chattanooga at 89 is 11% below average. Both cities are relatively affordable compared to the national average.

The overall index is a weighted average of housing (the largest component), groceries, utilities, transportation, and healthcare. Housing typically drives the biggest differences between cities. Even when two cities have similar overall indices, their category-level costs can vary significantly — one city might have expensive housing but cheap groceries, while another is the reverse. Check the category breakdown above for the full picture.

For renters: With median rents of $1,000/month in Memphis and $1,200/month in Chattanooga, the annual rent difference is approximately $2,400. Over a 5-year period, that compounds to $12,000 in savings by choosing the more affordable city.

For homebuyers: The $100,000 difference in median home prices between Memphis and Chattanooga translates to roughly $6,000 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

🔗 Related Tools

📚 Moving & Relocation Resources

Amazon affiliate links