Memphis vs Pensacola
Cost of Living Comparison · 2026
Memphis
Pensacola
The Verdict
Memphis is 5.6% less expensive than Pensacola overall. A household earning $75,000 in Memphis would need approximately $79,464 in Pensacola to maintain the same standard of living.
Category-by-Category Breakdown
Index values · National average = 100 · Lower is more affordable
Salary Equivalence
A $75,000 salary in Memphis has the same purchasing power as $79,464 in Pensacola.
Conversely, $75,000 in Pensacola equals $70,787 in Memphis.
Living in Memphis vs Pensacola
Housing Costs
Memphis's housing index of 63 is lower Pensacola's 80, translating to median home prices of $155,000 vs $314,000. The $159,000 difference in home prices means roughly $10,332 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,000/mo in Memphis compared to $1,350/mo in Pensacola, a monthly difference of $350.
Grocery & Food Costs
Grocery expenses index at 93 in Memphis and 101 in Pensacola. A household spending the national average of $475/month on groceries would pay approximately $442/month in Memphis vs $480/month in Pensacola. Memphis offers a meaningful advantage on everyday food costs, saving roughly $456/year.
Utility Expenses
Utility costs — electricity, gas, water, internet — index at 88 in Memphis and 94 in Pensacola. Monthly utility bills average approximately $352 in Memphis vs $376 in Pensacola. Utility costs are relatively comparable between these two cities.
Healthcare
Healthcare costs index at 92 in Memphis and 100 in Pensacola. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. Healthcare costs are relatively similar between these two cities, though individual plan costs can still vary.
Income & Purchasing Power
Median household income is $41,228 in Memphis and $63,200 in Pensacola. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $49,081 and $71,011 respectively. Pensacola residents come out ahead in real purchasing power.
Relocation Considerations
Under the standard 28% rule, a median-income household can allocate $962/month to housing in Memphis vs $1,475/month in Pensacola. In Memphis, median rent of $1,000/mo exceeds this threshold, suggesting renters may feel stretched. In Pensacola, median rent of $1,350/mo remains manageable. The biggest category-level difference between these two cities is Housing, where the gap is 17 index points — focus your budget analysis there.
Frequently Asked Questions
Moving & Relocation Resources
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