Philadelphia vs Memphis

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: Pennsylvania salaries · Tennessee salaries

Living in Philadelphia vs Memphis

Housing is typically the biggest factor in any cost-of-living comparison. Philadelphia has a housing index of 107 while Memphis sits at 63 (national average = 100). The median home in Philadelphia costs $240,000 compared to $155,000 in Memphis, a difference of $85,000. Monthly rent follows a similar pattern: $1,400 in Philadelphia versus $1,000 in Memphis.

Groceries and everyday expenses show a notable difference: Philadelphia scores 104 while Memphis scores 93.

Healthcare costs in Philadelphia (101) are higher than Memphis (92).

Median household income in Philadelphia is $49,127 compared to $41,228 in Memphis. When adjusted for cost of living, income goes further in Memphis.

Relocating: Philadelphia vs Memphis

If you are considering a move between Philadelphia (index: 106) and Memphis (index: 84), the 21% 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 Philadelphia can afford $1,146/month, while the median household in Memphis can afford $962/month. With median homes at $240,000 in Philadelphia versus $155,000 in Memphis, both cities offer reasonable homeownership opportunities at median income.

Renting vs buying: At $1,400/month in Philadelphia and $1,000/month in Memphis, renters save significantly in Memphis. 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: Philadelphia (106) vs Memphis (84)

The cost of living index uses 100 as the national average. Philadelphia at 106 is 6% above the US average, while Memphis at 84 is 16% below average. There is a meaningful cost gap between these two cities that affects day-to-day budgeting.

Philadelphia costs meaningfully more than Memphis, with a 22-point composite gap that translates to real differences in rent, groceries, and daily expenses. The biggest category divergence is housing, where Philadelphia scores 107 and Memphis scores 63. That 44-point gap is the primary driver of the overall cost difference between these two metros. Housing, the largest line item for most households, favors Memphis with indices of 63 versus 107. Median home prices of $240,000 in Philadelphia and $155,000 in Memphis underscore this gap.

For renters: With median rents of $1,400/month in Philadelphia and $1,000/month in Memphis, the annual rent difference is approximately $4,800. Over a 5-year period, that compounds to $24,000 in savings by choosing the more affordable city.

For homebuyers: The $85,000 difference in median home prices between Philadelphia and Memphis translates to roughly $5,100 per month in mortgage payments at current rates. Factor this into your budget alongside property taxes and insurance, which also vary by location.

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