10 Most Affordable Housing Markets in Tennessee
Tennessee has a lot to offer, with a rich musical heritage, great weather, outdoor adventures, and more. But some cities are downright expensive: Brentwood has a typical home price of over $1.2 million.
Plus, Nashville was a pandemic hot spot; prices are now 45% above January 2020 levels.
Surprisingly, the 10 most affordable Tennesse towns offer homes below $230,000.
Have your eye on Tennessee? You may want to check out these cities.
1. Memphis
2. Dyersburg
3. Newport
4. Elizabethton
5. Jackson
6. Bristol
7. Greeneville
8. Lawrenceburg
9. Millington
10. Fayetteville
1. Memphis
Home price | $143,246 |
Mortgage | $136,084 |
Estimated Payment* | $980 |
*Payments mentioned do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend.
A city that needs no introduction – and the most affordable on our list – is Memphis. The former home of the likes of Elvis, B.B. King, and Jerry Lee Lewis carries its musical heritage on to this day with the world-famous Sun Studio, Memphis Music Hall of Fame, and countless other musical attractions. Those who go "walking in Memphis" will soon realize how affordable it is to own a home close to one of the artistic epicenters of the world.
2. Dyersburg
Home price | $150,707 |
Mortgage | $143,172 |
Estimated Payment | $1,031 |
About 80 miles northeast of Memphis is Dyersburg, a much smaller town of around 16,000 according to the 2020 census. While there’s plenty to do recreationally, such as exploring its historic Court Square area, employment opportunities abound with companies like Hillshire Brands, Caterpillar, and others.
3. Newport
Home price | $200,686 |
Mortgage | $190,652 |
Estimated Payment | $1,373 |
A small town of about 7,000 according to the U.S. Census Bureau, Newport is a vibrant area with job opportunities in the manufacturing, hospitality, and healthcare industries.
4. Elizabethton
Home price | $209,190 |
Mortgage | $198,731 |
Estimated Payment | $1,431 |
The fourth most affordable city in Tennessee is Elizabethton. Historic Main Street is a major attraction and the town is home to the oldest building in the state: the Carter Mansion. Homebuyers who want to live in a historic, inviting town without breaking the bank will love Elizabethton.
5. Jackson
Home price | $211,205 |
Mortgage | $200,645 |
Estimated Payment | $1,444 |
Jackson is one of the larger metros on the list at nearly 70,000 in population. The city offers a strong employment and economic base rooted in manufacturing, IT, and healthcare. Fun fact: Most believe the Johnny and June Carter Cash hit “Jackson” is about this Tennessee town.
6. Bristol
Home price | $214,464 |
Mortgage | $203,741 |
Estimated Payment | $1,467 |
NASCAR fans will love living in Bristol, as the Bristol Motor Speedway hosts major events each April and August, drawing 150,000 fans from all 50 states. Not a race fan? Music lovers will be glad to know that the town was christened the “Birthplace of Country Music” by Congress in 1998.
7. Greeneville
Home price | $214,537 |
Mortgage | $203,810 |
Estimated Payment | $1,467 |
The birthplace of Davy Crockett, Greeneville is home to a state park dedicated to the pioneer and politician. Home prices are affordable in the area, and helping homebuyers is the fact that the entire town is geographically eligible for zero-down USDA loans.
8. Lawrenceburg
Home price | $222,385 |
Mortgage | $211,266 |
Estimated Payment | $1,521 |
From outdoor adventures to shopping and food, Lawrenceburg has a little for everyone. The cost of living is 22% lower than the U.S. average, too, according to tourism website Visit Lawrenceburg. Those looking for an affordable place to live should give this town a visit.
9. Millington
Home price | $227,724 |
Mortgage | $216,338 |
Estimated Payment | $1,557 |
A town of around 10,000, Millington is a suburb of Memphis. Employment in the area is buoyed by the Nava Support Activity Mid-South naval station, one of the largest employers in Tennessee.
10. Fayetteville
Home price | $228,777 |
Mortgage | $217,338 |
Estimated Payment | $1,565 |
Fayetteville is a small town with big value. With property prices under $230,000, plus entertainment and job opportunities, homebuyers should consider this Tennessee locale.
Get pre-approved for your Tennessee home
Many towns and cities across Tennessee are affordable for just about any budget. See what home price you qualify for by requesting your pre-approval from a reputable lender.
Methodology
To find the 10 most affordable housing markets in Tennessee, we started with typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population in the U.S. per Zillow’s report.
