Cheapest Cities to Live in Tennessee: 7 Most Affordable Places to Buy a Home

Tennessee’s reputation as one of the cheapest places to live in the southern United States has increased interest in living in the Volunteer State. No state income tax, low property taxes, and low-cost housing definitely contribute to that. With November 2024 median sale prices at $320,000–almost $100,000 less than the national median–it’s a strong sign you can find affordable places to buy somewhere in the state.

And think about your choices–beautiful mountain living, waterfront on miles-long freshwater reservoirs, or close to culturally rich cities. No wonder Tennessee is a great place to live!

Here, we use housing values from the 2022 American Community Survey and the US Census with the most recent available market data to find the most affordable places to buy a home in Tennessee. It quickly became apparent that Tennessee could be an excellent choice for those dreaming of a mountain lifestyle.

Introduction to Affordable Housing in Tennessee

Tennessee blends urban and rural living with a lower cost of living than the national average. The state’s affordable housing options make it an attractive destination for people looking to relocate, whether they are families, singles, or retirees. These destinations include quiet mountain towns with scenic views and access to national parks and music-filled cities brimming with energy.

Explore the affordable housing options in Tennessee, including the costs, lifestyle, and amenities that make these top choices an attractive place to live.

Jackson, TN

The most affordable place to own a home is Jackson, TN. Owned residential properties had a value of $174,100. Owners with a mortgage paid a median of $1,186 on their monthly payments.

Never heard of Jackson? Find it right on I-40, halfway between Memphis and Nashville. Its nickname, “Hub City,” comes from its strategic location. Jackson has a long history as a multi-model hub for manufacturing, producing everything from potato chips to automobile parts. “Hub” also refers to its role as the region’s economic center. It has six colleges and universities, a flourishing and historic music culture, and accessible healthcare.

Today, over 68,000 people proudly call Jackson their home–so it’s a large town but one with things to do and affordable housing. Jackson’s affordability is a key reason why it’s growing, as people seek low-cost housing near economic centers. Home prices grew throughout 2023 and led to December posting a median sold price of $249,700, a year-over-year increase of 8%. The median household income in Jackson is $51,552, which contributes to its affordability for residents.

Jackson is the only city in western Tennessee on our list of top affordable places to buy a home in Tennessee.

Kingsport-Bristol

The heart of the Mountain Empire in northeastern Tennessee includes communities across the border into Virginia. Homes carried affordable values, which the 2022 ACS survey placed at $185,700.

The median home value in Kingsport is $233,400 as of 2024. It has excellent housing affordability to accompany its small-town life.

This historic corner of Tennessee has pioneering roots going back to colonial America. As the launching point for the pioneers’ Wilderness Road, Kingsport has steadily grown into a manufacturing center on the Holston River. The town was one of the first planned cities, which has helped it sustain growth over the years. Kingsport and its neighboring town of Bristol have fun, modern attractions, from ziplines to zoos, and incredible access to mountain-based national and state parks. It’s outdoor activities are perfect for nature lovers who still want a touch of city life. Over 56,000 people lived in Kingsport in 2023.

The entire Northeastern Tennessee region had a median home sale price of $251,500 to close out November 2024. That was up 0.6% over the prior year’s home prices, indicative of regional stability. Specifically in Kingsport city limits, the month’s median sold was $240,000.

Greeneville

That’s Greeneville with an “E,” as proud locals will remind you. Another northeastern Tennessee town and the state’s third most affordable place to buy, Greeneville had higher home values but the lowest median mortgage payment at $1,015. Housing values were at a median of $231,400. Median sold prices in November 2024 reached $230,000.

Find Greenville north of the North Carolina border off Highway 321 in the beautiful mountain foothills. Named after a Revolutionary War hero, Greeneville sits in the Appalachia foothills. It was home to America’s 17th President and is now a National Historic Site and Park. Downtown Main Street has the classic small-town center look with brick building facades and Revival features. Historic monuments abound as the city sits at the crossroads of expanding America and Civil War battles. Today, 16,000 people call Greeneville home.

Morristown

Morristown has a double benefit: it’s sandwiched between two incredibly long and beautiful reservoirs. Plus, it’s close to Sevierville, Pigeon Forge, and Gatlinburg when you want to make a day trip to these locations’ entertainment attractions. The 30,000 people who call it home know it’s an affordable place to buy a home in one of Tennessee’s most desirable locations.

Downtown’s overhead sidewalks distinguish it among small towns, adding to its small-town charm; the pathways shade streets below and enhance access to second-level businesses and stores. Like the other mountain towns, it has pioneering roots, with the home of Davy Crockett being a top historic attraction. It loves a good festival, with a long-running farmer’s market, a craft brew festival, and Civil War re-enactments. It’s also a highly active town famous as a disc golf destination, with BMX racers, and for fishing at the nearby Cherokee Lake.

Local homes carried a median housing value of $244,463. As it’s become an affordable alternative in Sevier County housing, its home prices have maintained growth through 2023. The median sold prices in December 2024 reached $233,000, down 8% and reflecting the national market slowdown in median sale price growth. Additionally, the winter is in the “slow” time of year for local real estate in this part of Tennessee.

Johnson City

Yet another Appalachian mountain town in western Tennessee, homes here had a median value of $278,199. Owners paid a median of $1,222 for a monthly mortgage payment. In November 2024, median sold prices in Johnson City were at $285,000.

As the most populated city of the five most affordable, Johnson City is appealing for its high quality of life. Its access to outdoor recreation is a huge draw. From here, the 71,000 residents and seasonal visitors head to the hills for mountain biking, camping, fly fishing, and whitewater adventures. Outdoor recreational areas include Buffalo Mountain Park and the Tweetsie Trail. In town, they enjoy farm-to-table dining, craft brews, live music, and art galleries.

Additionally, the presence of Middle Tennessee State University in nearby Murfreesboro adds to the region’s educational appeal. Even though it’s a small town, it nurtures a high-ranking education system and has centers for health care and work. It has a number of cultural attractions, including the Johnson City Symphony and the Tipton Gallery. The blend of high quality of life, job opportunities, and outdoor activities lends it a special appeal.

Clarksville

Clarksville, Tennessee, is nicknamed the “Queen of the Cumberland.” Located in central Tennessee, it shares a border with Kentucky. While it’s an affordable option, it may not always be that way. Its reported a five-year price growth of 59%.

Affordability and high quality of life are two of the reasons Clarksville is on the rise. It’s leading Tennessee in population growth, currently at a rate of about 2.44% annually. People like its blend of Southern hospitality and modern amenities. Clarksville is home to Austin Peay State University, which increases its educational opportunities. The city has several stellar parks and outdoor recreational areas, including the Cumberland Riverwalk and the Clarksville Greenway.

Housing costs in Clarksville are still significantly lower than the national average, with a median sold price of $305,000 in November 2024. Located near military outposts, the town has a variety of options ranging from cozy apartments to spacious family homes. Additionally, the cost of groceries, utilities, and healthcare is budget-friendly, making it an ideal location for families, young professionals, and retirees alike.

With its thriving job market, excellent schools, and access to outdoor activities like hiking and boating along the Cumberland River, Clarksville provides its residents with affordable living options and a high quality of life.

Rockwood

Rockwood is a quaint and historic town nestled in Roane County, near the base of the Cumberland Plateau. Known for its southern charm and scenic beauty, Rockwood residents and visitors luxuriate in stunning views, especially of the surrounding mountains and Watts Bar Lake. The winding waterway is a popular spot for fishing, boating, and other water activities. All the surrounding lands appeal to the nature lover.

The town’s history is tied to the iron and coal industries. Explore historic sites like the Rockwood Railroad Depot and during local festivals. The annual Thunder Road Festival is especially popular. Downtown has an old-fashioned soda shop and antique stores. Rockwood is conveniently near Interstate 40, providing easy access to larger cities like Knoxville and Nashville.

The median home prices show you can have waterfront living. November 2024 reported a sale price of $225,000, with home prices trending upward year-over-year.

With its affordable housing, peaceful environment, and a strong sense of community, Rockwood is an appealing choice for those seeking a slower pace of life in a picturesque setting.

Housing Options and Costs in Tennessee

Tennessee offers a range of affordable housing options, from apartments and condos to single-family homes. The state also has a lower cost of living index, with a score of 87.3, compared to the national average of 100. This means that housing costs and other living expenses are lower in Tennessee compared to other states.

Those listed here rank among the most affordable cities in Tennessee. Most of them are small mountain towns located between Tennessee’s major cities. The low living costs contrast with major cities like the Nashville area, where the hot housing market has led to double-digit year-over-year pricing growth and hefty price tags. Additionally, demand has made suburbs like Franklin and Spring Hill some of the fastest-growing cities in the entire United States.

Affordable Homes in Tennessee

Of course, these are just the polled metro and micropolitan areas. Other affordable places to live and buy a home in Tennessee can easily be found, from the Mississippi Basin in the west to the northwestern tip of Tennessee. When choosing where to live, think about the amenities you want. Somewhere in Tennessee has the lifestyle you’re looking for, with a great cost for housing to boot.