MemphisMoney Index August 2026
"Low cost, no state tax."
Memphis — Money Index — Key Facts
- Cost of Living: 85. Memphis is roughly 15% cheaper than the typical US city. A $75k paycheck here spends like $88k somewhere average.
- 11% Savings Rate. Memphis households save about 11% of income — close to the US average.
- Financial Stress: 58/100. Money stress in Memphis sits at 58/100 — close to the national norm.
- 48% Own Their Home. Only 48% of Memphis households own — well below the US average of ~65%. Most residents are still renting.
- Median Household: $48k. Memphis households earn about $48k — roughly 36% below the US average.
- Memphis Quirk. Memphis's housing market is one of the lowest median-priced of the top 40 US metros.
- 6% of Land Is Parks. Only about 6% of Memphis's land is parkland — well below the big-city median. Outdoor recreation costs more here.
- Happiness Score: 62/100. Residents rate life in Memphis a 62/100 — roughly the US average.
- 23-Minute Commute. Memphis's one-way commute is just 23 minutes — 4 minutes shorter than the US average. That's ~176 hours a year behind the wheel instead of ~207.
- Work-Life Balance: 58/100. Memphis scores 58/100 on work-life balance — average for a major US city.
Memphis offers the rare combo of no state income tax and very low housing costs.
With a median household income of ~$48k, a 11% savings rate, and a cost-of-living index of 85, Memphis ranks #38 of 50 US cities in our overall money index.
Green space & commute
Two underrated money levers: how long you spend getting to work, and how much nature you can reach without paying for it.
Only ~6% of Memphis's land is parkland — below the big-city median. Free outdoor recreation is scarcer here.
- • Source: Trust for Public Land ParkScore
- • Parks lower stress and lift nearby property values
- • Free recreation = zero-cost lifestyle upgrade
Memphis's average commute (~23 min one-way) is close to the US average of ~27 minutes.
- • Source: US Census ACS mean one-way travel time
- • Owning a car runs ~$10k/year on average in the US
- • 10 fewer commute minutes/day ≈ 80 hours back per year
Typical Memphis household budget
Modeled split of $100 of after-tax income, scaled to Memphis's cost of living and savings rate.
How Memphis feels about money
Four Memphis money truths
Memphis's savings rate runs 11% — automate even one extra percentage point and you compound serious money over a decade.
Memphis is cheaper than the US average — your paycheck stretches noticeably further than in coastal metros.
Owning unlocks fixed housing costs and equity. Renters here can still build wealth — just channel the difference into index funds and a high-yield savings account.
Tennessee residents in Memphis report a 62/100 happiness score with stress at 58/100 — money habits and lifestyle here track that mix closely.
"Memphis's housing market is one of the lowest median-priced of the top 40 US metros."
Money lessons from Memphis
- 1
No state tax + cheap homes = leverage
- 2
Save 20% even on modest pay
- 3
Be your own bank in emergencies
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Memphis money FAQ
Is Memphis, Tennessee a good city for saving money?+
Memphis households save about 11% of income, with a happiness score of 62/100 and a work-life balance score of 58/100. Memphis offers the rare combo of no state income tax and very low housing costs.
What is the median household income in Memphis?+
The median household income in Memphis, Tennessee is roughly $48,000 per year. About 42% of households have a 3-month emergency fund.
How affordable is Memphis?+
Memphis's cost of living index sits at 85 (100 = US average). Homeownership stands at 48%.
How long is the average commute in Memphis?+
Memphis's average commute (~23 min one-way) is close to the US average of ~27 minutes.
How much urban green space does Memphis have?+
Only ~6% of Memphis's land is parkland — below the big-city median. Free outdoor recreation is scarcer here.
What money personality fits Memphis?+
The Saver — Frugal by nature; small wins compound into big wealth.
What's surprising about money in Memphis?+
Memphis's housing market is one of the lowest median-priced of the top 40 US metros.
