Side-by-side comparison of home prices, mortgage payments, and housing costs between Memphis and Nashville, Tennessee. Using Tennessee's 0.56% property tax rate and $2,400/year insurance. Updated for 2026.
Memphis is significantly more affordable than Nashville, with homes priced 57% lower on average. That translates to $1,633/month in savings on your total housing payment. For budget-conscious buyers in Tennessee, Memphis offers a much more accessible path to homeownership.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI. Uses Tennessee's 0.56% property tax rate.
Buying in Memphis saves you approximately $1,633/month ($19,596/year) compared to Nashville, based on median home prices with identical loan terms.
Memphis is the better choice for first-time buyers, with a median price of $185K versus $435K in Nashville. That's $250K less to save for a down payment. You'd need roughly $6K for an FHA 3.5% down payment in Memphis, compared to $15K in Nashville. Tennessee offers the THDA Great Choice Home Loan program (Up to $25,000 DPA) which applies in both cities.
Memphis has the better price-to-rent ratio at 14.3x versus 21.6x in Nashville. A lower ratio generally signals better rental income relative to purchase price. Average rent in Memphis is $1,080/month on a $185K median home, making it a stronger candidate for buy-and-rent investors.
Nashville (pop. 715,884) offers more amenities, schools, and services typical of a larger city, while Memphis (pop. 633,104) may offer a quieter, more community-oriented lifestyle. Families on a budget may prefer Memphis, where lower housing costs free up more income for childcare, education, and savings.