The typical owner-occupied home in Tennessee is worth about $286,700, 14% below the national median of $332,700. Owners pay a median $1,442 a year in property taxes, about 0.50% of their home's value, lower than the national rate of 0.94%. The median household earns $69,595 a year, so the median home costs 4.1 times the median income (4.1 times for the U.S.). 67% of occupied homes here are lived in by their owners, and 58% of those owners still have a mortgage.
Tennessee at a glance
| Tennessee | U.S. | |
|---|---|---|
| Median home value | $286,700 | $332,700 |
| Median property tax paid per year | $1,442 | $3,119 |
| Property tax as a share of value | 0.50% | 0.94% |
| Median household income | $69,595 | $80,734 |
| Homes lived in by their owners | 67% | 65% |
| Owner homes with a mortgage | 58% | 61% |
| Median monthly costs, owners with a mortgage | $1,566 | $1,963 |
| Those costs as a share of the owners' income | 19.6% | 21.0% |
| Median rent | $1,189 | $1,413 |
| Rent as a share of renters' income | 29.5% | 30.6% |
| Median year homes were built | 1987 | 1980 |
| Vacant homes | 10.2% | 10.1% |
| Population | 7,066,383 | 334,922,499 |
What a typical home costs per month in Tennessee
At this week's average 30-year rate of 7.11%, buying the median Tennessee home of $286,700 with 20% down costs about $1,782 a month, including property taxes and insurance. With an FHA loan and 3.5% down, it's about $2,259, because the loan is bigger and FHA adds mortgage insurance.
Lenders usually want housing costs under about 28% of gross income, which means an income of roughly $76,365 for the 20%-down payment. That payment is 31% of the median Tennessee household income of $69,595; at that income and 20% down, the 28% guideline points to a home of about $261,000.
The median rent here is $1,189 a month, so owning the median home costs about $593 a month more than renting, before you count the equity you build and any tax benefits.
| Down payment | $57,340 |
|---|---|
| Loan amount | $229,360 |
| Principal and interest | $1,543 |
| Property taxes (0.50% a year) | $119 |
| Homeowners insurance (our estimate, 0.5% a year) | $119 |
| PMI | $0 |
| Total per month | $1,782 |
Change the numbers in the calculator
| Down payment | $10,034 |
|---|---|
| Loan amount | $281,507 |
| Principal and interest | $1,894 |
| Property taxes (0.50% a year) | $119 |
| Homeowners insurance (our estimate, 0.5% a year) | $119 |
| FHA mortgage insurance | $127 |
| Total per month | $2,259 |
Change the numbers in the calculator
Questions about home buying in Tennessee
What is the median home value in Tennessee?
About $286,700 for owner-occupied homes, according to the Census Bureau's 2020–2024 American Community Survey.
How much are property taxes in Tennessee?
Homeowners pay a median $1,442 a year, which is about 0.50% of the median home value. Your bill depends on your home's assessed value and local rates.
What income do you need to buy a home in Tennessee?
For the median home with 20% down at 7.11%, the payment is about $1,782 a month. Keeping that under 28% of gross income takes about $76,365 a year.
More about Tennessee
- Mortgage Refinance in Tennessee
- Debt Relief in Tennessee
- Home Equity Loans in Tennessee
- Guides and quotes for mortgage refinance on our sister site, MortgageRefinance.com
Sources: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates; Freddie Mac Primary Mortgage Market Survey, week of November 12, 2026. Estimates for small places have wide margins of error. About our data