Memphis, TN variant. This is a Memphis, TN-specific version of the Home Affordability Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Home Affordability Calculator.
Affording a home in Memphis pits the $49,978 median income against a $165,000 median price - a price-to-income ratio of 3.3x.
Can you afford Memphis?
The 28% rule caps housing at $1,166/month on the local median income, supporting roughly $230,623 in price - versus the $165,000 Memphis median.
Memphis is relatively attainable on the local median income.
About Memphis, TN
Memphis residents pay no state or city income tax, since Tennessee does not impose a personal income tax on wages.
Memphis is one of the more affordable large-city housing markets in the country, with low home prices and rents.
Memphis's economy is anchored by logistics and distribution, serving as a major national shipping and freight hub.
Worked example: max price on $49,978
28% of $49,978 ÷ 12 ≈ $1,166/month supports about $230,623 at 6.5% with 20% down - compared with the $165,000 median.
Quick reference
- Median home value: $165,000
- Median rent: $1,300/mo
- Median household income: $49,978
- Local sales tax: 9.75%
- Effective property tax rate: 0.75%
- Cost of living index: 84 (US avg = 100)
Frequently Asked Questions
What income do I need to buy in Memphis?
To afford the $165,000 median home, you'd typically need well above the $49,978 local median income at current rates.
What is the price-to-income ratio in Memphis?
About 3.3x (median home ÷ median income).