Memphis, TN variant. This is a Memphis, TN-specific version of the Rent vs Buy 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 Rent vs Buy Calculator.
In Memphis, renting costs about $1,300/month while owning the $165,000 median home runs roughly $986/month all-in - the gap drives the rent-vs-buy decision.
Rent vs. buy in Memphis
Owning includes P&I (≈ $834), property tax (≈ $103), and insurance - about $986/month before maintenance, versus $1,300 to rent.
Buying wins when you stay long enough to amortize the $33,000 down payment and closing costs, and when appreciation plus equity outpace the rent you'd otherwise pay.
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: monthly comparison
Own ≈ $986/mo vs. rent $1,300/mo - a $314 savings to own. Factor in the $33,000 down payment and expected years in the home.
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
Is it better to rent or buy in Memphis?
Owning runs ≈ $986/month vs. $1,300 to rent. Buying favors longer stays that recover the $33,000 down payment and closing costs.
What's the median rent in Memphis?
About $1,300 per month.