2026 cost of living data for Memphis. Overall cost index: 76 (national avg = 100).
See what your Memphis salary is worth in another city:
Memphis is one of the most affordable major cities in the United States, with an overall cost of living index of 76. This means living in Memphis is approximately 24% less expensive than the national average.
Housing costs are significantly below the national average, making it an attractive option for homebuyers and renters alike. The housing index for Memphis is 62, which means housing costs are 38% below the national average. This includes both rental prices and home purchase costs in the metropolitan area.
The median household income in Memphis is $41,228, with a population of approximately 633,104. The median household income is below the national average, which can make the cost of living feel more impactful for many residents.
The job market in Memphis is more limited compared to larger metropolitan areas, though opportunities exist in local industries and government sectors.
Beyond housing, daily expenses in Memphis are below the national average. Groceries and dining carry an index of 90, while transportation costs sit at 90. Healthcare expenses index at 88, and utilities come in at 86.
One of the financial advantages of living in Memphis is the favorable tax environment. With a tax index of 78, residents pay significantly less in state and local taxes compared to the national average.
Memphis enjoys generally pleasant weather, with seasonal variations that most residents find manageable.
Like many major cities, Memphis faces some safety challenges, though many neighborhoods remain safe and vibrant communities.
Memphis offers strong value for those looking to stretch their dollar further without sacrificing too much in terms of amenities and opportunities. With a fair job market and good weather, Memphis continues to attract new residents drawn by the favorable cost of living.
