Cost of Living in Memphis, TN

Cost-of-living breakdown

Memphis's cost of living indexes vs the US national average of 100:

Above 100 = more expensive than US average; below 100 = cheaper. Housing (67) is typically the biggest swing in any metro's overall cost of living.

Housing in Memphis

Rent for a typical 1-bedroom apartment ranges from $900 to $1,400 per month, depending on neighborhood and amenities. A 2-bedroom runs $1,200–$1,800/mo. The median single-family home sells for $225,000.

Rent consumes about 26.5% of the median household income — below the 30% HUD threshold for housing-burdened.

Salary and income

Median household income in the Memphis metro is $52,000. To live comfortably as a single adult here, plan on roughly $73,000/year — that covers a typical 1BR, occasional restaurants, and 10-15% savings. The MIT Living Wage Calculator estimates a single adult needs at least $33,000/year to cover basic necessities (food, housing, transport, healthcare, taxes — no luxuries or savings). A family of 4 with both adults working needs roughly $50,000/adult.

Taxes

• State income tax: None — Tennessee has no state income tax.
• Combined sales tax (state + local): 9.75%
• Effective property tax: 1.38% of home value annually. On the median $225,000 home, that's roughly $3,105/year.

Major industries and employers

Memphis's economy is anchored by:

• Logistics and distribution (FedEx World HQ — largest private employer)
• Healthcare (Baptist Memorial, Methodist Le Bonheur, St. Jude Children's Research Hospital)
• Music and culture (Beale Street, birthplace of blues, rock and roll, and soul music)
• Tourism (Elvis Presley's Graceland — major national attraction)
• Agriculture and food processing (Mississippi River port, cotton, soybean)

Pros of living in Memphis

• FedEx headquarters creates unique logistics career opportunities globally
• St. Jude Children's Research Hospital is a world-class pediatric cancer research employer
• Most affordable major Southern metro — median home under $230k with no income tax
• Birthplace of blues, soul, and rock and roll — unique cultural heritage (Sun Studio, Stax Records)
• Memphis BBQ (wet ribs, pulled pork) is nationally acclaimed

Cons of living in Memphis

• High violent crime rate — Memphis consistently ranks among the highest US cities
• 9.75% combined sales tax is one of the highest nationally
• Economy is heavily dependent on FedEx and has limited diversification
• Limited cultural infrastructure beyond music heritage
• Property taxes above Tennessee norms

Who tends to thrive in Memphis

• FedEx employees and logistics/supply chain professionals
• Pediatric oncology researchers and healthcare professionals at St. Jude
• Music industry professionals interested in roots music heritage
• Workers seeking maximum housing affordability in a Sun Belt city

And who tends to struggle:

• Workers who prioritize public safety — Memphis crime is a genuine concern
• High earners who want tax advantages (sales tax 9.75% is punishing)

Frequently asked questions about Memphis

Is FedEx really that important to Memphis?

Memphis would not be a nationally significant city without FedEx. The company is the largest private employer in the metro with 30,000+ local employees, operates the world's largest air cargo hub at Memphis International Airport (handles more freight than any US airport), and contributes billions annually to the local economy. If you work in logistics, supply chain, or aviation, Memphis is a legitimately important career hub.

What is St. Jude Children's Research Hospital?

St. Jude is one of the top children's cancer research centers in the world, founded in 1962 by entertainer Danny Thomas. It admits patients regardless of their ability to pay. The research campus employs thousands of scientists and medical professionals and is consistently in the top 5 nationally for pediatric oncology. It's one of Memphis's most respected institutions.

Is Memphis safe to live in?

Memphis requires careful neighborhood selection. East Memphis, Germantown, Collierville, and Bartlett are suburban areas with low crime and good schools. Midtown is generally safe with active community life. Downtown and Orange Mound have elevated crime. Memphis consistently ranks high for violent crime nationally — this is not a perception issue but a real pattern that requires awareness.

What is Memphis BBQ vs Nashville?

Memphis BBQ is distinct: wet and dry ribs (dry rubs are a Memphis specialty), slow-smoked pork shoulder, and tomato-based sauce with more vinegar than KC style. Charlie Vergos' Rendezvous and Payne's Bar-B-Que are institutions. Nashville doesn't have a BBQ tradition the way Memphis does — Nashville is the music city; Memphis is the BBQ city.