Tennessee has a lot to offer, with a rich musical heritage, great weather, outdoor adventures, and more. But some cities are downright expensive: Brentwood has a typical home price of nearly $1.4 million.
Plus, Nashville was a pandemic hot spot; prices are now more than 45% above January 2020 levels.
Surprisingly, though, the 10 most affordable Tennessee towns offer homes below $250,000.
Have your eye on Tennessee? You may want to check out these cities.
Affordable Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Memphis | $142,190 |
| 2 | Dyersburg | $158,768 |
| 3 | Newport | $217,245 |
| 4 | Jackson | $219,756 |
| 5 | Elizabethton | $227,819 |
| 6 | Millington | $232,943 |
| 7 | Lawrenceburg | $235,453 |
| 8 | Greeneville | $237,567 |
| 9 | Bristol | $239,034 |
| 10 | Fayetteville | $246,018 |
1. Memphis - $142,190
A city that needs no introduction – and the most affordable on our list – is Memphis. The former home of the likes of Elvis, B.B. King, and Jerry Lee Lewis carries its musical heritage into the present day through the world-famous Sun Studio, the Memphis Music Hall of Fame, and countless other musical attractions. With estimated monthly mortgage payments of just $1,065, those who go "walking in Memphis" will soon realize how affordable it is to own a home near one of the world's artistic epicenters.
2. Dyersburg - $158,768
About 80 miles northeast of Memphis is Dyersburg, a much smaller town of around 16,000 according to the 2020 census. While there’s plenty to do recreationally, such as exploring its historic Court Square area, employment opportunities abound at companies like Hillshire Brands, Caterpillar, and others. Mortgage payments on the average home in Dyersburg are estimated at $1,190 per month.
3. Newport - $217,245
A small town of about 7,000, according to the U.S. Census Bureau, Newport is a vibrant area with job opportunities in the manufacturing, hospitality, and healthcare industries. The estimated monthly cost of homeownership here? Just $1,628.
4. Jackson - $219,756
Jackson is one of the larger metros on the list, with nearly 70,000 people calling the city home. This area offers a strong employment and economic base rooted in manufacturing, IT, and healthcare. Fun fact: Most believe the Johnny and June Carter Cash hit “Jackson” is about this Tennessee town, where the estimated monthly mortgage payment sits at $1,647.
5. Elizabethton - $227,819
The fifth most affordable city in Tennessee is Elizabethton. Historic Main Street is a major attraction, and the area is home to the state's oldest building: the Carter Mansion. Homebuyers who want to live in a historic, inviting city without breaking the bank will love Elizabethton and its estimated average mortgage costs of just $1,707 per month.
6. Millington - $232,943
A town of around 11,500, Millington is a suburb of Memphis. Employment in the area is buoyed by the Nava Support Activity Mid-South naval station, one of the largest employers in Tennessee. The cost to buy the average home in Millington? An estimated $1,746 per month.
7. Lawrenceburg - $235,453
From outdoor adventures to shopping and food, Lawrenceburg has a little for everyone. The cost of living is 22% lower than the U.S. average, too, according to tourism website Visit Lawrenceburg. Those looking for an affordable place to live – with an average estimated monthly mortgage payment of $1,764 – should give Lawrenceburg a visit.
8. Greeneville - $237,567
The birthplace of Davy Crockett, Greeneville, is home to a state park dedicated to the pioneer and politician. Home prices are affordable in the area, with the average home’s conventional mortgage payment running $1,780. Even more enticing? The fact that the entire town is geographically eligible for zero-down USDA loans.
9. Bristol - $239,034
NASCAR fans will love living in Bristol, as the Bristol Motor Speedway hosts major events each April and August, drawing 150,000 visitors from all 50 states. Not a race fan? Music lovers will be glad to know that the town was christened the “Birthplace of Country Music” by Congress in 1998. The average home in Bristol comes with an estimated monthly mortgage payment of $1,791.
10. Fayetteville - $246,018
Fayetteville is a small town with big value. With property prices under $250,000, plus entertainment and job opportunities, homebuyers should consider this Tennessee locale, where the average estimated housing cost sits at just $1,791 per month.
Get Pre-Approved for Your Tennessee Home
Many towns and cities across Tennessee are affordable for just about any budget. From musical Memphis to the high speeds of Bristol and its famous motor speedway, this state has something for everyone – and at a reasonable value. See what home price you qualify for by requesting your pre-approval today.
Methodology
To find the 10 most affordable housing markets in Tennessee, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
