Tennessee Homebuyer & Homeowner Resources

What stands out

The one number in Tennessee's data worth reading first

Property tax is the standout number here: Tennessee has the lowest effective property tax rate in the country, at just 0.46%. It's one of the few states where this line item is genuinely small.

Home prices by city

How far the Tennessee median actually stretches

Tennessee's statewide median of $313,544 moved down 2.8% over the past year, per Zillow Home Value Index, April 2026. That median blends markets that don't resemble each other: Brentwood runs highest among the state's major cities at $870,000 (Redfin estimate 2026), while Memphis is lowest at $162,000 (Zillow ZHVI 2026) — a 437% spread inside one state's own market.

Source: Zillow Home Value Index, April 2026 (www.zillow.com/home-values/47/tn) for the statewide figure; city figures cited individually above.

Compare a specific city's price against the statewide payment with the Mortgage Calculator.

Property tax, county by county

How Tennessee actually taxes your home

Property tax in Tennessee tops out in Shelby County (Memphis), where the effective rate runs 0.72%, and bottoms out in Pickett County at 0.3% — a 0.42-point spread inside one state. The statewide effective rate is 0.46% ($1,442/year on the median-priced home), which ranks Tennessee #46 of 51 nationally. On a $300,000 home, the gap between Shelby County and Pickett County alone is worth roughly $1,260/year, before either county's exemptions are applied.

Assessments here don't reset every year: Reappraisal every 4–6 years depending on county (4-year cycle for most urban counties; 6-year for rural). Residential property assessed at 25% of appraised value. A bill that looks stale for a year or two after a fast local run-up isn't a mistake — it's the cycle catching up.

Tennessee offers a homestead exemption for owner-occupied primary residences: Property Tax Relief for elderly (65+) and disabled homeowners with income below $31,600: state reimburses a portion of county taxes. Tax Freeze program available in many counties — freezes taxable value for qualifying seniors. Assessment ratio for residential property is 25% of appraised value. File through the state/county assessor's office — homestead exemptions are almost never applied automatically at closing.

Sources: Tax Foundation Property Taxes by State 2024 (taxfoundation.org/data/all/state/property-taxes-by-state-county) for the effective rate and county figures; www.tn.gov/comptroller/pa/property-tax-programs/property-tax-relief.html for exemption rules.

Estimate your own bill with the Property Tax Calculator, or see how it folds into your full payment with the Mortgage Calculator.

Closing costs, itemized

What you'll actually pay at the table in Tennessee

Tennessee's own standing here: Below average — very low transfer tax and no income tax make Tennessee a low-cost state overall. In dollar terms that's about 2.3% of the purchase price — roughly $7,211 on the state's median home.

Transfer tax: Tennessee Documentary Tax: $0.37 per $100 of consideration on the deed (0.37%). Tenn. Code Ann. 67-4-409 and the TN Dept. of Revenue name the GRANTEE (buyer) as the party who pays this tax — it is genuinely buyer-only, not seller-paid. Additionally, mortgage recordation tax of $0.115 per $100 on the loan amount (0.115%), also paid by buyer. Confirm the current rate with the state tax authority before closing — local add-on transfer taxes are common and this figure may not include them.

Tennessee does not require an attorney at closing — a title company or escrow agent can handle the transaction, though buyers are still free to hire an attorney for review at their own cost. Title insurance runs about $1,300 on the state's median home price, scaling with purchase price.

The 2.3% figure above covers lender fees, title work, recording, and the transfer tax detailed below — it does not include prepaid items collected at closing (the first months of property tax and insurance funding your escrow account, plus a per-diem of interest to the first payment date). Those prepaids appear as a separate line on the closing disclosure and scale with your specific loan amount and closing date, not with this state-level average.

Sources: ClosingCorp 2021 / Urban Institute 2025 (www.urban.org/urban-wire/why-do-closing-costs-differ-between-states) for the overall estimate; www.tn.gov/revenue/taxes/documentary-tax.html for the current transfer tax rate.

Get a full line-item breakdown for your own purchase price with the Closing Costs Calculator.

The income math

Salary it actually takes to buy in Tennessee

The income math below uses the same median home price as the rest of this page — $313,544, per Zillow Home Value Index, April 2026. A buyer putting 20% down on that home needs about $80,743/year in household income to qualify at standard debt-to-income limits (monthly PITI of $1,884). Stretching to a 10% down payment raises the bar to $97,800/year ($2,282/month PITI) — a smaller down payment does not make the home more affordable on a monthly basis; it usually makes it less affordable, once PMI is added.

Tennessee's median household income is $59,695/year. That leaves a gap of $21,048/year (35.3% short) between what the typical household earns and what the 20%-down math requires. That's a severe gap — the median household in Tennessee isn't close to affording the median-priced home at standard lending guidelines, and something has to give: a bigger down payment, a lower price point, or a market outside the state median.

The gap between the two down-payment scenarios is instructive: dropping from 20% to 10% down raises the required income by $17,057/year — a smaller upfront check does not translate into an easier qualification in Tennessee, because the extra loan balance plus PMI outweighs the cash saved at closing. (Derived: 10%-down required income minus 20%-down required income, both from the Home price: Zillow Home Value Index (same figure as this page's median home price, see housing block); household income: Census ACS 2024; PITI assumptions: 6.52% 30-yr fixed (Freddie Mac, June 2026), state effective property tax rate, state avg. homeowners insurance premium, 0.85% PMI (680-719 credit band) figures above.)

Put another way: at Tennessee's actual median household income, the home price that fits standard underwriting is $223,448 — 29% below the actual median home price.

Where affordability differs most inside Tennessee

Source: Home price: Zillow Home Value Index (same figure as this page's median home price, see housing block); household income: Census ACS 2024; PITI assumptions: 6.52% 30-yr fixed (Freddie Mac, June 2026), state effective property tax rate, state avg. homeowners insurance premium, 0.85% PMI (680-719 credit band), June 2026.

Check whether your own income clears the bar with the Mortgage Affordability Calculator and see your qualifying ratio with the DTI Calculator.

Down payment assistance

What Tennessee actually offers buyers

Tennessee's primary down payment assistance program is the Great Choice Plus DPA, administered by Tennessee Housing Development Agency (THDA). It is structured as a deferred loan — no payments while you own and occupy the home; the balance comes due on sale, refinance, or payoff of the first mortgage. Maximum assistance is capped at $7,500, and household income must fall at or below 80% of the area median income (AMI) to qualify. The purchase price cannot exceed $481,176.

The primary program above covers about 2.4% of Tennessee's median home price — a real dent in the down payment, though most buyers will still need to bring some of their own cash. (Derived: primary program's max assistance ÷ Tennessee's median home price, both cited above.) Apply directly through the agency — www.thda.org/homebuyers — rather than through a third party; funding availability changes without notice, so the agency's own page is the only reliable source for whether it's currently open.

Other Tennessee programs worth stacking

• Hardest Hit Fund (HHF) Targeted Areas — a forgivable loan — the balance is forgiven over time as long as you stay in the home, up to $15,000. Eligible buyers can generally stack this with the primary program above.

Source: State HFA official website, June 2026. Program terms change with agency funding cycles — confirm current limits on the agency page before budgeting around a specific dollar figure.

Run the numbers with this assistance folded in using the Down Payment Savings Calculator and check how it moves your required income with the Mortgage Affordability Calculator.

Insurance & climate exposure

What actually drives your premium in Tennessee

The climate risks behind Tennessee's homeowners insurance rate: tornadoes (Tennessee averages 32 tornadoes/year; Nashville 2020 and 2023 outbreaks caused major damage); flooding (Cumberland, Tennessee, and Mississippi river systems; Nashville 2010 flood a benchmark event); severe hailstorms (Middle Tennessee in hail belt); ice storms (eastern Tennessee mountains).

The average $300,000 dwelling homeowners premium in Tennessee is $3,198/year, per Insurance.com — Average homeowners insurance rates by state (Rate Analysis 2026) · $300,000 dwelling. This is the same figure used at the top of this page and in the insurance summary card above — one number, one basis, used consistently everywhere on this page.

Separately, this state's insurer-reported data (not the figure above) ranks Tennessee #17 nationally for homeowners insurance cost and shows premiums moving roughly 6% over the past year. Carriers here underwrite primarily against Tornadoes, Flash flooding, Hail storms.

Where in Tennessee you pay more — or less

These county figures come from the same insurer-reported series as the rank above, not from Insurance.com — Average homeowners insurance rates by state (Rate Analysis 2026) · $300,000 dwelling — they show relative spread within the state, and shouldn't be averaged against the statewide premium quoted above.

Premium source: Insurance.com — Average homeowners insurance rates by state (Rate Analysis 2026) · $300,000 dwelling. Rank, YoY change, risk factors, and county breakdown source: Insurance.com 2026; NAIC Homeowners Insurance Report 2024, January 2026 — a separate series from the premium figure above.

Model insurance into your full monthly cost with the Home Insurance Cost Calculator and see the whole picture, taxes included, with the Mortgage Calculator.

Flood risk & flood insurance

Flood exposure in Tennessee

FEMA classifies statewide flood risk in Tennessee as moderate — moderate — worth checking your specific zone before waiving coverage. There are currently 41,000 active NFIP policies in the state, but only about 1.8% of homes carry flood coverage of any kind — a coverage gap that shows up after every major flood event, not before.

The average NFIP premium in Tennessee runs $889/year. Private flood insurance is also available here and can undercut NFIP pricing for lower-risk properties, so it's worth quoting both.

Highest-risk areas: Cumberland River corridor (Davidson County — Nashville); Tennessee River communities (Humphreys, Perry, Decatur counties); Harpeth River watershed (Williamson, Cheatham counties); Mississippi River border (Shelby County — Memphis area); Nolichucky and French Broad Rivers (East Tennessee). Lenders require flood insurance as a mortgage condition in FEMA zones Zone A, Zone AE — coverage isn't optional if the property sits in one of these.

Tennessee has no state-run flood insurance backstop — NFIP and the private market are the only coverage options here.

Recent loss history: The 2010 Nashville flood — called a 1,000-year event — caused $2B in damage and killed 21 people. The Waverly (Humphreys County) flash flood of 2021 killed 20 people in a matter of hours from a storm that dropped 17 inches of rain. Hurricane Helene (2024) caused significant flooding in East Tennessee.

Source: FEMA NFIP State Profiles 2025 / ValuePenguin NFIP Study 2024, June 2026.

Price a policy for your specific coverage level with the Flood Insurance Cost Calculator, and check whether a property's tax history hints at a flood-prone parcel with the Property Tax Calculator.

HOA fees

How common HOAs are in Tennessee

About 28% of Tennessee homes report an HOA, per the Census Bureau's American Housing Survey — averaging $185/month. Tennessee doesn't have the kind of dense HOA/condo market this dataset tracks in detail state law for, so treat that figure as a rough statewide average rather than a market you need to research county by county; a specific listing's HOA disclosure will always be the more reliable number.

Source: Census American Housing Survey 2023 (www.census.gov/programs-surveys/ahs.html).

Build the fee into your monthly budget with the Mortgage Calculator, and check how it affects loan qualification with the DTI Calculator.

Maintenance & utilities

Upkeep costs specific to Tennessee's climate

Standard guidance budgets 1.5% of home value per year for maintenance — about $4,703/year ($392/month) on Tennessee's median-priced home. What actually drives that number here: high humidity in summer drives mold growth and HVAC wear across most of the state; tornado risk requires periodic inspection of roofing, windows, and structural connections.

Two assets carry most of that reserve: an HVAC system, which runs 12-16 years (hot humid summers drive heavy cooling load; heat pumps common), and a roof, which runs 20-25 years (tornado and hail risk are primary concerns; impact-resistant shingles recommended). Budget the shorter of the two into your reserve first, rather than treating the monthly maintenance figure as the only cost.

Utilities add another $210/month on average — $148 electric and $62 gas — on top of the mortgage, tax, insurance, and maintenance figures above.

Sources: Fannie Mae 1-2% guideline; Bankrate Hidden Costs Study 2025 for maintenance; U.S. Energy Information Administration — TVA power keeps electric rates below Southeast average (www.eia.gov/consumption/residential) for utilities.

Price a specific repair or replacement with the Home Renovation Cost Calculator or the New Roof Installation Cost Calculator.

Rent vs. buy, by city

Where buying beats renting in Tennessee

Statewide, Tennessee's price-to-rent ratio is 18.0 against a median monthly rent of $1,450, putting the modeled break-even — where cumulative ownership costs cross what renting would have cost — around 3.8 years. Moderate — Nashville is renter-neutral at ~25 PTR due to rapid price appreciation; Memphis and Chattanooga strongly favor buying.

The statewide ratio hides real variation between Tennessee's own metro markets:

Memphis has the lowest ratio in the state at 9.4 — the strongest buy case of Tennessee's major metros — while Nashville runs highest at 25.2, where renting keeps more cash flexible for a longer stretch.

Source: Census ACS 2023 / Baselane Research 2025. A price-to-rent ratio under roughly 15 generally favors buying; above roughly 21, renting; the range between is a close call that depends on how long you plan to stay.

Run your own break-even year with the Rent vs. Buy Calculator.

Loan limits & the full monthly breakdown

What the mortgage math looks like in Tennessee

The 2026 conforming loan limit in Tennessee is $832,750 statewide, with no high-cost-area exception. Borrow above that and you're in jumbo-loan territory, with different underwriting and typically a higher rate. The 30-year rate used in these estimates is 6.4%, per Freddie Mac PMMS, May 2026 (www.freddiemac.com/pmms) — check the live rate before locking, since Freddie Mac publishes a fresh figure every week.

Where the Tennessee median-home payment actually goes

On the $313,544 median home with 20% down ( $250,835 loan), principal and interest is $1,567/month — but that's only 63% of the true monthly cost. Property tax adds $120, insurance $197, maintenance $392, and utilities $210 — bringing the true monthly cost to $2,486. True monthly cost is 59% higher than mortgage alone — low property tax keeps hidden costs modest..

First-time buyer mortgage programs in Tennessee

• Great Choice Home Loan (Tennessee Housing Development Agency (THDA)) — 30-year fixed-rate FHA, VA, USDA, or conventional mortgage at competitive rates. Up to $832,750, minimum 3% down. Income limit: Up to $125,000 depending on household size and county. Must not have owned a primary residence in the past 3 years; minimum 640 credit score Available through THDA-approved lenders statewide; homebuyer education required..
• Great Choice Plus Down Payment Assistance (Tennessee Housing Development Agency (THDA)) — Deferred second mortgage — 0% interest, no monthly payments. Up to $7,500. Deferred — due on sale, refinance, or payoff of first mortgage; 30-year term Income limit: Same as Great Choice Home Loan income limits. $7,500 for down payment and/or closing costs; must be paired with Great Choice first mortgage..

Loan limit source: www.fhfa.gov/. Rate source: Freddie Mac PMMS, May 2026.

Model your own price point with the Mortgage Calculator or check FHA-specific numbers with the FHA Loan Calculator.

Sources

Where every number on this page comes from

This page draws on 12 distinct primary sources for Tennessee — government tax and housing finance agencies, federal rate and loan-limit publishers, and industry cost surveys — each cited at the point it's used above and listed again here with the period the figure reflects. Construction, insurance, and rate data move; check the linked source directly before making a purchase decision on an older figure.

• Median home price — www.zillow.com/home-values/47/tn (2026-Q2)
• Property tax rates & exemptions — taxfoundation.org/data/all/state/property-taxes-by-state-county (Tax Foundation Property Taxes by State 2024)
• Homestead exemption rules — www.tn.gov/comptroller/pa/property-tax-programs/property-tax-relief.html (Tax Foundation Property Taxes by State 2024)
• Homeowners insurance rates — www.insurance.com/home-and-renters-insurance/home-insurance-basics/average-homeowners-insurance-rates-by-state (Insurance.com Rate Analysis 2026)
• Closing cost benchmarks — www.urban.org/urban-wire/why-do-closing-costs-differ-between-states (ClosingCorp 2021 / Urban Institute 2025)
• Transfer tax rules — www.tn.gov/revenue/taxes/documentary-tax.html (ClosingCorp 2021 / Urban Institute 2025)
• Utility costs — www.eia.gov/consumption/residential (U.S. Energy Information Administration — TVA power keeps electric rates below Southeast average)
• HOA prevalence (Census AHS) — www.census.gov/programs-surveys/ahs.html (Census American Housing Survey 2023)
• 30-year mortgage rate — www.freddiemac.com/pmms (Freddie Mac PMMS, May 2026)
• Conforming loan limit — www.fhfa.gov (FHFA)
• Down payment assistance program — www.thda.org (June 2026)
• Great Choice Home Loan — www.thda.org/homebuyers (2026-Q2)