Tennessee Rent Trends (2026)

Stable

Tennessee continues growth, especially Nashville metro

+5.8%
Year-over-Year
+45%
5-Year Change
$1,481
Current Avg 2BR
$1,567
Projected 2027

Tennessee Market Outlook: Stable

Tennessee has experienced significant rental growth, particularly in Nashville where migration has driven demand. Memphis maintains affordability, while Chattanooga offers mountain-city living.

Expect relatively stable rent prices

Key Factors

  • Cost of Living Index: 91 (below national avg)
  • Housing Index: 85
  • Metro Areas Tracked: 3
  • Rent Range: $1,274 - $1,730

Tennessee Rent History & Projections

2021 (Est.)
$1,021
5 years ago
2026 (Current)
$1,481
today
2027 (Proj.)
$1,567
+5.8%
2031 (Proj.)
$1,963
if trend continues

Note: Projections are estimates based on current trends and may vary based on economic conditions, policy changes, and market dynamics. Past performance does not guarantee future results.

Tennessee Cost of Living Breakdown

Below average with no income tax

91
Overall Index
85
Housing
98
Utilities
93
Groceries
92
Transportation

Index values: 100 = national average. Below 100 = cheaper than average. Above 100 = more expensive.

Tennessee Metro Areas by Rent

Compare rent across 3 Tennessee cities

CityStudio1 Bed2 Bed3 Bedvs State Avg
Nashville, TN$1,507$1,578$1,730$2,211+17%
Knoxville, TN$1,020$1,200$1,440$1,860-3%
Memphis, TN$1,060$1,154$1,274$1,683-14%

Tips for Tennessee Renters

Build Landlord Relationships

In stable markets, good tenant-landlord relationships can lead to minimal rent increases and better treatment over time.

Plan for Modest Increases

Even in stable markets, expect 2-4% annual increases. Budget accordingly and maintain good payment history for negotiating power.

Consider Alternatives

Tennessee's cheapest city (Memphis) offers 2BR at $1,274/mo vs $1,730/mo in Nashville.

Factor in Total Costs

Remember that Tennessee's cost of living index is 91. Lower rent plus lower overall costs means more purchasing power.