CALCMONEY // HOME AFFORDABILITY // TN
Find out how much home you can afford in Tennessee using local median home prices, current mortgage rates, and TN-specific property tax data.
Open Full Calculator$336,508
$2,034/mo
$268,362
$87,167/yr
| Median Home Price | $336,508 |
| Down Payment (20%) | $67,302 |
| Loan Amount | $269,206 |
| Monthly PI Payment | $1,748 |
| Monthly Property Tax | $146 |
| Monthly Insurance Est. | $140 |
| Total Monthly PITI | $2,034 |
| Required Gross Income (28% rule) | $87,167/yr |
| Max Affordable Price (28% rule) | $268,362 |
$11,778
$2,624/mo
Tennessee Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $336,508 | State median |
| Down Payment (20%) | $67,302 | Conventional |
| Monthly PITI (median home) | $2,034 | 6.76% rate |
| Required Income (28% rule) | $87,167 | Annual gross |
| Max Affordable Home | $268,362 | Based on median income |
| FHA Down Payment (3.5%) | $11,778 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Tennessee is $336,508, with a current 30-year fixed mortgage rate of 6.76%. A buyer putting 20% down on the median home would carry a loan of $269,206, resulting in a monthly principal and interest payment of $1,748. Once property taxes and insurance are added, total monthly housing costs reach $2,034.
Property taxes in Tennessee average 0.52%, well below the national average of 1.1%. On the median Tennessee home, property taxes add $146/month to total housing costs.
Tennessee has no state income tax, which increases effective take-home pay relative to higher-tax states and can improve overall buying power for TN residents.
Using the 28% rule, a household earning Tennessee's median income of $71,997/year can afford up to $1,680/month in total housing costs (principal, interest, taxes, and insurance). Based on Tennessee's current mortgage rate of 6.76% and property tax rate of 0.52%, that translates to a maximum affordable home price of approximately $268,362 with 20% down on a 30-year loan.
To comfortably afford the median Tennessee home priced at $336,508, you need an annual gross income of approximately $87,167. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,748, property taxes of $146, and insurance of $140) come to $2,034/month, which should not exceed 28% of your gross monthly income.
Tennessee's average property tax rate is 0.52%, which is well below the national average of 1.1%. On the median Tennessee home of $336,508, that means annual property taxes of $1,750, or $146/month. Because lenders include property taxes in your debt-to-income calculation, Tennessee's property taxes have a relatively modest impact on overall affordability.
The minimum down payment depends on your loan type. For an FHA loan, you can put down as little as 3.5% — on the median Tennessee home of $336,508, that is $11,778. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($67,302 on the median Tennessee home) lets you avoid private mortgage insurance (PMI), which can add 0.5%–1% to your annual loan cost. There are no Tennessee-specific minimum down payment requirements beyond federal guidelines.