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$330,000
$2,071/mo
$201,232
$88,777/yr
| Median Home Price | $330,000 |
| Down Payment (20%) | $66,000 |
| Loan Amount | $264,000 |
| Monthly PI Payment | $1,739 |
| Monthly Property Tax | $195 |
| Monthly Insurance Est. | $138 |
| Total Monthly PITI | $2,071 |
| Required Gross Income (28% rule) | $88,777/yr |
| Max Affordable Price (28% rule) | $201,232 |
$11,550
$2,656/mo
Tennessee Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $330,000 | State median |
| Down Payment (20%) | $66,000 | Conventional |
| Monthly PITI (median home) | $2,071 | 6.9% rate |
| Required Income (28% rule) | $88,777 | Annual gross |
| Max Affordable Home | $201,232 | Based on median income |
| FHA Down Payment (3.5%) | $11,550 | Minimum FHA |
Monthly PITI includes principal, interest, property tax, and homeowners insurance.
The median home price in Tennessee is $330,000, with a current 30-year fixed mortgage rate of 6.9%. A buyer putting 20% down on the median home would carry a loan of $264,000, resulting in a monthly principal and interest payment of $1,739. Once property taxes and insurance are added, total monthly housing costs reach $2,071.
Property taxes in Tennessee average 0.71%, near the national average of 1.1%. On the median Tennessee home, property taxes add $195/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 $59,700/year can afford up to $1,393/month in total housing costs (principal, interest, taxes, and insurance). Based on Tennessee's current mortgage rate of 6.9% and property tax rate of 0.71%, that translates to a maximum affordable home price of approximately $201,232 with 20% down on a 30-year loan.
To comfortably afford the median Tennessee home priced at $330,000, you need an annual gross income of approximately $88,777. This is based on the standard 28% rule: your total monthly housing costs (principal and interest of $1,739, property taxes of $195, and insurance of $138) come to $2,071/month, which should not exceed 28% of your gross monthly income.
Tennessee's average property tax rate is 0.71%, which is near the national average of 1.1%. On the median Tennessee home of $330,000, that means annual property taxes of $2,343, or $195/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 $330,000, that is $11,550. Conventional loans typically require 5% down, though some programs allow 3%. Putting down 20% ($66,000 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.