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Tennessee home affordability calculator

The median Tennessee household earns about $68,000 a year, and the median home costs about $320,000 — 4.7 times income. With 10% down, no other debts, and the current 7.32% average 30-year rate (Freddie Mac, week of October 22, 2026), standard lending ratios support a home of about $213,387 , roughly $106,613 short of the median. The calculator is pre-filled with those figures — replace them with yours.

$213,387 max home price

Max loan amount
$181,387
Housing payment budget
$1,596
P&I budget
$1,246
Bound by
front-end ratio

Uses the 28% front-end / 36% back-end DTI guidelines. Lenders vary.

How it works

Lenders cap the full housing payment — principal, interest, property tax, insurance — near 28% of gross monthly income, and all debt payments near 36%. In Tennessee, property tax at about 0.66% of value plus roughly $2,100 a year of homeowners insurance come to about $351 a month on the median home, and that comes out of the 28% budget before anything goes to the loan. On the median income the housing budget is about $1,596 a month, leaving $1,246 for principal and interest.

Homes in Tennessee spend about 45 days on the market on average. Tennessee has no state income tax and a below-average property tax rate, though its combined state-and-local sales tax is among the highest in the country. Nashville has led the state's price growth.

Frequently asked questions

How much house can I afford in Tennessee on the median income?
On Tennessee's median household income of about $68,000, with no other debts, 10% down, and a 7.32% 30-year rate, the 28% housing guideline supports a home of roughly $213,387. That's about $106,613 below the $320,000 median home price.
What income do I need to buy a median-priced home in Tennessee?
Tennessee's median home costs about $320,000 — 4.7 times the median household income. Lenders' 28% front-end rule means the full payment, including about $351 a month in property tax and insurance, needs to fit inside 28% of gross monthly income. Try the calculator with your own income and down payment.
How much do property tax and insurance add in Tennessee?
On the median home, Tennessee's 0.66% effective property tax rate and about $2,100 a year in homeowners insurance come to roughly $351 a month — money that comes out of the housing budget before any goes to principal and interest.
Does Tennessee's income tax affect how much house I can afford?
Not directly — lenders qualify you on gross income. But Tennessee doesn't tax wages, so more of each paycheck is left for the payment than in an income-tax state.

Learn more: How much house can I afford?

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