How Much House Can I Afford in Tennessee? (2026)
Last updated: April 2026 · Source: Zillow, Freddie Mac, Tax Foundation
Quick Answer
At the Tennessee median income of $58,000/year, you can typically afford a home up to $232,000 (4× rule), or $174,000 conservatively (3× rule). The median home in Tennessee costs $335,000, so a household earning $83,750+ can afford the typical home.
Tennessee Housing & Mortgage Data
| Median Home Price | $335,000 |
| 30-Year Fixed Rate | 6.88%(State average, Apr 2026) |
| Property Tax Rate | 0.64%(Effective rate) |
| Avg HO Insurance | $2,000/yr ($167/mo) |
| Typical Down Payment | 10% ($33,500) |
| Median Household Income | $58,000/yr |
Key Facts for Tennessee
- ✓Tennessee median home price is $335,000 as of 2026
- ✓30-year fixed mortgage rates in Tennessee average 6.88%
- ✓Property taxes in Tennessee are 0.64% — near the national average of 1.10%
- ✓Homeowners insurance averages $2,000/year in Tennessee
- ✓A household earning $83,750/year can typically afford the median Tennessee home
More Tennessee Calculators
Frequently Asked Questions — Mortgage Affordability Calculator in Tennessee
- What income do I need to afford a home in Tennessee?
- Using the 28% front-end ratio rule: your mortgage payment (PITI) should not exceed 28% of gross monthly income. The Tennessee median home at $335,000 has a total monthly PITI of approximately $2,327. That implies a minimum gross income of $8,311/month.
- What is the debt-to-income ratio limit for mortgages in Tennessee?
- Most Tennessee lenders require a back-end DTI (all debts including the mortgage) of 43% or below for conventional loans. FHA allows up to 50% DTI with compensating factors. The front-end DTI (mortgage payment only) should ideally be below 28%. If you have $500/month in existing debt payments, your maximum mortgage payment is reduced accordingly.
- What is the average mortgage payment in Tennessee?
- The average monthly mortgage payment (principal + interest) in Tennessee is approximately $1,982 for a $301,500 loan at 6.88% over 30 years. Adding property tax ($179/mo) and homeowners insurance ($167/mo) brings total PITI to about $2,327/month.
- What credit score do I need for a mortgage in Tennessee?
- Most Tennessee lenders require a minimum 620 credit score for conventional loans and 580 for FHA loans (with 3.5% down). For the best rates in Tennessee, aim for 740+. A higher score can reduce your rate by 0.5–1.0%, saving $45,225 over the life of a 30-year loan.
- How much down payment is required to buy a home in Tennessee?
- You can buy a home in Tennessee with as little as 0% down (VA, USDA loans for eligible buyers), 3% down (conventional), or 3.5% down (FHA). On the Tennessee median home price of $335,000, a 20% down payment is $67,000 and lets you avoid PMI. Tennessee also has state-level down payment assistance programs for first-time buyers.
- What are current mortgage rates in Tennessee?
- Current 30-year fixed mortgage rates in Tennessee average 6.88% as of April 2026. 15-year fixed rates are typically 0.5–0.75% lower. Rates vary by lender, credit score, and loan-to-value ratio. Compare at least 3–5 lenders to ensure you get the best Tennessee mortgage rate.
- What is the property tax rate in Tennessee?
- Tennessee's effective property tax rate is 0.64%. On the Tennessee median home value of $335,000, annual property taxes are approximately $2,144 ($179/month). Property taxes in Tennessee are typically escrowed in your monthly mortgage payment.