In Tennessee, the median home costs $393K and the median household income is $72K/year. Find out how much house you can afford based on your income, debts, and down payment. Formula shown, sources cited — no account required.
A median home price of $393,000 against a median household income of $71,997 puts Tennessee's price-to-income ratio at roughly 5.5x — a stretch for first-time buyers, particularly as mortgage rates remain elevated. A 10% down payment on a median home means saving $39,300 before closing, plus approximately 1.5% in closing costs, another $5,900. The property tax rate of 0.71% is a genuine relief on the monthly payment side, adding only about $233 per month on a median-priced home. That lower property tax bill improves debt-to-income ratios compared to states with rates above 1.5%. The Great Choice Home Loan and Great Choice Plus Down Payment programs can reduce the cash required to close for qualifying buyers. Competition is sharpest in Nashville and its suburbs, while smaller cities offer more room to negotiate. Use a home affordability calculator with your actual income and debt load to find the price range where your monthly payment stays manageable.
How Much House Can You Afford in Tennessee?
Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With Tennessee's median income of $71,997/year ($6,000/month), that means a maximum housing payment of roughly $1,680/month.
At 6.51% over 30 years with a 10% down payment ($39,300), that monthly budget supports a purchase price of approximately $373,350–$393,000. The median home price in Tennessee is $393,000, which means housing is more affordable than the national average.