A new national study has found that Tennessee remains one of the more affordable states for comfortable living, with Memphis and Nashville ranking among the least expensive major U.S. cities. However, the research also shows that the income required to maintain a comfortable lifestyle is still far above what most households in those cities currently earn.
The findings come from a Visual Capitalist analysis that used data from SmartAsset, based on the MIT Living Wage Calculator, which was updated in February 2026.
Study Used the 50/30/20 Budgeting Rule
Researchers estimated the annual household income needed to live comfortably by applying the widely used 50/30/20 budgeting framework, which allocates:
- 50% of income for essential expenses such as housing, food, transportation, and utilities.
- 30% for discretionary spending, including entertainment, travel, and dining out.
- 20% for savings, investments, and debt repayment.
Using this formula, the study compared the 56 largest cities in the United States to determine where households need the most—and the least—income to maintain a comfortable standard of living.
Memphis Among the Most Affordable Major Cities
According to the study, Memphis ranked as the second-least expensive major city in the nation for comfortable living.
A household in Memphis would need an annual income of $193,939 to meet the study’s definition of living comfortably…