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Renting vs Buying in Tennessee

If you’re moving to Tennessee, one of the biggest decisions you’ll face is whether to rent or buy a home. With rising home prices, changing interest rates, and a growing rental market, there is no one-size-fits-all answer. This guide breaks down the pros and cons of renting vs buying in Tennessee, compares costs, and helps you decide which option is best based on your lifestyle, finances, and long-term plans.
Moving to Tennessee? This guide quickly compares renting vs. buying to help you choose what fits your budget, lifestyle, and future plans.

Renting vs Buying in Tennessee

Tennessee is attractive for both renters and buyers due to:
  • No state income tax
  • Affordable housing compared to national averages
  • Strong job growth
  • Diverse cities and lifestyles
Many people relocating to Tennessee choose to rent first, then buy once they know the area.

Is Tennessee a Good State to Rent or Buy?

Tennessee is attractive for both renters and buyers due to:

No state income tax

Keep more of your earnings

Affordable Housing

Below national averages

Strong job growth

Expanding opportunities

Diverse Cities

Find your perfect fit

Compare Your Options

Renting in Tennessee

Pros of Renting

  • Lower upfront costs
  • Flexibility to move between cities or neighborhoods
  • No responsibility for maintenance or repairs
  • Easier option for people relocating from out of state
  • Ideal for short-term or uncertain plans

Especially Common For:

  • New residents
  • Remote workers testing locations
  • Families waiting for the right home
  • Buyers waiting on interest rates

Cons of Renting

  • Monthly payments do not build equity
  • Rent increases over time
  • Limited ability to customize the home
  • Less long-term stability

Typical Monthly Costs

  • 2-bedroom apartment: $1,100–$1,700
  • Utilities may be partially included
  • No maintenance costs
Browse Rentals in Tennessee →

Buying in Tennessee

Pros of buying

  • Build equity over time
  • Lock in monthly housing costs
  • Take advantage of low property taxes
  • Benefit from long-term appreciation
  • Greater freedom to customize
Tennessee’s lack of state income tax makes homeownership especially attractive for long-term residents.

Cons of buying

  • Higher upfront costs (down payment, closing costs)
  • Maintenance and repair responsibilities
  • Less flexibility to move
  • Mortgage rates impact affordability

Typical Monthly Costs

  • Mortgage payment depends on price, rate, and down payment
  • Property taxes are low
  • Homeowners insurance required
  • Maintenance costs apply
Buying makes the most sense if you plan to stay at least 3–5 years. Shape
View Homes for Sale in Tennessee →

Renting vs Buying by Region

Tennessee offers diverse markets across its three main regions, each with unique opportunities.

East Tennessee

Knoxville, Johnson City, Chattanooga
  • Renting is very affordable
  • Buying offers strong value and lower prices

Middle Tennessee

Nashville, Franklin, Murfreesboro
  • Renting often cheaper short-term
  • Buying offers long-term appreciation

West Tennessee

Memphis, Jackson
  • Extremely affordable rent
  • Buying offers strong value and lower prices

Making the Right Decision

When Renting First Makes Sense

Consider renting first if you want flexibility and time to learn the area.
  • You’re new to Tennessee
  • You’re unsure which city fits your lifestyle
  • You’re waiting for market conditions to change
  • You want flexibility
Many people rent for 6–24 months, then purchase once they’re comfortable.

When Buying Makes Sense

Buying is ideal if you’re ready to commit and build long-term equity.
  • You plan to stay long-term
  • You want stable housing costs
  • You want to build equity
  • You want flexibility
Homeownership is especially attractive in Tennessee due to low property taxes and no income tax.

The Smart Tennessee Strategy: Rent, Then Buy

For many people moving to Tennessee, the best strategy is to start by renting short-term, learn the city and neighborhoods, then buy with confidence.
This reduces risk and leads to better long-term decisions.
Connect With a Tennessee Realtor →

Explore Your Options in Tennessee

Browse Rentals

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Homes for Sale

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Explore Cities

Learn about Tennessee's neighborhoods

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Final Thoughts

Tennessee offers strong opportunities for both renters and buyers. The right choice depends on your timeline, budget, and lifestyle goals.
Whether you rent or buy first, Tennessee remains one of the best states in the country to put down roots.