A new study from financial technology company SmartAsset ranks the most affordable places to live in Tennessee. This is SmartAsset’s fifth annual study on the Most Affordable Places in America. These communities are ranked on an Affordability Index weighing property taxes, homeowners’ insurance fees and mortgage payments relative to income.
There’s a lot more to home affordability than the price a homebuyer agrees to pay the seller. To find the most affordable places to buy a home, SmartAsset took a holistic approach, considering closing costs, real estate taxes, homeowners insurance and mortgage rates in our analysis.
Specifically, they found the total cost over five years of these four expenses—closing costs, taxes, insurance and mortgage payments—for the average home in every county in the U.S., and every city with a population greater than 5,000. They then took that five-year cost as a proportion of median household income in each county and city to determine affordability.
The most affordable cities and counties were those in which total housing costs on an average house accounted for the smallest proportion of the median income.
Check out their interactive map here.
Most affordable places to live in Tennessee
|Rank||City||Avg. Closing Costs||Annual Property Tax||Annual Homeowner’s Insurance||Avg. Annual Mortgage Payment||Median Income||Affordability Index|
|3||La Follette, TN||$2,169||$481||$469||$2,761||$27,819||49.49|
|8||La Vergne, TN||$2,750||$1,232||$1,088||$6,403||$59,297||46.77|
|9||Green Hill, TN||$2,410||$1,385||$1,719||$10,119||$84,863||45.03|
|10||Middle Valley, TN||$2,171||$1,118||$1,248||$7,348||$62,711||44.92|