Mortgage Affordability Calculator for Tennessee (TN) — Free Calculator

Buying a Home in Tennessee: What You Can Afford

The median home value in Tennessee is $310,000. Nashville and suburbs (Williamson, Rutherford, Wilson counties) have seen 40-60% appreciation since 2020. Knoxville has also emerged as a top relocation destination. Memphis remains the state's most affordable major market.

Conforming Loan Limits in Tennessee

The conforming loan limit in Tennessee is $726,200. No Tennessee counties currently qualify for high-cost conforming limits. Loans above this threshold are considered jumbo loans and typically carry stricter qualification requirements and slightly higher rates.

Property Taxes to Budget For

Beyond your mortgage payment, budget for Tennessee's property taxes: the effective rate is 0.66%, meaning a home at the median value generates about $1,220/year in taxes. This is a real cost that lenders include in your debt-to-income (DTI) calculation.

Closing Costs in Tennessee

Buyers typically pay around $2,500 in closing costs in Tennessee. Tennessee charges a transfer tax of $0.37/$100 of value (a deed tax), which is very low. Overall closing costs are among the lowest in the Southeast. Factor this into your upfront cash requirement alongside your down payment.

Data: Tax Foundation (2024), US Census Bureau ACS 2023, Zillow, ATTOM Data Solutions. Updated 2024–2025. Figures reflect state averages — consult a licensed professional for personalized advice.

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Frequently Asked Questions

What is the median home price in Tennessee?

The median home value in Tennessee is $310,000. Nashville and suburbs (Williamson, Rutherford, Wilson counties) have seen 40-60% appreciation since 2020. Knoxville has also emerged as a top relocation destination. Memphis remains the state's most affordable major market.

What is the conforming loan limit in Tennessee?

The conforming loan limit in most of Tennessee is $726,200. No Tennessee counties currently qualify for high-cost conforming limits.

How much are property taxes in Tennessee?

Tennessee's effective property tax rate is 0.66%, with an average annual bill of $1,220. Lenders include property taxes in your monthly PITI payment and DTI calculation.

How much do I need for a down payment in Tennessee?

For a home at Tennessee's median value of $310,000, a 20% conventional down payment is $62,000, and a 3.5% FHA down payment is $10,900. Budget an additional $2,500 for closing costs.