Median rent is 27% lower in Chattanooga ($1,256/mo vs $1,729/mo). Buying is cheaper in Chattanooga, where the median home runs $283,200 versus $555,300. Households earn more in Austin ($93,658 vs $64,523 a year). Taken together, Chattanooga is the more affordable choice with a cost index of 92.3 against 98.3 — about 6% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Austin, TX.
Cost of living verdict
Chattanooga is 6% cheaper overall
Cost of Living Index: 92.3 in Chattanooga vs 98.3 in Austin (US national average = 100)
City A
Austin, TX
City B
Chattanooga, TN
How much would you need to earn in Chattanooga, TN to maintain your standard of living from Austin, TX?
Equivalent salary in Chattanooga, TN
$70,478
You could earn $4,522 less (6% lower) and break even.
Based on BEA Regional Price Parity (cost index) for each metro area. This estimates overall purchasing power; it does not account for taxes or take-home pay differences.
Metric
Austin
Texas
Chattanooga
Tennessee
Population
Median Household Income
Annual
Median Gross Rent
Per month
Median Home Value
Cost of Living Index
US avg = 100
1BR Fair Market Rent
HUD FMR
2BR Fair Market Rent
HUD FMR
3BR Fair Market Rent
HUD FMR
Air Quality Index
Lower = cleaner
Top State Income Tax
Top marginal rate
State Sales Tax
Statewide base rate
Median Age
Years
✓ = better value · Sources: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Renters will find significantly cheaper housing in Chattanooga — median rent of $1,256/mo versus $1,729/mo in Austin, a 27% difference. Home buyers face a steeper market in Austin: the median home is $555,300 versus $283,200 in Chattanooga — 49% more expensive.
Metric
Austin
Chattanooga
Software Developer
Registered Nurse
Elementary Teacher
Electrician
Accountant
Higher wage highlighted · BLS OEWS 2023 (metro-level data)
State tax data is not yet available for these cities.
Austin
Income tax: N/A
Sales tax: N/A
Chattanooga
Income tax: N/A
Sales tax: N/A
Chattanooga has cleaner air on average: 54.0 AQI (Moderate) compared to 65.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Chattanooga if you prioritize lower overall cost of living (index 92.3 vs 98.3).
Pick Austin if you prioritize higher median household income ($93,658/yr).
Pick Chattanooga if you prioritize cheaper rent ($1,256/mo median).
Pick Chattanooga if you prioritize cleaner air quality (avg AQI 54.0).
Chattanooga is cheaper overall, with a cost of living index of 92.3 versus 98.3 (US average = 100). That means prices run about 6% lower in Chattanooga.
Median rent is $1,729/mo in Austin, TX and $1,256/mo in Chattanooga, TN. Chattanooga, TN has the lower rent by about 27%.
Median household income is $93,658 in Austin, TX and $64,523 in Chattanooga, TN. Austin, TX has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Chattanooga, TN has better air quality on average: 54.0 AQI versus 65.0 AQI. Both are EPA AirNow annual averages; lower is better.
State tax data is not yet available for one or both cities.
To maintain the same purchasing power, a salary of $100,000 in Austin, TX is equivalent to roughly $93,970 in Chattanooga, TN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: June 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
