Median rent is 13% lower in Chattanooga ($1,256/mo vs $1,440/mo). Buying is cheaper in Chattanooga, where the median home runs $283,200 versus $334,100. Households earn more in Chicago ($77,902 vs $64,523 a year). Taken together, Chattanooga is the more affordable choice with a cost index of 92.3 against 102.5 — about 10% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Cost of living verdict
Chattanooga is 10% cheaper overall
Cost of Living Index: 92.3 in Chattanooga vs 102.5 in Chicago (US national average = 100)
City A
Chattanooga, TN
City B
Chicago, IL
How much would you need to earn in Chicago, IL to maintain your standard of living from Chattanooga, TN?
Equivalent salary in Chicago, IL
$83,232
You'd need $8,232 more (11% higher).
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
Chattanooga
Tennessee
Chicago
Illinois
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
Median rent is modestly lower in Chattanooga at $1,256/mo compared to $1,440/mo in Chicago (13% gap). Median home values are within 15% of each other: $283,200 in Chattanooga and $334,100 in Chicago.
Metric
Chattanooga
Chicago
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.
Chattanooga
Income tax: N/A
Sales tax: N/A
Chicago
Income tax: N/A
Sales tax: N/A
Chicago has cleaner air on average: 31.0 AQI (Good) compared to 54.0 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 102.5).
Pick Chicago if you prioritize higher median household income ($77,902/yr).
Pick Chattanooga if you prioritize cheaper rent ($1,256/mo median).
Pick Chicago if you prioritize cleaner air quality (avg AQI 31.0).
Chattanooga is cheaper overall, with a cost of living index of 92.3 versus 102.5 (US average = 100). That means prices run about 10% lower in Chattanooga.
Median rent is $1,256/mo in Chattanooga, TN and $1,440/mo in Chicago, IL. Chattanooga, TN has the lower rent by about 13%.
Median household income is $64,523 in Chattanooga, TN and $77,902 in Chicago, IL. Chicago, IL has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Chicago, IL has better air quality on average: 31.0 AQI versus 54.0 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 Chattanooga, TN is equivalent to roughly $110,976 in Chicago, IL (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
