Median rent is 16% lower in Chattanooga ($1,155/mo vs $1,380/mo). Buying is cheaper in Chattanooga, where the median home runs $259,200 versus $315,200. Households earn more in Chicago ($75,134 vs $61,028 a year). Taken together, Chattanooga is the more affordable choice with a cost index of 92.5 against 105.7 — about 12% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Quick verdict
Chattanooga is 12% cheaper overall
Cost index: 92.5 in Chattanooga vs 105.7 in Chicago (US 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
$85,674
You'd need $10,674 more (14% higher).
Based on BEA Regional Price Parity (cost index) for each city's metro area. A rough estimate of overall purchasing power, not tax or take-home pay.
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: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Median rent is modestly lower in Chattanooga at $1,155/mo compared to $1,380/mo in Chicago (16% gap). Median home values are within 18% of each other: $259,200 in Chattanooga and $315,200 in Chicago.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
Tennessee has no state income tax, while Illinois tops out at 4.95% — giving Chattanooga a clear advantage for high earners. Sales tax is 7.00% in Tennessee and 6.25% in Illinois; Chicago has the lower rate (local add-ons may apply in both).
Chattanooga
Income tax: None
Sales tax: 7.00%
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Chicago has cleaner air on average: 21.0 AQI (Good) compared to 64.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Chattanooga if you prioritize lower overall cost of living (index 92.5 vs 105.7).
Pick Chicago if you prioritize higher median household income ($75,134/yr).
Pick Chattanooga if you prioritize cheaper rent ($1,155/mo median).
Pick Chicago if you prioritize cleaner air quality (avg AQI 21.0).
Is Chattanooga cheaper than Chicago?
Chattanooga is cheaper overall, with a cost of living index of 92.5 versus 105.7 (US average = 100). That means prices run about 12% lower in Chattanooga.
How much is rent in Chattanooga vs Chicago?
Median rent is $1,155/mo in Chattanooga, TN and $1,380/mo in Chicago, IL. Chattanooga, TN has the lower rent by about 16%.
Which has higher salaries — Chattanooga or Chicago?
Median household income is $61,028 in Chattanooga, TN and $75,134 in Chicago, IL. Chicago, IL has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Which city has better air quality?
Chicago, IL has better air quality on average: 21.0 AQI versus 64.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Chattanooga or Chicago?
Tennessee has no state income tax. Illinois has a top rate of 4.95%.
What salary do I need in Chicago to match my Chattanooga income?
To maintain the same purchasing power, a salary of $100,000 in Chattanooga, TN is equivalent to roughly $114,232 in Chicago, IL (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2024 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology