Median rent is 19% lower in Memphis ($1,123/mo vs $1,380/mo). Buying is cheaper in Memphis, where the median home runs $157,100 versus $315,200. Households earn more in Chicago ($75,134 vs $51,211 a year). Taken together, Memphis is the more affordable choice with a cost index of 91.8 against 105.7 — about 13% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Chicago, IL.
Quick verdict
Memphis is 13% cheaper overall
Cost index: 91.8 in Memphis vs 105.7 in Chicago (US average = 100)
City A
Chicago, IL
City B
Memphis, TN
How much would you need to earn in Memphis, TN to maintain your standard of living from Chicago, IL?
Equivalent salary in Memphis, TN
$65,142
You could earn $9,858 less (13% lower) and break even.
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
Chicago
Illinois
Memphis
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: US Census ACS, BEA RPP, HUD FMR, EPA AirNow, Tax Foundation
Median rent is modestly lower in Memphis at $1,123/mo compared to $1,380/mo in Chicago (19% gap). Home buyers face a steeper market in Chicago: the median home is $315,200 versus $157,100 in Memphis — 50% more expensive.
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 Memphis a clear advantage for high earners. Sales tax is 6.25% in Illinois and 7.00% in Tennessee; Chicago has the lower rate (local add-ons may apply in both).
Chicago
Income tax: 4.95%
Sales tax: 6.25%
Memphis
Income tax: None
Sales tax: 7.00%
Chicago has cleaner air on average: 21.0 AQI (Good) compared to 23.0 AQI (Good) in the other city. Lower AQI means cleaner, healthier air.
Pick Memphis if you prioritize lower overall cost of living (index 91.8 vs 105.7).
Pick Chicago if you prioritize higher median household income ($75,134/yr).
Pick Memphis if you prioritize cheaper rent ($1,123/mo median).
Pick Memphis if you prioritize no state income tax.
Is Chicago cheaper than Memphis?
Memphis is cheaper overall, with a cost of living index of 91.8 versus 105.7 (US average = 100). That means prices run about 13% lower in Memphis.
How much is rent in Chicago vs Memphis?
Median rent is $1,380/mo in Chicago, IL and $1,123/mo in Memphis, TN. Memphis, TN has the lower rent by about 19%.
Which has higher salaries — Chicago or Memphis?
Median household income is $75,134 in Chicago, IL and $51,211 in Memphis, TN. 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 23.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Chicago or Memphis?
Tennessee has no state income tax. Illinois has a top rate of 4.95%.
What salary do I need in Memphis to match my Chicago income?
To maintain the same purchasing power, a salary of $100,000 in Chicago, IL is equivalent to roughly $86,856 in Memphis, TN (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