Median rent is 20% lower in Memphis ($1,181/mo vs $1,472/mo). Buying is cheaper in Memphis, where the median home runs $169,000 versus $320,700. Households earn more in Dallas ($70,518 vs $51,736 a year). Taken together, Memphis is the more affordable choice with a cost index of 91.9 against 102.5 — about 10% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Dallas, TX.
Cost of living verdict
Memphis is 10% cheaper overall
Cost of Living Index: 91.9 in Memphis vs 102.5 in Dallas (US national average = 100)
City A
Dallas, TX
City B
Memphis, TN
How much would you need to earn in Memphis, TN to maintain your standard of living from Dallas, TX?
Equivalent salary in Memphis, TN
$67,285
You could earn $7,715 less (10% 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
Dallas
Texas
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: Census ACS, BEA, HUD Fair Market Rents, EPA AirNow, Tax Foundation
Median rent is modestly lower in Memphis at $1,181/mo compared to $1,472/mo in Dallas (20% gap). Home buyers face a steeper market in Dallas: the median home is $320,700 versus $169,000 in Memphis — 47% more expensive.
1BR Fair Market Rent
2BR Fair Market Rent
BLS OEWS 2023 — metro-level data
State tax data is not yet available for these cities.
Dallas
Income tax: N/A
Sales tax: N/A
Memphis
Income tax: N/A
Sales tax: N/A
Memphis has cleaner air on average: 19.0 AQI (Good) compared to 55.0 AQI (Moderate) in the other city. Lower AQI means cleaner, healthier air.
Pick Memphis if you prioritize lower overall cost of living (index 91.9 vs 102.5).
Pick Dallas if you prioritize higher median household income ($70,518/yr).
Pick Memphis if you prioritize cheaper rent ($1,181/mo median).
Pick Memphis if you prioritize cleaner air quality (avg AQI 19.0).
Is Dallas cheaper than Memphis?
Memphis is cheaper overall, with a cost of living index of 91.9 versus 102.5 (US average = 100). That means prices run about 10% lower in Memphis.
How much is rent in Dallas vs Memphis?
Median rent is $1,472/mo in Dallas, TX and $1,181/mo in Memphis, TN. Memphis, TN has the lower rent by about 20%.
Which has higher salaries — Dallas or Memphis?
Median household income is $70,518 in Dallas, TX and $51,736 in Memphis, TN. Dallas, TX 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?
Memphis, TN has better air quality on average: 19.0 AQI versus 55.0 AQI. Both are EPA AirNow annual averages; lower is better.
Which has lower taxes — Dallas or Memphis?
State tax data is not yet available for one or both cities.
What salary do I need in Memphis to match my Dallas income?
To maintain the same purchasing power, a salary of $100,000 in Dallas, TX is equivalent to roughly $89,713 in Memphis, TN (using the BEA Regional Price Parity ratio). Use the salary calculator above for any income amount.
Data last updated: December 1, 2026 · Sources: US Census ACS, BEA RPP, BLS OEWS, HUD FMR, EPA AirNow, Tax Foundation · Methodology
