Median rent is 34% lower in Memphis ($1,181/mo vs $1,779/mo). Buying is cheaper in Memphis, where the median home runs $169,000 versus $506,300. Households earn more in Sacramento ($87,321 vs $51,736 a year). Taken together, Memphis is the more affordable choice with a cost index of 91.9 against 109.1 — about 16% lower overall prices. After adjusting income for local prices, a typical paycheck stretches further in Sacramento, CA.
Cost of living verdict
Memphis is 16% cheaper overall
Cost of Living Index: 91.9 in Memphis vs 109.1 in Sacramento (US national average = 100)
City A
Memphis, TN
City B
Sacramento, CA
How much would you need to earn in Sacramento, CA to maintain your standard of living from Memphis, TN?
Equivalent salary in Sacramento, CA
$88,984
You'd need $13,984 more (19% 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
Memphis
Tennessee
Sacramento
California
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 Memphis — median rent of $1,181/mo versus $1,779/mo in Sacramento, a 34% difference. Home buyers face a steeper market in Sacramento: the median home is $506,300 versus $169,000 in Memphis — 67% more expensive.
Metric
Memphis
Sacramento
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.
Memphis
Income tax: N/A
Sales tax: N/A
Sacramento
Income tax: N/A
Sales tax: N/A
Memphis has cleaner air on average: 19.0 AQI (Good) compared to 52.0 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 109.1).
Pick Sacramento if you prioritize higher median household income ($87,321/yr).
Pick Memphis if you prioritize cheaper rent ($1,181/mo median).
Pick Memphis if you prioritize cleaner air quality (avg AQI 19.0).
Memphis is cheaper overall, with a cost of living index of 91.9 versus 109.1 (US average = 100). That means prices run about 16% lower in Memphis.
Median rent is $1,181/mo in Memphis, TN and $1,779/mo in Sacramento, CA. Memphis, TN has the lower rent by about 34%.
Median household income is $51,736 in Memphis, TN and $87,321 in Sacramento, CA. Sacramento, CA has the higher median income. Note that BLS occupational wages in the table above show wages for specific jobs.
Memphis, TN has better air quality on average: 19.0 AQI versus 52.0 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 Memphis, TN is equivalent to roughly $118,646 in Sacramento, CA (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
