Nashville Housing Market at a Glance
Median Home Price
$475,000
Median Monthly Rent
$2,000
Property Tax Rate
0.64%
Avg Home Insurance
$2,100/yr
Price-to-Rent Ratio: 19.8x (Lower ratios favor buying; higher ratios favor renting)
Nashville-Specific Insights
- → Tennessee has no state income tax and moderate property taxes, making total ownership costs competitive.
- → Music City's population boom has driven rents up 30%+ in 3 years; buying locks in predictable costs.
Run Your Nashville Scenario
Pre-filled with Nashville's median data. Adjust to your situation.
Open Calculator with Nashville Data →Key Factors for Nashville Buyers
1. Down Payment Requirements
With Nashville's median home price of $475,000, a 20% down payment is $95,000. Putting down less triggers PMI (typically 0.5–1.5% annually until you reach 20% equity).
2. Property Taxes
TN's property tax rate averages 0.64%, which translates to roughly $253.333/month on a median-priced home. This is below the national average.
3. Tax Deductions
Mortgage interest is deductible if you itemize (must exceed standard deduction: ~$14,600 single, ~$29,200 married in 2025). With no state income tax in TN, the federal mortgage interest deduction is your primary tax benefit.
4. Opportunity Cost
If you rent and invest your down payment instead (e.g., S&P 500 averaging ~10% annually), you build wealth differently. The calculator models this trade-off month-by-month to find your break-even point.