Germantown, TN

Very High · 133

Tennessee · Population 40,812 · Updated March 2026

$1,760
Median Rent / Month
$144,799
Median Income
$441,200
Median Home Value
$1,948
Owner Costs / Month

Affordability

How far your income goes in Germantown

14.6%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in Tennessee

State-level tax rates that affect your costs

0%
Income Tax (Top Rate)
7.0%
Sales Tax
0.64%
Property Tax Rate

Estimated Annual Costs

$21,120
Annual Rent
$0
State Income Tax
$2,824
Property Tax (est.)

Cost of Living Overview

Germantown has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 133 (where 100 equals the national median), Germantown residents can expect to pay median rent of $1,760/month while earning a median household income of $144,799/year.

The median home value in Germantown, TN is $441,200, with typical monthly owner costs around $1,948 including mortgage, insurance, and taxes. The median rent-to-income ratio of 14.6% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

Tennessee has no state income tax, which can represent significant savings compared to high-tax states. Combined with a 7.0% sales tax rate and 0.64% effective property tax rate, the overall tax environment helps keep costs manageable in Germantown.

Frequently Asked Questions

Common questions about living costs in Germantown

What is the cost of living in Germantown, TN?
The cost of living index in Germantown, TN is 133 (US average = 100). Median monthly rent is $1,760, median household income is $144,799/year, and the median home value is $441,200.
Is Germantown, TN affordable?
No, Germantown is more expensive than the national average with a cost index of 133. The rent-to-income ratio is 14.6%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Germantown, TN?
The median gross rent in Germantown, TN is $1,760 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $21,120.
What is the median household income in Germantown?
The median household income in Germantown, TN is $144,799 per year. This compares to the national median of approximately $80,000.
What are the taxes like in Tennessee?
Tennessee has a top income tax rate of 0%, a sales tax of 7.0%, and an effective property tax rate of 0.64%. Notably, there is no state income tax.