The Scenic City’s cost of living is lower than the national average which makes it an attractive option for those looking to settle down in a growing community. With a median household income of $57,703, it sits below the median, yet residents benefit from lower costs in essential areas like housing, groceries, utilities and transportation. An overall index of 90.4 is notably under the US average of 100. Although healthcare expenses are slightly higher than the baseline, it is still affordable compared to other cities.

Despite being reasonable, Chattanooga does present some challenges particularly when it comes to housing. For instance, while the rule of thumb suggests not spending more than 30% of your gross income on rent and utilities, the average lease for a two-bedroom apartment is $1,408 exceeding the limit for a household earning $50,000 annually. However, homebuyers now have an option to use tools like SmartAsset’s cost calculator to gauge and plan based on their financial situation. When compared to other developing cities, Chattanooga still stands out as a more budget-friendly choice for families and individuals alike.