Quick answer
Memphis costs $535/month less overall ($1,455 vs $1,990/mo). Memphis also has lower state income tax (None vs 2.5%), widening the advantage for higher earners.
City Comparison · 2026
Memphis vs Tempe
Side-by-side on rent, home prices, taxes, walkability, jobs, and climate — with a straight verdict for each type of mover.
Last updated: April 23, 2026
Memphis vs Tempe at a Glance
| Metric | Memphis | Tempe |
|---|---|---|
| 1BR Monthly Rent | $980 ✓ | $1,850 |
| 2BR Monthly Rent | $1,220 ✓ | $1,850 |
| Median Home Price | $195K ✓ | $520K |
| Avg Utilities/mo | $150 ✓ | $210 |
| Avg Groceries/mo | $325 ✓ | $330 |
| Monthly Cost (1BR) | $1,455 ✓ | $1,990 |
| Walk Score | 36/100 | 71/100 ✓ |
| Transit Score | 28/100 | 58/100 ✓ |
| State Income Tax | None ✓ | 2.5% |
Monthly cost = 1BR rent + utilities + groceries for one person. ✓ marks the lower/better value.
Cost of Living: What the Numbers Actually Mean
Rent gap: Memphis's 1BR averages $980/month vs $1,450 in Tempe — a $470/month difference, or $5,640/year. That's a meaningful gap worth factoring into your decision.
State tax: Memphis charges None state income tax vs 2.5% in Tempe. On an $80K salary that's a $2,000/year difference. On $120K, the gap grows to $3,000 vs $0 — important context if you're choosing between tech job offers.
Home buying: Median homes in Memphis are $195K vs $520K in Tempe. At a 20% down payment, that's a $65,000 difference in upfront cash — significant at early-career savings rates.
Utilities: Tempe utilities run $60 more per month than Memphis.
Walkability, Transit & Daily Life
Memphis, TN
Car ownership is effectively mandatory in Memphis. Budget $400–600/month for a car if you don't own one.
TOP NEIGHBORHOODS
Tempe, AZ
Tempe's walkability means you can genuinely live without a car in the right neighborhoods.
TOP NEIGHBORHOODS
Climate
Memphis
Hot humid summers, mild winters with occasional ice storms, high annual rainfall
Tempe
Hot and dry: 100-120°F June-August, 55-70°F Nov-Feb. Virtually no rain. Intense sun, low humidity, clear skies year-round.
Job Market
Memphis top industries
Tempe top industries
Who Should Pick Which City
Move to Memphis if…
- →You're a logistics / supply chain workers
- →You're a healthcare workers
- →You're a musicians
- →You're a remote workers seeking extreme affordability
- →You want zero state income tax
- →You're buying a home and want more for your money
Move to Tempe if…
- →You're a Tech workers wanting California-quality jobs with 40% cheaper housing
- →You're a Students and recent graduates (ASU ecosystem)
- →You're a Remote workers who can handle extreme heat
- →You're a Anyone wanting low taxes, walkability, and affordable homeownership
- →You want to live without a car
Frequently Asked Questions
Is Memphis or Tempe cheaper to live in?
Memphis is cheaper overall. Monthly costs (1BR rent + utilities + groceries) run $1,455 in Memphis vs $1,990 in Tempe — a $535/month difference.
Which city is more walkable — Memphis or Tempe?
Tempe is more walkable with a Walk Score of 71/100 vs 36/100. Memphis is more car-dependent.
Memphis vs Tempe: which has lower state income tax?
Memphis has lower state income tax (None). On an $80K salary, that saves $2,000/year vs Tempe (2.5%).
Is Memphis or Tempe better for buying a home?
Memphis has lower median home prices at $195K vs $520K in Tempe — a $325,000 difference on the median home.