Is it cheaper to live in Allentown or Memphis?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 16% below Allentown, PA's $1,320, mainly because of rent.

How much more do you need to earn to live in Allentown than in Memphis?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $44,000 a year in Allentown versus $38,000 in Memphis.

Which has lower taxes, Allentown or Memphis?

Allentown is taxed under Pennsylvania's rules (a top state income tax rate of 3.07% and a 6% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Allentown vs Memphis Cost of Living 2026

Allentown

Pennsylvania

$1,320/mo est.

Memphis

Tennessee

$1,110/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,320 in Allentown, PA versus $1,110 in Memphis, TN. Overall, Memphis, TN is roughly 16% cheaper to live in day-to-day than Allentown, PA, driven mainly by rent.

Median household income is $53,403 in Allentown, PA and $51,211 in Memphis, TN — about 4% higher in Allentown, PA. Pennsylvania has a top state income tax rate of 3.07% and a 6% state sales tax; Tennessee has no state income tax and a 7% state sales tax.

Allentown, PA

Memphis, TN

Rent

Studio

$1,043

$877

+16% in Allentown, PA

1 Bedroom

$1,100

$948

+14% in Allentown, PA

2 Bedroom

$1,271

$1,073

+16% in Allentown, PA

3 Bedroom

$1,431

$1,281

+10% in Allentown, PA

Buying a Home

Median Home Value

$188,900

$157,100

+17% in Allentown, PA

Income

Median Household Income

$53,403

$51,211

+4% in Allentown, PA

Metro Median Wage (annual)

$48,990

$46,890

+4% in Allentown, PA

People & Lifestyle

Median Age

32.4 yr

34.3 yr

+1.9 yr in Memphis, TN

Homeownership

42.3%

46.0%

+3.7 pp in Memphis, TN

Bachelor's+ (25+)

19.4%

28.2%

+8.8 pp in Memphis, TN

Avg Commute

24.8 min

21.3 min

+3.5 min in Allentown, PA

Crime (per 100k/yr)

Violent Crime

274.5

2,507.6

+814% in Memphis, TN

Property Crime

1,591.5

6,966.3

+338% in Memphis, TN

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

51.2°F

63.1°F

+11.9°F in Memphis, TN

Annual Precipitation

45.4 in

53.7 in

+8.3 in in Memphis, TN

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Memphis, TN

Area: East Coast (PADD 1) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

—

$1.75

Adult base one-way fare — — vs MATA (2026).

Utilities

Electricity (¢/kWh)

21.6

14.5

+33% in Allentown, PA

Natural Gas ($/MCF)

$19.17

$16.83

+12% in Allentown, PA

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.00

+7% in Allentown, PA

Bread (lb)

$1.92

$1.75

+9% in Allentown, PA

Eggs (doz)

$2.19

$2.21

+1% in Memphis, TN

Ground Beef (lb)

$6.90

$6.45

+6% in Allentown, PA

Chicken (lb)

$2.19

$1.90

+13% in Allentown, PA

Bananas (lb)

$0.69

$0.62

+11% in Allentown, PA

Average prices — Northeast vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (PA / TN)

+1.0 pp in TN

Income Tax (top rate)

3.07%

None

+3.1 pp in PA

Allentown vs Memphis — FAQ

Is it cheaper to live in Allentown or Memphis?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 16% below Allentown, PA's $1,320, mainly because of rent.
How much more do you need to earn to live in Allentown than in Memphis?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $44,000 a year in Allentown versus $38,000 in Memphis.
Which has lower taxes, Allentown or Memphis?: Allentown is taxed under Pennsylvania's rules (a top state income tax rate of 3.07% and a 6% state sales tax); Memphis under Tennessee's (no state income tax and a 7% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).