Is it cheaper to live in Memphis or Omaha?

Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 1% below Omaha, NE's $1,120, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $39,000 in Omaha.

Which has lower taxes, Memphis or Omaha?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% state sales tax).

Memphis vs Omaha Cost of Living 2026

Memphis

Tennessee

$1,110/mo est.

Omaha

Nebraska

$1,120/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,110 in Memphis, TN versus $1,120 in Omaha, NE. Overall, Memphis, TN is roughly 1% cheaper to live in day-to-day than Omaha, NE, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $72,708 in Omaha, NE — about 30% higher in Omaha, NE. Tennessee has no state income tax and a 7% state sales tax; Nebraska has a top state income tax rate of 4.55% and a 5.5% state sales tax.

Memphis, TN

Omaha, NE

Rent

Studio

$877

$908

+4% in Omaha, NE

1 Bedroom

$948

$984

+4% in Omaha, NE

2 Bedroom

$1,073

$1,193

+11% in Omaha, NE

3 Bedroom

$1,281

$1,437

+12% in Omaha, NE

Buying a Home

Median Home Value

$157,100

$230,100

+46% in Omaha, NE

Income

Median Household Income

$51,211

$72,708

+42% in Omaha, NE

Metro Median Wage (annual)

$46,890

$49,660

+6% in Omaha, NE

People & Lifestyle

Median Age

34.3 yr

35.3 yr

+1.0 yr in Omaha, NE

Homeownership

46.0%

57.7%

+11.7 pp in Omaha, NE

Bachelor's+ (25+)

28.2%

40.3%

+12.1 pp in Omaha, NE

Avg Commute

21.3 min

19.6 min

+1.7 min in Memphis, TN

Crime (per 100k/yr)

Violent Crime

2,507.5

358.6

+86% in Memphis, TN

Property Crime

6,965.8

3,153

+55% 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

63.1°F

51.1°F

+12.0°F in Memphis, TN

Annual Precipitation

53.7 in

30.6 in

+23.1 in in Memphis, TN

Gas

Regular Gasoline

$4.35/gal

about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$1.75

$1.25

+29% in Memphis, TN

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

Utilities

Electricity (¢/kWh)

15.1

13.1

+13% in Memphis, TN

Natural Gas ($/MCF)

$15.54

$12.06

+22% in Memphis, TN

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

Groceries

Milk (gal)

$4.16

$4.14

+1% in Memphis, TN

Bread (lb)

$1.73

$1.79

+4% in Omaha, NE

Eggs (doz)

$2.19

$3.63

+66% in Omaha, NE

Ground Beef (lb)

$6.56

$6.97

+6% in Omaha, NE

Chicken (lb)

$1.90

$2.15

+13% in Omaha, NE

Bananas (lb)

$0.61

$0.63

+3% in Omaha, NE

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

State Taxes

Sales Tax (TN / NE)

5.5%

+1.5 pp in TN

Income Tax (top rate)

None

4.55%

+4.5 pp in NE

Memphis vs Omaha — FAQ

Is it cheaper to live in Memphis or Omaha?: Memphis, TN is cheaper. Its monthly baseline of $1,110 (1BR rent + utilities) runs about 1% below Omaha, NE's $1,120, mainly because of rent.
How much more do you need to earn to live in Memphis than in Omaha?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $39,000 in Omaha.
Which has lower taxes, Memphis or Omaha?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Omaha under Nebraska's (a top state income tax rate of 4.55% and a 5.5% 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).