Buying a Home: Tennessee vs Kentucky (2026 Comparison)

# Buying a Home: Tennessee vs Kentucky (2026 Comparison) Considering a move? This detailed comparison of Tennessee and Kentucky real estate markets will help you decide which state offers the best value for your home purchase in 2026. ## Quick Comparison | Factor | Tennessee | Kentucky | |--------|------------|------------| | Median Home Price | $256,800 | $263,000 | | Property Tax Rate | 0.55% | 0.77% | | Annual Property Tax | $1,400 | $1,472 | | Closing Costs | $5,063 | $2,475 | | FHA Limit (Floor) | $524,225 | $524,225 | | Days on Market | 35 | 38 | | 1-Year Price Change | +2.80% | +4.50% | | DPA Programs | 3 | 3 | ## Home Prices **Tennessee is more affordable** with a median home price $6,200 lower than Kentucky. At current rates (6.33%), here's what your monthly payment would look like at median prices: | State | Home Price | Est. Monthly P&I | |-------|------------|------------------| | Tennessee | $256,800 | $1,276 | | Kentucky | $263,000 | $1,306 | *Assumes 20% down payment, 30-year fixed mortgage* ## Property Taxes **Tennessee has lower property taxes** at 0.55% vs Kentucky's 0.77%. - Tennessee ranks #40 nationally - Kentucky ranks #29 nationally ## Closing Costs | State | Average Closing Costs | % of Price | |-------|----------------------|------------| | Tennessee | $5,063 | 1.18% | | Kentucky | $2,475 | 0.91% | ## Down Payment Assistance ### Tennessee (THDA) - **Great Choice Plus:** Up to $7,500 - **Homeownership for the Brave:** Additional $1,000 for veterans ### Kentucky (KHC) - **Affordable DPA:** Up to $10,000 - **Regular DPA:** Up to $6,000 ## Market Conditions ### Tennessee - Inventory: moderate - Market Type: Seller's Market - Price Trend: Rising ### Kentucky - Inventory: moderate - Market Type: Buyer's Market - Price Trend: Rising ## Total Cost of Homeownership Over 5 years at median home prices: | Cost | Tennessee | Kentucky | |------|------------|------------| | Mortgage (P&I) | $76,538 | $78,386 | | Property Taxes | $7,000 | $7,360 | | **5-Year Total** | **$83,538** | **$85,746** | ## Conclusion **Tennessee offers better overall value** when considering home prices, taxes, and closing costs. Use our state-specific calculators to get detailed estimates for your situation: - [Tennessee Mortgage Calculator](/mortgage-calculator/tennessee) - [Kentucky Mortgage Calculator](/mortgage-calculator/kentucky) --- *Data sources: Tax Foundation, Zillow, HUD. Last updated: January 2026.*