Memphis vs Omaha: cost of living compared
Omaha is 9% more expensive than Memphis overall. Memphis (TN) has no state income tax; NE tops out around 5.84%.
Indexes use a US average of 100: below 100 is cheaper than the national average. Housing and transportation are derived from median home prices, rents and commute times; figures come from BLS, Census ACS, Numbeo and the MIT Living Wage Calculator.
The big picture
Comparing Memphis and Omaha reveals a noticeable difference in overall cost of living, with Memphis generally being more affordable. This advantage is largely driven by housing expenses, which are significantly lower in Memphis. While some categories like utilities are roughly similar, and transportation is somewhat cheaper in Omaha, the substantial gap in housing costs makes Memphis the more budget-friendly option for many everyday expenses.
Housing
Housing costs present the most significant difference between these two metros. Both buying a home and renting an apartment are noticeably more expensive in Omaha. Memphis offers a much lower median home price and more affordable rent for a typical one-bedroom unit. Property taxes and insurance costs can vary, but the initial purchase price and monthly rent show a clear advantage for Memphis, often featuring traditional Southern architecture.
Taxes and everyday costs
Daily expenses show a mixed picture. While Omaha has a state income tax, Memphis does not, which can impact take-home pay. Transportation costs are somewhat lower in Omaha, while food, healthcare, and miscellaneous expenses are slightly higher there. Utilities are roughly comparable in both metros. This means that while some daily spending categories are similar, the lack of state income tax in Memphis can provide a notable financial benefit.
Lifestyle trade-offs
Memphis offers a humid subtropical climate with hot summers and mild winters, while Omaha experiences a humid continental climate with distinct seasons, including colder winters and warm summers. Both metros are car-dependent, with similar average commute times, though Omaha's might be slightly quicker. Memphis is known for its Mississippi River influence and cultural heritage, while Omaha is a major Midwest hub with a more plains-like environment.
Bottom line
For those weighing a move, Memphis generally offers a more economical choice, primarily due to its significantly lower housing costs and absence of a state income tax. While Omaha presents some advantages in transportation affordability and a slightly quicker commute, the overall financial burden is greater there. A household's budget will stretch further in Memphis, making it an attractive option for those prioritizing cost savings.
| Measure | Memphis, TN | Omaha, NE |
|---|---|---|
| Overall cost of living (US avg = 100) | 78 | 85 |
| Housing index | 54 | 67 |
| Transportation index | 88 | 80 |
| Food index | 85 | 88 |
| Healthcare index | 88 | 90 |
| Utilities index | 92 | 92 |
| Misc index | 78 | 82 |
| Median home price | $178,000 | $238,000 |
| Median 1-bedroom rent | $900/mo | $1,000/mo |
| Average commute | 25 min | 22 min |
Compare any two metros with the free cost of living tool, or see the true monthly cost of a specific Omaha home with the True Cost Calculator.