Lebanon is considered moderately affordable in 2025, with average rent for a 2-bedroom apartment at $1,450 and slightly lower grocery costs compared to the national average.
Is the true cost of living in Lebanon higher than you think? Many people are surprised to learn the actual monthly expenses required to maintain a comfortable lifestyle in this charming Tennessee city. As a specialist in rent, home values, and taxes, I’m here to provide a comprehensive breakdown of the cost of living in Lebanon for 2025.
Housing Costs in Lebanon
Lebanon offers a mix of housing options, from apartments and townhomes to single-family houses. Rental prices vary based on location, size, and amenities. Here’s a snapshot of typical housing costs:
- 1-bedroom apartment: $1,100 – $1,400/month
- 2-bedroom apartment: $1,300 – $1,600/month
- 3-bedroom house: $1,600 – $2,200/month
For those looking to purchase a home, the median home value in Lebanon is around $350,000 as of 2025. However, prices can range from $250,000 for a modest starter home to over $500,000 for a larger, newer property in desirable neighborhoods like Hamilton Springs or Five Oaks.
It’s important to note that some neighborhoods have mandatory Homeowners Association (HOA) fees, which can add $100-$300 per month to your housing costs. Be sure to factor this in when budgeting for a home purchase.
Utilities and Energy Bills
Utility costs in Lebanon are generally in line with the national average. Here’s a breakdown of typical monthly expenses:
| Utility | Average Monthly Cost |
|---|---|
| Electricity | $120 – $200 |
| Water | $30 – $60 |
| Natural Gas | $40 – $80 |
| Internet/Cable | $70 – $150 |
Keep in mind that electricity costs may spike during the hot summer months due to increased air conditioning usage. Budgeting an extra $50-$100 per month during this time is wise.
Groceries and Daily Expenses
The average grocery bill for a single person in Lebanon is around $300-$400 per month, while a family of four can expect to spend $800-$1,000. These figures include basic necessities like food, toiletries, and cleaning supplies.
To give you a sense of everyday prices, here’s a typical grocery basket:
- Gallon of milk: $3.50
- Loaf of bread: $2.50
- Dozen eggs: $2.00
- Pound of chicken: $3.00
Dining out can add to your monthly expenses. A meal at a casual restaurant typically runs $12-$20 per person, while a nicer dinner for two can easily cost $50-$80.
Taxes and Hidden Fees
Lebanon’s property tax rate is $2.87 per $100 of assessed value, which is slightly higher than the Tennessee average of $2.53. For a home valued at $350,000, this translates to roughly $10,000 in annual property taxes.
Tennessee does not have a state income tax, which can help offset the higher property taxes. However, there is a 7% sales tax on most goods and services, plus an additional 2.75% local tax in Wilson County, bringing the total to 9.75%.
Monthly Budget Summary
To summarize, here’s a sample monthly budget for living comfortably in Lebanon:
| Expense Category | Single Person | Couple | Family of 4 |
|---|---|---|---|
| Housing (Rent/Mortgage) | $1,200 | $1,500 | $1,800 |
| Utilities | $200 | $300 | $400 |
| Groceries | $350 | $600 | $900 |
| Transportation | $200 | $300 | $400 |
| Miscellaneous | $300 | $500 | $700 |
| Total Monthly Expenses | $2,250 | $3,200 | $4,200 |
| Recommended Gross Monthly Income (Pre-Tax) | $3,000 | $4,300 | $5,600 |
Remember, these figures are estimates and may vary based on your specific lifestyle and circumstances. It’s always a good idea to have a financial cushion for unexpected expenses.
Lifestyle Considerations
When evaluating the cost of living in Lebanon, it’s important to consider lifestyle factors beyond just the numbers. Lebanon offers a slower pace of life compared to nearby Nashville, with less traffic and a more tight-knit community feel.
However, this small-town charm comes with tradeoffs. Job opportunities may be more limited, and you’ll likely need to commute to Nashville for certain amenities or entertainment options. That said, Lebanon does have a growing number of local restaurants, shops, and parks that cater to residents.
Housing-wise, you’ll find a mix of older homes with character and newer developments with modern finishes. Opting for an older home can help keep costs down, but be prepared to budget for potential renovations or repairs.
Frequently Asked Questions
- Q: Is Lebanon cheaper than Nashville?
A: Yes, the cost of living in Lebanon is generally 10-15% lower than in Nashville, particularly when it comes to housing. - Q: Are utilities expensive in Lebanon?
A: Utility costs in Lebanon are fairly moderate, though electricity bills can rise during the hot summer months. - Q: How much do I need to earn to live comfortably in Lebanon?
A: To maintain a comfortable lifestyle, aim for a gross monthly income (pre-tax) of at least $3,000 for a single person, $4,300 for a couple, or $5,600 for a family of four. - Q: Is Lebanon a good place to raise a family?
A: Lebanon offers a family-friendly environment with good schools, safe neighborhoods, and plenty of parks and community events. However, job opportunities may be more limited compared to larger cities. - Q: What’s the sales tax rate in Lebanon?
A: The total sales tax rate in Lebanon is 9.75%, which includes the 7% state tax and the 2.75% Wilson County local tax.
While the cost of living in Lebanon may be higher than some anticipate, with careful budgeting and lifestyle adjustments, it’s possible to enjoy a high quality of life in this charming Tennessee city. By understanding the true expenses involved, you can make an informed decision about whether Lebanon is the right fit for your family and financial goals.