Madison, TN vs. Nashville, TN: Cost of Living Comparison (2025)
Considering a move to Tennessee and deciding between Madison and Nashville? This cost of living comparison breaks down the key differences in housing, utilities, groceries and more between these two popular cities in 2025. Whether you’re relocating for work, buying a home, or renting an apartment, see which location best fits your lifestyle and budget.
1. Housing Costs
Housing is often the biggest factor in cost of living. Here’s how typical rent and home prices compare in Madison vs Nashville:
| Housing Type | Madison | Nashville |
|---|---|---|
| Median 2BR Apartment Rent | $1,250 | $1,650 |
| Median 3BR Home Price | $325,000 | $450,000 |
🏆 Winner: Madison. Expect to pay around 25% less for housing in Madison compared to Nashville proper.
2. Utilities and Energy Costs
Utility bills can add up. In Madison, the average household spends around $180 per month on electricity, water, and gas. Nashville utility costs tend to run slightly higher, averaging $210 monthly, due to the larger home sizes and hotter summers in the city.
🏆 Winner: Madison. While utility rates are similar, Madison’s smaller homes and milder climate keep bills lower overall.
3. Groceries and Daily Expenses
For groceries and everyday items, prices are comparable between Madison and Nashville. A gallon of milk averages $3.50 in both cities, while a meal at an inexpensive restaurant is around $12-15.
However, Nashville does have more upscale dining and shopping options downtown, which can increase your overall spending if you go out frequently. Expect to pay 10-20% more for drinks and entertainment in Nashville vs Madison.
🏆 Winner: Madison, but only slightly. Grocery costs are nearly identical, with more budget-friendly local options than Nashville.
4. Taxes and Fees
Tennessee has no state income tax, so your take-home pay will be similar in either city. However, Nashville has slightly higher sales taxes (9.25% vs 9.00% in Madison) and property taxes (0.99% vs 0.91% in Madison).
Madison homes are more likely to have HOA fees, which average $200/month, while many urban Nashville properties do not have additional fees.
🏆 Winner: Madison. Lower property and sales tax rates add up to more savings for Madison residents.
5. Cost Summary
| Category | Madison | Nashville |
|---|---|---|
| Housing (3BR Home) | $1,800 | $2,500 |
| Utilities | $180 | $210 |
| Groceries | $400 | $425 |
| Transportation | $60 | $80 |
| Taxes (Property) | $250 | $375 |
| Miscellaneous | $500 | $650 |
| Estimated Monthly Total | $3,190 | $4,240 |
These estimates are based on a gross monthly income of $6,500 for a household of 3. Your actual costs will vary based on your income, lifestyle and family size. See our guide on Monthly Budget Examples for Madison Residents for more details.
6. Lifestyle Fit
While costs are important, so is quality of life. Some key differences:
- Madison has more space and privacy, with larger yards and quieter neighborhoods, compared to the dense urban feel of Nashville.
- Nashville has better walkability and public transit, making it easier to get around without a car. Madison is more car-dependent.
- Nashville averages 5°F warmer than Madison year-round, with hotter, more humid summers.
7. FAQ
Q: Is Madison more affordable than Nashville?
A: Yes, the cost of living is around 25% lower in Madison, primarily due to cheaper housing, utilities and taxes.
Q: Which city has lower rent prices?
A: Rents are significantly lower in Madison. A typical 2BR apartment is $1,250 in Madison compared to $1,650 in Nashville.
Q: Where is it cheaper to buy a home?
A: Madison has much lower home prices. The median 3BR house is around $325,000 in Madison vs $450,000 in Nashville as of 2025.
8. Conclusion
Overall, Madison is 25% cheaper than Nashville, with lower costs for housing, utilities, taxes and transportation. Madison offers more affordable suburban living, extra space, and a quieter lifestyle, while still being close to Nashville.
However, Nashville can be worth the extra cost for those who prefer denser, urban neighborhoods with more dining, entertainment and public transit options. It comes down to your budget, family needs and personal preferences.
For more details, see our full Cost of Living in Madison (2025 Guide) or compare other cities in Tennessee.