The income a Tennessee family needs to pay for necessities such as food, housing and childcare far surpassed the federal poverty threshold, according to an analysis by The Sycamore Institute, a nonpartisan think tank.

The analysis found that basic necessities in Tennessee cost significantly more than those living at the poverty line can afford. The poverty threshold is a metric set by the federal government to establish a minimum “survival budget.” It often forms the basis for determining whether families are poor enough to qualify for certain public benefits.

In Tennessee, more than 40% of households struggled to afford basic needs in 2024, the study found. The report also found the cost of those basic needs – such as housing, childcare and food –  in Tennessee has increased faster than inflation since 2019.

The study relied on Census data and a methodology known as “ALICE” that was designed as an alternative to the federal poverty level metric to account for a broader range of common expenses families incur to get by. 

It found that the estimated costs of basic needs varied widely by county. Families in Williamson, Wilson, Rutherford, Trousdale and Roberton counties incurred the highest costs for necessities; families in Lincoln, Campbell, Claiborne, Clay and Benton Counties incurred the lowest. 

The report also found that wages and income in Tennessee grew faster than inflation. Median household income grew by more than 28% between 2019 and 2024. 

2026.09-final-financial-hardship-and-affordability-in-tennessee