Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Colorado and Tennessee. Updated for 2026.
Colorado and Tennessee are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Tennessee saves you approximately $1,221/month ($14,652/year) compared to Colorado, based on median home prices with identical loan terms.
Tennessee offers meaningfully lower home prices than Colorado, with median prices running 35% less ($180K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Colorado may find Tennessee far more accessible, particularly when combined with local down payment assistance programs.
Property tax rates are similar in both states (Colorado: 0.51%, Tennessee: 0.56%), so taxes shouldn't be the deciding factor in your relocation decision. Instead, focus on differences in home prices, insurance costs, and state-specific programs. Both states collect roughly comparable property tax revenue relative to home values.
Insurance costs favor Tennessee at $2,400/year versus $3,200/year in Colorado, a difference of $800 annually. While not the largest cost factor, this adds up to over $8K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Both states offer down payment assistance for first-time buyers. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, while Tennessee's THDA Great Choice Home Loan offers Up to $25,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Tennessee homes cost $180K less than Colorado on average. That translates to roughly $1,221 less per month in total housing costs if you choose Tennessee. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.