Tennessee · Nashville-Davidson--Murfreesboro--Franklin, TN metro area

Buying a home in Franklin, Tennessee

In Franklin, the median value of owner-occupied homes is $705,400, Williamson County's effective property tax rate is 0.4%, a purchase mortgage carried a median $6,733 in total loan costs in 2025, and median gross rent is $1,923 a month.

Data as of : Census ACS 2020-2024, Census Vintage 2024, HMDA 2025, HUD FY 2027. Sources

Franklin home costs, fact by fact

About Franklin

Median gross rent in Franklin, Tennessee is $1,923 a month, and HUD's Fair Market Rent for a two-bedroom in Williamson County is $1,798.

Reading the Franklin figures

Owners in Franklin estimate a median value of $705,400, a level that sits far above the $341,200 given for Tennessee as a whole and above Nashville at $413,600 or Murfreesboro at $402,100. Memphis reports $169,000, so the state spans a wide range. Rent runs $1,923 a month in Franklin, against HUD's benchmark of $1,798 and its larger-unit benchmark of $2,309 for Williamson County. The county rate of 0.4% looks light, yet the tax collector still reaches $3,004 a year on a home worth $751,900 in Williamson County. Among 3,383 mortgages originated in 2025, up-front loan expenses spread widely, from $3,825 to $11,125 around a typical $6,733.

Calculate for Tennessee

If you buy

Tennessee state transfer tax

Realty transfer tax (recordation tax, Tenn. Code Ann. 67-4-409): $0.37 per $100 of purchase price (0.37%). Change the price: the amount is recalculated instantly.

Price$341,200
State transfer tax$1,262.44
Share of the price0.37% of the price
Who paysThe buyer

Default price: the Tennessee median value of owner-occupied homes, $341,200 (Census ACS 2025). Rule: Price divided by $100, times $0.37. The base for a typical sale is the greater of the price paid or the value of the property at transfer. The sources do not say how a fraction of $100 is handled. Who pays: The Department's manual says the grantee (buyer named on the deed) pays the realty transfer tax and the mortgagor pays the mortgage tax; the manual does not discuss private agreements, so check the purchase contract. Not included: county and city transfer taxes, the tax on the mortgage, recording fees, title insurance and lender charges. Tennessee transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Tennessee state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Questions about buying a home in Franklin

How much is property tax in Franklin?

Homeowners in Williamson County pay a median $3,004 a year in property tax, 0.4% of the county median home value of $751,900 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Franklin?

Home-purchase mortgages in Williamson County carried median total loan costs of $6,733 in 2025; half of the 3,383 loans fell between $3,825 and $11,125 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Franklin?

Tennessee taxes both the deed and the loan: the realty transfer tax is $0.37 per $100 of purchase price and the mortgage tax is $0.115 per $100 of debt with the first $2,000 exempt. By the Department of Revenue's rules the buyer pays the first and the borrower the second.

Is it cheaper to rent or buy in Franklin?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Franklin ($705,400) equals 30.6 years of the median gross rent ($1,923 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Tennessee rules that apply in Franklin

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Sources

Tennessee · All states · Federal guides