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

Buying a home in Murfreesboro, Tennessee

In Murfreesboro, the median value of owner-occupied homes is $402,100, Rutherford County's effective property tax rate is 0.48%, a purchase mortgage carried a median $7,859 in total loan costs in 2025, and median gross rent is $1,481 a month.

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

Murfreesboro home costs, fact by fact

About Murfreesboro

The city has 168,387 residents and lies in the Nashville-Davidson--Murfreesboro--Franklin, TN metro area, home to 2,150,553 people.

Reading the Murfreesboro figures

Murfreesboro's $402,100 is above the Tennessee median of $341,200 and just under Nashville's $413,600. Chattanooga is well below it, at $283,200, as is Clarksville at $263,600. The city is listed under the Nashville-Davidson--Murfreesboro--Franklin metro area, which ranks 35th nationally.

Rent is $1,481 a month, against Nashville's $1,586, and 52.4% of households own, the same share as Nashville. Rutherford County levies 0.48%, or $1,839 a year, where the median home is valued at $382,600, while HUD's benchmark is $1,798. Lender costs ran high: a median of $7,859 in 2025, with most loans from $4,940 to $13,193, the widest spread of the Tennessee fiches in this group. Murfreesboro has 168,387 residents, smaller than Clarksville's 185,690 or Knoxville's 198,722, so it is a mid-sized place with a Nashville-area price level.

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 Murfreesboro

How much is property tax in Murfreesboro?

Homeowners in Rutherford County pay a median $1,839 a year in property tax, 0.48% of the county median home value of $382,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Murfreesboro?

Home-purchase mortgages in Rutherford County carried median total loan costs of $7,859 in 2025; half of the 4,241 loans fell between $4,940 and $13,193 (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 Murfreesboro?

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 Murfreesboro?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Murfreesboro ($402,100) equals 22.6 years of the median gross rent ($1,481 a month), both from Census ACS 2020-2024.

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

Tennessee rules that apply in Murfreesboro

Other large cities in Tennessee

Who licenses each trade in Tennessee · All covered cities

Sources

Tennessee · All states · Federal guides