by Kristen Carney
Updated: December 17, 2024
The richest city in Tennessee is Petros in Morgan County with an average household income of $312,188 as of 2023. While exceptionally affluent, Petros only has a population of 269 as of 2023. The richest city in Tennessee with at least 5,000 people is Brentwood in Williamson County with an average household income of $261,248 as of 2023 and 45,265 people as of 2023 according to the most current Census data available (citation).
Rank | City | County | Population | Average Income | Median Income |
---|---|---|---|---|---|
1 | Petros | Morgan | 269 | $312,188 | -$1 |
2 | Lookout Mountain | Hamilton | 2,053 | $305,525 | $195,063 |
3 | Taft | Lincoln | 305 | $266,049 | -$1 |
4 | Brentwood | Williamson | 45,265 | $261,248 | $184,720 |
5 | Signal Mountain | Hamilton | 8,916 | $204,362 | $139,714 |
6 | Ridgeside | Hamilton | 447 | $203,822 | $177,500 |
7 | Piperton | Fayette | 2,689 | $196,359 | $125,982 |
8 | Walden | Hamilton | 1,979 | $191,122 | $135,000 |
9 | Germantown | Shelby | 40,267 | $190,980 | $144,799 |
10 | Farragut | Knox | 25,579 | $190,140 | $142,402 |
11 | Nolensville | Williamson | 15,437 | $179,578 | $170,068 |
12 | Collierville | Shelby | 51,317 | $177,371 | $134,319 |
13 | Flat Top Mountain | Hamilton | 1,052 | $169,640 | $118,766 |
14 | Shackle Island | Sumner | 4,164 | $162,858 | $131,944 |
15 | Fairmount | Hamilton | 1,932 | $161,342 | $133,232 |
16 | Thompson's Station | Williamson | 8,580 | $157,580 | $122,139 |
17 | Apison | Hamilton | 4,397 | $155,809 | $104,741 |
18 | Sewanee | Franklin | 3,000 | $155,125 | $128,295 |
19 | Dellrose | Lincoln | 98 | $153,238 | -$1 |
20 | Ocoee | Polk | 210 | $150,871 | $174,773 |
We usually suggest using median income data – either instead of or in addition to – average income data as a true indicator of wealth. If you haven’t thought about median versus average since your last standardized test, you aren’t alone. Here’s what they are:
Now let’s say you had the following simplified set of income data.
Household 1: $30,000
Household 2: $50,000
Household 3: $1,000,000
The average income for this set is $360,000. The outlier data point ($1,000,000) skews the average WAY up. Conversely, the average income would be skewed WAY down if someone had an income of $500. The median income for the same data set is $50,000. Outlier data doesn’t skew the median.
So most business owners should use the median income as a true indicator of wealth, because it provides a more accurate representation of a typical income, especially in areas with significant income disparity.
If your target market is high-income households, the average income may be more relevant. This is because the average income can highlight the presence of a higher concentration of wealthy individuals, which is beneficial for luxury goods and services marketing. We’re using average income on this page because using the Census’s highest reported median value of $250,001 could result in multiple ties for the richest geography.
The Census' American Community Survey uses $250,000+ as a jam value for median income estimates to protect privacy, ensure data consistency, and simplify reporting. A "jam value" in survey data refers to a placeholder or default value used when actual data points are unavailable, incomplete, or exceed certain thresholds. We represent this jam value as $250,001 to make it easy for you to sort.
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United States Census Bureau. Annual Estimates of the Resident Population: April 1, 2020 to July 1, 2023. U.S. Census Bureau, Population Division. Web. May 2024. http://www.census.gov/.
United States Census Bureau. B01001 SEX BY AGE, 2023 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 12 December 2024. http://www.census.gov/.
United States Census Bureau. B19013 Median Household Income, 2023 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 12 December 2024. http://www.census.gov/.
United States Census Bureau. “DP03 SELECTED ECONOMIC CHARACTERISTICS.” 2023 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 12 December 2024. http://www.census.gov/.
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