by Kristen Carney
Updated: June 20, 2024
The richest city in Tennessee is Lookout Mountain in Hamilton County with an average household income of $289,852 as of 2022. While exceptionally affluent, Lookout Mountain only has a population of 2,053 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 $251,875 as of 2022 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 | Lookout Mountain | Hamilton | 2,053 | $289,852 | $181,458 |
2 | Brentwood | Williamson | 45,265 | $251,875 | $181,576 |
3 | Petros | Morgan | 502 | $215,129 | $27,361 |
4 | Taft | Lincoln | 201 | $211,619 | -$1 |
5 | Signal Mountain | Hamilton | 8,916 | $190,480 | $132,639 |
6 | Ridgeside | Hamilton | 447 | $189,794 | $158,750 |
7 | Germantown | Shelby | 40,267 | $189,087 | $140,429 |
8 | Piperton | Fayette | 2,689 | $182,953 | $120,000 |
9 | Walden | Hamilton | 1,979 | $179,514 | $130,227 |
10 | Farragut | Knox | 25,579 | $176,058 | $135,725 |
11 | Nolensville | Williamson | 15,437 | $172,149 | $158,266 |
12 | Collierville | Shelby | 51,317 | $170,648 | $129,729 |
13 | Dellrose | Lincoln | 90 | $154,219 | -$1 |
14 | Sewanee | Franklin | 2,922 | $148,778 | $77,105 |
15 | Thompson's Station | Williamson | 8,580 | $145,936 | $116,569 |
16 | Fairmount | Hamilton | 1,747 | $143,662 | $115,227 |
17 | Luray | Henderson | 142 | $143,072 | -$1 |
18 | Mount Juliet | Wilson | 42,912 | $141,601 | $108,066 |
19 | Apison | Hamilton | 4,199 | $139,940 | $86,167 |
20 | Shackle Island | Sumner | 4,375 | $138,786 | $110,944 |
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, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.
United States Census Bureau. B19013 Median Household Income, 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 7 December 2023. http://www.census.gov/.
United States Census Bureau. “DP03 SELECTED ECONOMIC CHARACTERISTICS.” 2022 American Community Survey 5-Year Estimates. U.S. Census Bureau, American Community Survey Office. Web. 07 December 2023. http://www.census.gov/.
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