USDA Loans in Tennessee: 2026 Income Limits, Eligible Counties & $0-Down Towns
USDA income limits in Tennessee are $122,800 for a 1-4 person household in most of the state and $133,550 in the Nashville metro for 2026, with $0 down. Here is exactly where the eligible areas are and how the limits work.
We read the live USDA map for the exact address. Informational only. USDA makes the final call on a complete application.
USDA income limits in Tennessee for 2026
The 2026 USDA income limit for most of Tennessee is $122,800 for a household of one to four people and $162,100 for five to eight, effective July 13, 2026 under USDA Procedure Notice 657. In the Nashville metro the limit is higher, at $133,550 for one to four and $176,300 for five to eight. These caps count your whole household's income, not just the borrowers.
| Tennessee area | Household of 1-4 | Household of 5-8 |
|---|---|---|
| Nashville-Davidson-Murfreesboro-Franklin metro | $133,550 | $176,300 |
| All other TN areas (Knoxville, Memphis, Chattanooga, rural) | $122,800 | $162,100 |
USDA Guaranteed income limits, effective July 13, 2026 (Procedure Notice 657). County-specific figures on the USDA income eligibility tool.
One correction, because plenty of Tennessee pages get it wrong: Nashville is the only Tennessee metro with a limit above the statewide floor. Knoxville, Memphis, and Chattanooga all use the standard $122,800, whatever some sites imply. And if a page still lists $119,850 as the current limit, it is stale. That was the 2025 figure, raised to $122,800 in July 2026; Nashville rose from $132,050 to $133,550 in the same update.
USDA is explicit that eligibility runs on the household, not the individual borrower. From USDA Handbook HB-1-3555:
"Income from all adult household members, not just parties to the note, must be considered."
So an adult child with a job, or a spouse you leave off the loan, still counts toward the limit. USDA then subtracts specific deductions before the comparison, which is why running the real numbers beats a rough guess.
Which Tennessee counties and towns qualify?
USDA eligibility is set per address, not per county, so the honest rule is that most of a county's land is eligible except the built-up city core. Around Nashville, the eligible territory is the outer ring of counties. Population growth is what pushes the eligible line outward, so the table shows each ring county's 2025 population and how fast it is growing.
| Nashville-ring county | 2025 population | Growth since 2020 | USDA read |
|---|---|---|---|
| Wilson (Lebanon) | 175,033 | +18.5% | Lebanon / Mt. Juliet cores out; rural east eligible |
| Maury (Columbia) | 118,131 | +17.0% | Spring Hill out; much of rural county eligible |
| Rutherford (Murfreesboro) | 386,352 | +13.1% | Murfreesboro/Smyrna out; rural edges eligible |
| Robertson (Springfield) | 80,175 | +10.1% | Broadly eligible outside the Springfield core |
| Sumner (Gallatin) | 215,538 | +9.8% | Gallatin/Hendersonville out; Portland, Westmoreland eligible |
| Dickson | 58,662 | +8.0% | Broadly eligible |
| Cheatham (Ashland City) | 42,778 | +4.2% | Broadly eligible |
| Macon, Hickman, Smith, Cannon, Trousdale | 13k-28k each | +5-10% | Deeply rural, eligible |
County populations and growth: U.S. Census 2025 estimates via the Nashville metropolitan-area data. Eligibility reads are by location and density; confirm each address on the USDA map.
The fast-growing counties are where eligibility is actively receding. Wilson (up 18.5% since 2020), Maury (17.0%), and Rutherford (13.1%) are the ones to watch. Mt. Juliet, Spring Hill, Nolensville, Thompson's Station, and the Murfreesboro-Smyrna fringe are either ineligible now or likely to flip at the next USDA map update. An address that qualified three years ago may not today, so re-check it.
Tennessee towns that generally sit in eligible territory, with their 2020 populations:
- Portland (Sumner County, pop. 13,156): about 40 miles north of Nashville off I-65.
- Springfield (Robertson County, pop. 18,782): 30 miles north, eligible outside the immediate core.
- Ashland City (Cheatham County, pop. 5,193): 25 miles northwest on the Cumberland River.
- Dickson (Dickson County, pop. 16,058): 40 miles west on I-40.
- Lafayette (Macon County, pop. 5,584) and Centerville (Hickman County, pop. 3,532): deeper-rural options within an hour.
Use the checker at the top of this page to confirm any exact address against the live USDA map.
Does Nashville qualify for a USDA loan?
Mostly no. Davidson County, which is the city of Nashville, is an ineligible metro core. When buyers say "Nashville USDA loan" they usually mean the ring, and even there the inner suburbs are out. The eligible part is the outer ring: Portland, Springfield, Ashland City, Dickson, and the rural stretches of the surrounding counties. The higher Nashville-metro income limit of $133,550 still applies to those eligible outer-ring addresses, which is the useful combination of a higher ceiling and $0 down.
Can a Tennessee buyer actually afford a home with USDA?
The income math favors Tennessee buyers. The statewide median household income is about $72,000 (Census, 2024), while the USDA limit for most of the state is $122,800, roughly 70% higher. The typical Tennessee household earns well under the cap, so USDA is not just for low incomes here. A dual-income household around $100,000 qualifies across most of the state.
On price, USDA sets no maximum loan amount, so the ceiling is what your income supports plus the appraisal. Tennessee's median sale price was about $393,767 in mid-2026 (Redfin), but that figure is pulled up by Nashville and Williamson County. In the rural counties where USDA is actually available, typical prices run lower, so 100% financing covers them comfortably. The catch to know: the priciest homes, in Franklin and Brentwood, are exactly where USDA eligibility runs out.
Memphis, Knoxville, and Chattanooga
The pattern repeats around the other metros. The county core is ineligible and the outer ring qualifies. Near Memphis, Tipton and Fayette counties and towns like Munford, Atoka, and Somerville are broadly eligible while Shelby County's core is not. Near Knoxville, look to Loudon, Union, Grainger, and rural Blount. Near Chattanooga, Sequatchie, Bledsoe, Rhea, and Marion counties qualify. All three metros use the standard $122,800 income limit, not a raised one.
Pairing THDA assistance with a USDA loan
Tennessee's THDA offers down-payment help that works with USDA financing. The Great Choice Home Loan is a 30-year fixed mortgage with a 640 minimum credit score that pairs with USDA-RD. Its companion, Great Choice Plus, provides assistance in one of two forms: a deferred second of up to $6,000 or $10,000 that is forgivable over ten years, or an amortizing second of up to 5% of the price, capped at $15,000. Because USDA needs no down payment, that assistance goes toward closing costs, which can make a genuinely $0-out-of-pocket purchase realistic. Confirm current terms on the THDA site, since program amounts change.
Tennessee USDA requirements at a glance
- Down payment: $0. USDA finances 100% of the price.
- Credit: no hard USDA minimum; 640 clears the automated system, and THDA requires 640.
- Income: household income within the county limit ($122,800 in most of Tennessee, $133,550 in the Nashville metro).
- Location: the home must sit in a USDA-eligible area, checked per address on the map.
- Loan amount: no maximum; bounded by your income and the appraisal.
Common questions
What are the USDA income limits in Tennessee for 2026?
For most of Tennessee, the 2026 USDA income limit is $122,800 for a household of one to four people and $162,100 for five to eight, effective July 13, 2026. The Nashville-Davidson-Murfreesboro-Franklin metro is higher, at $133,550 and $176,300. The limit counts total household income, not just the borrowers.
What is the USDA income limit for the Nashville area?
The Nashville metro USDA income limit for 2026 is $133,550 for a household of one to four people and $176,300 for five to eight, above the $122,800 statewide floor. It applies to eligible addresses in the outer ring of the metro, since the city core itself is not USDA-eligible. It rose from $132,050 in 2025.
Is Nashville eligible for a USDA loan?
Mostly no. Davidson County, the city of Nashville, is an ineligible metro core. The eligible territory is the outer ring: towns like Portland, Springfield, Ashland City, and Dickson, plus the rural parts of the surrounding counties. Those eligible outer-ring addresses still get the higher $133,550 Nashville-metro income limit.
Which Tennessee counties qualify for USDA loans?
USDA eligibility is per address, but broadly, the rural parts of the Nashville-ring counties qualify: Robertson, Sumner, Dickson, Cheatham, Macon, Hickman, Smith, and the rural edges of Wilson, Rutherford, and Maury. The city cores of Nashville, Memphis, Knoxville, and Chattanooga do not. Confirm the exact address on the USDA map.
What credit score do you need for a USDA loan in Tennessee?
USDA publishes no hard minimum credit score. Its automated underwriting system approves most reliably at a 640 score, which is the practical target, and Tennessee's THDA programs also require 640. Below that, a loan can still work through manual underwriting. Individual lenders may add their own overlays.
Is there a maximum loan amount for a USDA loan in Tennessee?
No. The USDA Guaranteed program sets no maximum loan amount in Tennessee or anywhere else. Your borrowing limit is what your household income supports under the debt-to-income guidelines, plus the home's appraised value. The loan limits people read about apply to the separate USDA Direct program.
Can you use THDA down-payment assistance with a USDA loan?
Yes. Tennessee's THDA Great Choice Plus assistance pairs with USDA financing. Because USDA requires no down payment, the assistance, up to $6,000 or $10,000 forgivable over ten years or up to $15,000 amortizing, goes toward closing costs. That combination can make a $0-out-of-pocket purchase realistic. THDA requires a 640 credit score.
How do you check if a Tennessee address is USDA-eligible?
Enter the exact street address into the USDA property eligibility map at eligibility.sc.egov.usda.gov, or use the checker at the top of this page. Do not rely on the ZIP code or the town name, because eligibility can run down the middle of a street, especially in the fast-growing counties around Nashville where the boundary is receding.