USDA eligibility in Tennessee: the income limits and the property map
Two gates decide USDA eligibility: your household income and the home's location. Both are checked against current USDA figures, and both trip up Tennessee buyers who rely on outdated numbers or a rough ZIP-code guess. Here is exactly how each one works from Portland and Springfield out to the deeper-rural counties.
USDA income limits: why the Nashville metro changes the answer
USDA caps eligibility at 115% of the area median income for the county where you buy. For most of Tennessee that lands at $122,800 for a household of one to four people and $162,100 for five to eight, effective July 13, 2026 under Procedure Notice 657. The Nashville-Davidson-Murfreesboro-Franklin metro is the one exception, running higher at $133,550 for one to four and $176,300 for five to eight. One correction, because plenty of Tennessee pages get it wrong: Knoxville, Memphis, and Chattanooga all use the standard $122,800, not a raised figure.
The part people miss is who gets counted. USDA looks at the income of every adult who will live in the home, not just the borrowers on the loan. An adult child working a job in Murfreesboro, or a partner you are not putting on the mortgage, still counts toward the household total. On the other side, USDA allows deductions, for example for dependents and childcare, that can pull an over-the-line Rutherford County household back under. A quick self-check often gives the wrong answer in both directions.
The income math still favors Tennessee buyers. The statewide median household income is roughly $72,000, while the limit for most of the state is $122,800, about 70% higher, so USDA is far from a low-income-only program here. A dual-income Clarksville or Jackson household near $100,000 clears the cap comfortably.
| 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 |
Look up your county's actual limit on the USDA income eligibility tool. If your income lands near the Nashville-metro line, that is exactly when it pays to have someone run the deductions properly before you assume you are out.
Which Tennessee areas are USDA-eligible?
Eligibility is set per address, not per county, so the honest rule is that most of a Tennessee county's land is eligible except the built-up city core. What is excluded is the metro cores of Nashville (Davidson County), Memphis (Shelby County), Knoxville, and Chattanooga. Around Nashville, the eligible territory is the outer ring, and population growth is what pushes that line outward, so the table shows each ring county's 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 |
County populations and growth: U.S. Census 2025 estimates for the Nashville metropolitan area. Eligibility reads are by location and density; confirm each address on the USDA map.
Real Tennessee towns that generally sit in eligible territory include Portland (Sumner County, about 40 miles north of Nashville off I-65), Springfield (Robertson County, eligible outside the immediate core), Ashland City (Cheatham County, on the Cumberland River), and Dickson (Dickson County, 40 miles west on I-40). Deeper-rural options like Lafayette in Macon County and Centerville in Hickman County sit well inside the map, as do Dyersburg, McMinnville, Greeneville, Paris, and Lawrenceburg across the rest of the state.
The fast-growing counties are where eligibility is actively receding. 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. A Wilson County address that qualified three years ago may not today. Do not trust a ZIP code either, because a single ZIP around Gallatin can fall partly inside and partly outside the boundary, so enter the full property address into the USDA property eligibility map, or use our checker below and we will read the map for you.
We geocode the address and read the live USDA eligibility map. Informational only. USDA makes the final determination on a complete application.
The third gate: occupancy and property type
USDA is for owner-occupied primary residences only. A Franklin or Brentwood buyer cannot use it for a rental, a vacation home, or an income-producing property, and it is meant for people who do not already own a suitable home nearby. Eligible property types include existing homes, new construction, condos and PUDs, and new manufactured homes titled as real property. An existing manufactured home generally does not qualify unless it already carries a USDA loan.
Pairing THDA assistance with a USDA loan
Tennessee buyers have a state option that pairs cleanly with USDA. The Tennessee Housing Development Agency (THDA) runs the Great Choice Home Loan, a 30-year fixed mortgage with a 640 minimum credit score, and its companion Great Choice Plus down-payment assistance works alongside USDA-RD financing. Great Choice Plus comes in 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, so an eligible buyer in Dickson or Springfield can reach the table with essentially nothing out of pocket. When you pair the two, the more restrictive income limit applies, which is almost always USDA's. Confirm current terms on the THDA site, since program amounts change.
Outdated Tennessee numbers still floating around
A lot of USDA content about Tennessee is stale, and it costs buyers real money. If a page shows the 1-4-person income limit as $119,850, it predates the July 13, 2026 increase to $122,800 (Procedure Notice 657); the Nashville metro rose from $132,050 to $133,550 in the same update. If it tells you the guarantee fee is 2.75% or 3.5%, that is the statutory ceiling, not the 1.0% upfront and 0.35% annual actually charged since 2016. If it claims Knoxville, Memphis, or Chattanooga carry a raised income limit, they do not, only Nashville does. And if it says USDA has a maximum loan amount, it is confusing the Guaranteed program with the separate Section 502 Direct program. Current Tennessee figures are what we build every file on.
Tennessee USDA eligibility questions
Which Tennessee counties and towns qualify for USDA loans?
USDA eligibility is set per address, but broadly the rural parts of the Nashville-ring counties qualify: Robertson, Sumner, Dickson, Cheatham, Macon, Hickman, and the rural edges of Wilson, Rutherford, and Maury. Towns like Portland, Springfield, Ashland City, and Dickson sit in eligible territory, while the city cores of Nashville, Memphis, Knoxville, and Chattanooga do not. Confirm the exact address on the USDA map.
What is the USDA income limit for the Nashville area?
The Nashville-Davidson-Murfreesboro-Franklin metro carries a 2026 USDA income limit of $133,550 for a household of one to four and $176,300 for five to eight, above the $122,800 statewide floor. It applies to eligible outer-ring addresses like Portland and Springfield, since Davidson County itself is not USDA-eligible. It rose from $132,050 in 2025.
Does USDA count all household income or just the borrower's in Tennessee?
USDA counts the income of every adult who will live in the home, not only the people on the loan. A working adult child in a Murfreesboro household, or a partner not on the mortgage, still counts toward the limit. The Tennessee limit is 115% of the county's area median income, $122,800 in most of the state and $133,550 in the Nashville metro, though USDA allows deductions for dependents and childcare that can bring a household back under.
Can you use THDA down payment assistance with a USDA loan in Tennessee?
Yes. Tennessee's THDA Great Choice Plus assistance pairs with USDA financing. Because USDA requires no down payment, the help, up to $6,000 or $10,000 forgivable over ten years or up to $15,000 amortizing, goes toward closing costs on an eligible home in a town like Dickson or Springfield. That combination can make a $0-out-of-pocket purchase realistic. THDA requires a 640 credit score.
How do I 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 on this page. Do not rely on the ZIP code or town name, because eligibility can run down the middle of a street, especially in the fast-growing counties around Nashville, Wilson, Rutherford, and Maury, where the boundary is receding toward Mt. Juliet and Spring Hill.