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Shelby County, TN Mortgage Calculator

Estimate your monthly mortgage payment in Shelby County with local property tax rates, homeowners insurance, and 2026 FHA and conforming loan limits.

Local Home Values & Affordability

At a median of $175,000, Shelby County sits 44% below the national median of $310,000 — making it one of the more affordable markets in our dataset and well within FHA financing range.

A 20% down payment on a median Shelby County home requires $35,000 in cash — or $6,125 for an FHA-minimum 3.5% down payment. Buyers with less than 20% down will also need to budget for PMI or FHA MIP.

Property Tax in This Market

Based on the 1.27% effective rate and a median home value of $175,000, a typical homeowner in Shelby County pays approximately $2,223 in annual property taxes — or $185 per month added to their mortgage payment.

Shelby County's property tax rate of 1.27% is close to the national average of 1.10%. On a median-priced home of $175,000, expect an annual tax bill of approximately $2,223.

Sources: Tax Foundation 2025

Homeowners Insurance Costs

Homeowners insurance in Shelby County runs approximately $1,600/year ($133/month), in line with the national average of $1,600.

Premium quotes in Shelby County typically range from $1,100 to $2,400 per year depending on home age, construction type, coverage limits, and your insurer. Always get multiple quotes.

Sources: NAIC 2024

Loan Limits & Financing Options

A buyer purchasing the median Shelby County home ($175,000) with FHA's minimum 3.5% down would borrow $168,875 — well within the $541,287 baseline FHA limit for this county. FHA financing is a viable option for most buyers here.

With 20% down on a median-priced home, the loan amount of $140,000 stays $692,750 below the $832,750 conforming limit — giving buyers access to conventional Fannie/Freddie pricing without jumbo underwriting.

All FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, plus an annual MIP of 0.55%–0.75% of the loan balance paid monthly. On a $168,875 FHA loan, expect approximately $77/month in ongoing MIP — added to principal, interest, taxes, and insurance.

Sources: HUD ML 2025-23, FHFA 2026, HUD MIP Rates 2023

$
%

≈ $35,000

%

Illustrative — check with your lender

$

Extra Monthly Payment

$

Estimated Monthly Payment

$1,245

Estimates are for educational purposes only and are not a loan offer or commitment to lend.

FHA Eligible

Loan Amount: $140,000

LTV: 0.01%

P&I Payment

$927

Total Interest

$193,622

over loan life

Payoff

30 yr

Closing Costs

$3,325–$6,206

est. range

Monthly Payment Breakdown

2026 Loan Limit Context

FHA Limit

$541,287

Conforming Limit

$832,750

Amortization Schedule

Mo.PaymentPrincipalInterestBalanceTotal Interest
1$927$116$811$139,884$811
2$927$117$810$139,768$1,621
3$927$117$809$139,650$2,430
4$927$118$809$139,532$3,239
5$927$119$808$139,414$4,047
6$927$119$807$139,294$4,855
7$927$120$807$139,175$5,662
8$927$121$806$139,054$6,468
9$927$121$805$138,932$7,273
10$927$122$805$138,810$8,078
11$927$123$804$138,688$8,882
12$927$123$803$138,564$9,685
Months 112 of 360

2026 Loan Limits — Shelby County, TN

Limit Type2026 LimitNote
FHA Loan Limit (1-unit)$524,225Max loan for FHA-insured mortgage
Conforming Loan Limit (1-unit)$806,500Fannie Mae / Freddie Mac eligible

Source: HUD / FHFA. Data as of 2025-01-15.

FAQ — Shelby County Mortgage

What is the property tax rate in Shelby County?
The effective property tax rate in Shelby County is approximately 1.27%. This means a home worth $175,000 would have an estimated annual tax bill of about $2,223.
What is the 2026 FHA loan limit in Shelby County?
The 2026 FHA loan limit for a single-family home in Shelby County, TN is $524,225.
What is the conforming loan limit in Shelby County?
The 2026 conforming loan limit in Shelby County is $806,500. Loans above this amount are considered jumbo loans.
Does Tennessee have a state income tax?
Tennessee does not levy a state income tax on wages or salary income. Investment income is also no longer taxed following the elimination of the Hall Tax in 2021. This gives Tennessee residents higher take-home pay compared to neighboring states with income taxes, contributing to Nashville's and Memphis's popularity as relocation destinations.
How do Nashville's home prices compare to the FHA loan limit?
Nashville-area home prices have risen substantially since 2018. The Davidson County FHA limit for 2026 reflects elevated local prices. With median home values approaching or exceeding $400,000 in many Nashville neighborhoods, some buyers may need to make a larger down payment or use conventional financing rather than the FHA program.
How much should I budget for closing costs in TN?
Closing costs typically range from 2–5% of the loan amount. For a $350,000 loan, that's roughly $7,000–$17,500. TN buyers should also account for state and county transfer taxes, title insurance, and prepaid escrow items (property taxes and insurance). Always request a Loan Estimate from your lender within 3 days of application — it itemizes every cost.
What does PITI mean and why does it matter in Shelby County?
PITI stands for Principal, Interest, Taxes, and Insurance — the four components of a full monthly mortgage payment. Lenders qualify you based on your total PITI payment, not just principal and interest. In Shelby County, property taxes and insurance can add hundreds of dollars per month to your P&I payment, so it's essential to use a calculator that includes all four components.

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