Receiving orders to Tennessee? You're in for a treat. As a military-friendly state with diverse landscapes, vibrant cities, and significant tax advantages, Tennessee offers an exceptional quality of life for active duty service members, veterans, and their families.
This comprehensive guide will help you navigate your PCS move to one of Tennessee's military installations, understand the unique benefits of living in the Volunteer State, and discover which communities might be the perfect fit for your next chapter.
Tennessee's Military Installations: What You Need to Know
Tennessee is home to three major military installations, each serving different branches and offering unique opportunities and communities.
Fort Campbell (Clarksville, TN)
Mission & Units: While technically straddling the Tennessee-Kentucky border, Fort Campbell primarily operates in Tennessee and serves as home to the legendary 101st Airborne Division (Air Assault), the 5th Special Forces Group, and the 160th Special Operations Aviation Regiment (Night Stalkers).
Size & Population: Spanning over 105,000 acres, Fort Campbell supports approximately 30,000 active duty soldiers and 53,000 family members.
Base Amenities:
- Commissary and PX
- Blanchfield Army Community Hospital
- Multiple fitness centers
- MWR facilities including pools, golf course, and bowling alley
- Family housing through Campbell Crossing
- DoD schools for on-post families
Off-Base Communities: Most military families live in Clarksville, TN or Oak Grove, KY, with easy access to post gates.
Arnold Air Force Base (Tullahoma, TN)
Mission & Units: Home to the Arnold Engineering Development Complex (AEDC), this installation is the largest and most advanced aerospace testing facility in the United States.
Size & Population: While smaller than Fort Campbell, Arnold AFB employs approximately 3,000 personnel, including active duty Air Force, civilian employees, and contractors.
Base Amenities:
- Base Exchange
- Recreation area with camping, fishing, and hunting
- Fitness center
- Medical clinic (non-emergency services)
Off-Base Communities: Tullahoma, Manchester, and Winchester are the primary communities serving Arnold AFB personnel.
Naval Support Activity Mid-South (Millington, TN)
Mission & Units: NSA Mid-South houses Navy Personnel Command, Navy Recruiting Command, and various other Navy organizations focused on human resources and support functions.
Size & Population: Supporting approximately 7,500 military, civilian, and contract personnel.
Base Amenities:
- Commissary and Navy Exchange
- MWR facilities including fitness center and pool
- Navy Lake Recreation Area
- Medical and dental clinics
Off-Base Communities: Millington and the northern suburbs of Memphis are popular living locations for NSA Mid-South personnel.
Financial Benefits for Military in Tennessee
Tennessee offers significant financial advantages for military families that can substantially impact your quality of life and long-term financial planning.
No State Income Tax
Tennessee is one of only nine states with no state income tax on wages or salaries. This means your military pay goes further, essentially giving you an automatic raise compared to many other duty stations.
Military-Specific Vehicle Tax Benefits
Active duty military members and veterans with a service-connected disability rating can receive substantial tax breaks on vehicle purchases:
- Active duty personnel stationed in Tennessee: Exempt from paying vehicle sales tax on one vehicle
- Disabled veterans (100% service-connected): Exempt from paying registration fees and vehicle sales tax on two vehicles
- Disabled veterans (partially service-connected): Reduced registration fees based on disability rating
Property Tax Relief Programs
Tennessee offers property tax relief programs specifically for veterans with service-connected disabilities and their surviving spouses. Depending on your disability rating, you may qualify for a reduction in property taxes on your primary residence.
Housing Markets Near Tennessee Military Bases
Understanding the current housing market is essential for making informed decisions during your PCS move. Here's a breakdown of median home prices and rental markets near each installation:
Fort Campbell/Clarksville Area
- Median Home Price: $310,000 (50% lower than Nashville)
- Average Rent (3BR): $1,400-1,800/month
- Growing Neighborhoods: St. Bethlehem, Sango, Northeast Clarksville
- BAH Compatibility: Current BAH rates generally align well with the local market
Arnold AFB/Tullahoma Area
- Median Home Price: $250,000
- Average Rent (3BR): $1,200-1,500/month
- Growing Neighborhoods: Lakewood Park, Country Club, Westwood
- BAH Compatibility: Excellent BAH-to-housing cost ratio in this area
NSA Mid-South/Millington Area
- Median Home Price: $230,000
- Average Rent (3BR): $1,300-1,600/month
- Growing Neighborhoods: Easley Estates, Woodstock area
- BAH Compatibility: Strong purchasing power with current BAH rates
Other Military-Friendly Communities
- Nashville: $605,000 median home price (premium market)
- Murfreesboro: $460,000 median home price
- Lebanon: $415,000 median home price
VA Loan Tip: Tennessee's housing markets are generally VA Loan-friendly. Work with a military-experienced real estate agent to navigate the appraisal process smoothly.
Tennessee's Education Landscape
Education quality is a top priority for military families. Tennessee has made remarkable strides in improving its educational systems in recent years.
K-12 Education Highlights
- Tennessee ranks as the fastest-improving state in K-12 education nationally
- Strong post-pandemic academic recovery compared to other states
- Implementation of the "Tennessee Investment in Student Achievement" funding formula to better support students
Top School Districts Near Military Installations
Fort Campbell Area:
- Clarksville-Montgomery County School System
- Notable schools: Rossview High School, Hazelwood Elementary
Arnold AFB Area:
- Tullahoma City Schools (highly rated)
- Coffee County Schools
- Notable schools: Tullahoma High School, East Middle School
NSA Mid-South Area:
- Millington Municipal Schools
- Tipton County Schools
- Notable schools: Millington Central High, Brighton High School
Higher Education Opportunities
Tennessee offers the Tennessee Promise and Tennessee Reconnect programs that provide tuition-free community college education to residents, which can be an excellent benefit for military spouses and dependents.
Major universities near military installations include:
- Austin Peay State University (Clarksville)
- Middle Tennessee State University (Murfreesboro)
- University of Memphis
- Tennessee Tech University (Cookeville)
- University of Tennessee system campuses
