The value of an acre in Tennessee varies dramatically based on location, land type, and intended use. Recent data shows that land prices across the Volunteer State have seen notable increases, making it more important than ever to understand what drives these values. According to the USDA Land Values 2024 Summary, Tennessee farm real estate reached $5,710 per acre, representing a significant 10.7% increase from the previous year. This growth rate topped the nation, reflecting the state’s growing appeal to both agricultural producers and land investors.

Location remains the single most important factor in determining land worth in Tennessee. Urban areas command premium prices, while rural agricultural land offers more affordable entry points for buyers. The topography of the land, access to infrastructure, and zoning regulations all play substantial roles in final valuations. Mossy Oak Properties specializes in helping buyers navigate this complex market, offering expertise in finding everything from recreational land for sale to productive agricultural properties and valuable timber tracts throughout Tennessee’s diverse regions.

Tennessee Land Prices by Location

Nashville Area

The Nashville metropolitan area continues to drive some of the highest land values in Tennessee. Residential land in Davidson County typically ranges from $175,000 to $300,000 per acre, with premium locations near downtown commanding even higher prices. The rapid population growth and booming economy have created intense competition for developable land. Commercial properties in downtown Nashville can reach up to $20 million per acre in prime locations, reflecting the city’s status as a major economic hub.

Memphis Region

West Tennessee offers more affordable land options compared to the Nashville area. Residential land in Shelby County averages between $25,000 and $60,000 per acre, making it attractive to both developers and individual buyers. Suburban areas around Memphis have experienced steady price increases, though they remain more accessible than Middle Tennessee markets. The region benefits from Mississippi River access and transportation infrastructure that supports both residential and commercial development.

Knoxville Region

East Tennessee land values in Knox County generally range from $40,000 to $100,000 per acre for residential purposes, depending on proximity to downtown Knoxville and the University of Tennessee. The area’s natural beauty, with easy access to the Great Smoky Mountains, adds value to recreational and residential properties. Scenic properties with mountain views or proximity to outdoor recreation areas often demand premium prices within this range.

Rural Tennessee Land

Rural areas across Tennessee offer the most affordable land options, particularly for those seeking farms for sale or recreational properties. Forested and recreational land typically ranges from $4,500 to $10,000 per acre, depending on access and amenities. Properties with limited road access or utility availability generally fall on the lower end of this range. Rural land suitable for hunting, timber production, or remote cabin sites remains popular among buyers seeking recreational opportunities outside urban areas.

Farmland and Agricultural Acreage Prices

Agricultural land values in Tennessee have experienced remarkable growth in recent years. According to the USDA 2024 Land Values Summary, Tennessee cropland values reached $5,610 per acre, marking a 10.9% increase from 2023 and leading the nation in growth rate. Pastureland values averaged $5,360 per acre, reflecting strong demand for grazing operations throughout the state.

The state’s diverse agricultural economy supports these higher valuations. Tennessee ranks among the top states for cattle production, soybeans, and specialty crops, creating consistent demand for quality farmland. Counties known for row crop production, such as those in West Tennessee, often see higher per-acre values due to fertile soils and established agricultural infrastructure. Meanwhile, counties better suited for livestock operations may have slightly lower land values but offer excellent opportunities for cattle ranching and hay production. The combination of favorable climate, adequate rainfall, and diverse soil types makes Tennessee farmland attractive to both local farmers and out-of-state agricultural investors.

What Impacts the Price of Land in Tennessee?

Zoning restrictions and development rights: Commercial zoning near Interstate exits can triple land values compared to agricultural designations. Industrial zoning in counties like Rutherford or Wilson can push prices above $100,000 per acre due to logistics advantages.
Topography and drainage characteristics: Level farmland in West Tennessee river bottoms commands premium prices for row crop production. Conversely, steep Appalachian slopes may sell for $2,000 per acre but gain value with scenic overlooks of the Cumberland Gap or Great Smoky Mountains.
Road access quality and legal easements: Properties with direct access to state highways like US-70 or I-40 frontage roads sell for significantly more than landlocked parcels. Four-wheel drive access roads can cut land values by 30-50% in rural counties.
Utility infrastructure and internet connectivity: Three-phase electrical service attracts agricultural operations requiring grain dryers or irrigation systems. High-speed fiber internet adds value in rural areas as remote work becomes more common.
Distance to major employment centers: Land within 45 minutes of Nashville, Knoxville, or Chattanooga carries location premiums. Properties near major employers like Nissan in Smyrna or Volkswagen in Chattanooga see increased demand from workers seeking rural living.
Natural resource potential: Mature hardwood timber stands can add $3,000-$5,000 per acre in immediate harvest value. Properties with limestone quarry potential or natural gas rights command additional premiums in certain Tennessee counties.
Water access and recreational features: Tennessee River frontage, private lake access, or trout streams significantly boost recreational property values. Spring-fed creeks support livestock operations and increase agricultural land desirability.

Is Buying Land in Tennessee a Good Investment?

Tennessee land represents an attractive investment opportunity for several reasons. The state’s land values remain affordable compared to national averages, particularly in rural areas where quality recreational and agricultural properties can still be found at reasonable prices. The market for vacation properties, hunting land, and farm-to-table operations continues growing as more people seek rural lifestyle opportunities.

Population growth and economic development across Tennessee support long-term land value appreciation. Major cities like Nashville and Knoxville continue attracting new residents and businesses, creating sustained demand for both residential and commercial land. For investors priced out of neighboring states like North Carolina or Georgia, Tennessee offers similar geographic advantages at more accessible price points. Mossy Oak Properties’ extensive listings allow buyers to filter properties by county, intended use, and acreage size, making it easier to find Tennessee land for sale that meets specific investment criteria and budget requirements.