With the Smoky Mountains as its backdrop, Knoxville is a scenic delight, but it's also a very affordable place to live. Housing costs are lower by about $70,000 than the national median. There's also very little income tax to whittle away at your spending power. The University of Tennessee is a big draw for attracting youthful and well-educated residents to Knoxville. For the kids, there are top-notch public schools in Knoxville to help further their education.

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