Gas furnace replacement cost in Memphis, TN
Installed, 80,000 BTU, 95%+ efficiency
A typical furnace (80,000 BTU, 95%+ efficiency) costs about $4,800 installed in the Memphis area, 1% below the national figure, because HVAC technicians here earn a median $27 an hour against $29 nationally.
Prices by size in Memphis
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 60,000 BTU, 80% efficiency | $3,650 | $4,050 | $5,300 | $4,100 |
| 60,000 BTU, 95%+ efficiency | $4,350 | $4,700 | $5,650 | $4,750 |
| 80,000 BTU, 80% efficiency | $3,700 | $4,000 | $4,900 | $4,050 |
| 80,000 BTU, 95%+ efficiency | $4,400 | $4,800 | $5,800 | $4,850 |
| 100,000 BTU, 80% efficiency | $3,900 | $4,200 | $5,350 | $4,250 |
| 100,000 BTU, 95%+ efficiency | $4,550 | $4,900 | $5,850 | $4,950 |
Local labor: what HVAC technicians earn here
| Hourly wage | Memphis metro | United States |
|---|---|---|
| 25th percentile | $23 | $23 |
| Median | $27 | $29 |
| 75th percentile | $35 | $37 |
The Memphis market
Building permits in Memphis and Shelby County are handled through the Division of Planning and Development's construction enforcement office (develop901.com), which publishes fees for building, electrical, mechanical and plumbing permits and runs a DIY corner for homeowners. Whether a like-for-like water heater, furnace, AC or heat pump replacement needs a permit, what it costs, and whether a homeowner can pull it could not be confirmed for this page, so check with that office first. Mississippi and Arkansas suburbs follow their own rules. Statewide, EIA's 2020 survey found Tennessee homes mostly electric: 60% heat with electricity, 35% with a central heat pump, 86% have central air and 74% heat water electrically. Memphis Light, Gas and Water is a TVA power distributor, and TVA's EnergyRight program offers equipment rebates.
About 52% of Tennessee homes heat with a furnace. In Memphis, a furnace usually shares its blower and coil with the AC, so when one fails, ask whether the other is close behind and price both. Ask bidders to list AFUE, venting and the coil match on every quote. Heat pumps are common in the area, so ask for a heat pump price alongside the furnace and compare running costs.
Permits in Memphis
We couldn't confirm all of Memphis's rules from official pages. Check with the building department before work starts.
| Permit for this job | Not stated on the city pages we checked (source) |
|---|---|
| Fee | Not stated on the city pages we checked |
| Who can pull it | Not stated on the city pages we checked |
| Inspection | Not stated on the city pages we checked |
Rebates in Tennessee
HEAR: announced, not open yet. HOMES: announced, not open yet. Source: TDEC Office of Energy Programs, checked October 13, 2026.
- TVA EnergyRight rebates: Heat pump $500-$800, central AC $200-$400, HPWH $900 via Quality Contractor Network
What these programs cover, and other states
Other systems in Memphis
- Gas tank water heater
- Gas tankless water heater
- Central air conditioner
- Heat pump (ducted, outdoor unit + air handler)
Gas furnace cost in other metros
Sources
- Memphis, TN permit source (water heater permit)
- Memphis, TN permit source (who can pull)
- Memphis, TN permit source: 2022 building fee schedule (fetch
- TVA EnergyRight: residential rebates
- EIA RECS 2020: Highlights for space heating fuel in U.S. homes by state
- EIA RECS 2020: Highlights for space heating in U.S. homes by state
- EIA RECS 2020: Highlights for air conditioning in U.S. homes by state
- EIA RECS 2020: Highlights for water heating in U.S. homes by state
- BLS OEWS May 2025, Memphis, TN-MS-AR (49-9021 HVAC mechanics and installers)
- DOE Consumer Furnaces Final Rule TSD (Sep 2023), Table 8.2.12 (2022$); labor share from App. 8D (11.97 person-hours, $705 of $2,527)