Ty Simpson, the controversial #13 overall pick in the 2026 NFL Draft, is headed from the deep south to the City of Angels and enters the league with a ~$25.41 million rookie contract and a ~$15 million signing bonus.
Before the now former Alabama quarterback takes a single snap for the Los Angeles Rams though, he faces one of the most dangerous financial and residency decisions in the entire draft class:
Should Ty Simpson establish residency in California, or avoid it at all costs?
For a 22‑year‑old quarterback with eight‑figure guarantees, the wrong address doesn’t just cost money.
It can cost tens of millions.
APSM breaks down Simpson’s real estate and residency options and suggests where the young man could establish his primary residence to maximize his net worth across his new NFL financial landscape:
- His home state (Tennessee)
- His college state (Alabama)
- His drafted state (California)
Does Ty Simpson Own Any Property?
Simpson was born and raised in Martin, Tennessee, starring at Westview High School before becoming one of the top QB recruits in the country.
He went on to attend Alabama, following in the foot steps of Jalen Milroe and now, became a first round selection, headed to one of the biggest entertainment, sports, and business markets in the world.
There are no public records of Simpson owning real estate in Tennessee, Alabama, or elsewhere.
Like most NIL‑era athletes, he likely:
- Rented during his college days
- Saved NIL earnings and sponsorship income
- Waited until the draft to make major real estate decisions
Now, with a ~$14.9 million signing bonus on the way, Simpson’s first real estate move is actually more of a financial fork in the road.
California, with 13.3% income tax, aggressive residency audits, and the highest cost of living across the country, is the single worst residency decision he could make if he is looking to maximize his net earnings.
Market #1: Tennessee (Home State)
- Median Home Price: ~$320,000
- Property Tax Rate: ~0.7%
- State Income Tax: 0%
- Cost of Living: ~10% below U.S. average
- Market Trend: 5-7% annual appreciation (Nashville, Franklin)
Pros
- 0% state income tax
- No tax on signing bonus
- Strong appreciation in Nashville metro
- Familiar environment
- Low property taxes
- No capital gains tax
Cons
- None financially, Tennessee is elite
APSM Take
Tennessee is one of the best financial homes in the entire draft.
If Simpson establishes Tennessee residency before his signing bonus hits, he protects every dollar from state income tax.
Market #2: Alabama (College State)
- Median Home Price: ~$220,000
- Property Tax Rate: ~0.4% (very low)
- State Income Tax: 5.0%
- Cost of Living: ~15% below U.S. average
- Market Trend: 2–4% annual appreciation
Pros
- Extremely low property taxes
- Affordable housing
- Familiar environment
Cons
- 5% income tax
- Lower appreciation
- Not ideal for high‑income earners
APSM Take
Alabama is fine, but not optimal.
On a ~$14.9M signing bonus:
- Alabama (5%) → ~$745K in state tax
- Tennessee (0%) → $0
Simpson could save ~$745K instantly by choosing Tennessee
over Los Angeles and Alabama.
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Market #3: California (Drafted State)
- Median Home Price: ~$800,000
- Property Tax Rate: ~0.75%
- State Income Tax: 13.3%
- Cost of Living: ~40% above U.S. average
- Market Trend: 3–6% annual appreciation in LA/OC
Pros
- Proximity to Rams HQ
- Strong luxury rental market
- Branding upside in LA
Cons
- 13.3% income tax, highest in America
- Aggressive residency audits
- Extremely high cost of living
- No financial justification for a rookie QB
- Worst tax environment in the NFL
APSM Take
Simpson should never establish California residency.
On a $14.9M signing bonus:
- California (13.3%) → ~$1.98M in state tax
- Tennessee (0%) → $0
That’s ~$2 million gone instantly if he slips.
This is the most important financial warning in the entire 2026 draft class.
Best Housing Markets, Rental Markets & Appreciation Rates
Tennessee
- Best Housing Markets: Nashville (Franklin, Brentwood), Chattanooga
- Best Rental Markets: Nashville metro
- Appreciation Rates: 5-7% annually
Alabama
- Best Housing Markets: Huntsville, Birmingham suburbs, Auburn
- Best Rental Markets: Huntsville, Tuscaloosa
- Appreciation Rates: 2-4% annually
California
- Best Housing Markets: LA (Santa Monica, Manhattan Beach, Irvine)
- Best Rental Markets: West LA, Hollywood, Long Beach
- Appreciation Rates: 3-6% annually
Property Tax & Capital Gains Considerations
Property Tax
- Tennessee: ~0.7%
- Alabama: ~0.4% (lowest)
- California: ~0.75%
Capital Gains
- Tennessee: 0%
- Alabama: 5%
- California: 13.3%
Residency Impact on Simpson’s Signing Bonus
- Gross Signing Bonus: $14,900,000
- Federal Tax (37%): $9,387,000
| Residency State | State Tax Rate | State Tax on Bonus | Estimated Net Signing Bonus |
|---|---|---|---|
| Tennessee | 0% | $0 | ~$9.39M |
| Alabama | 5% | $745,000 | ~$8.64M |
| California | 13.3% | $1.98M | ~$7.41M |
Tennessee saves Simpson:
- ~$745K vs Alabama
- ~$1.98 million vs California
This is a multi‑million‑dollar residency decision out the gate.
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Investment Scenario:
Turning $9.39M Into Real Wealth
Using the Tennessee residency scenario:
| ROI Rate (5 Years) | Projected Value |
|---|---|
| 10% Return | ~$15.1M |
| 12% Return | ~$16.5M |
| 15% Return | ~$18.9M |
| 20% Return | ~$23.4M |
If Simpson invests his entire net signing bonus and lives below his means, he could potentially turn ~$9.39M into $15-23M+ before touching a dollar.
This is how you beat the 70% of athletes who go broke after retirement.
Jock Tax Considerations
Across the nation pro-athletes have to pay jock-taxes to states that levy one and that they earn income in, but some states charge more than others.
In terms of real estate and housing markets, Los Angeles is considered a luxury market but has been in decline. Alabama does not have any major markets and Tennessee has been on the rise over the past decade, also presenting the best tax situation of the three states.
Simpson should maintain his residency in Tennessee through family ties and rent in Los Angeles during the season.
This is what young, rising superstar wideout Puka Nacua does as well.
Tennessee Advantage
- 0% income tax
- No tax on signing bonuses
- No capital gains tax
- Best long‑term wealth compounding
Alabama Disadvantage
- 5% income tax
- Lower appreciation
California Disadvantage
- 13.3% income tax
- Aggressive audits
- Worst tax environment in the NFL
APSM Real Estate Verdict
Tennessee Should Be His Primary Residence.
Alabama Should Be His Emotional Home, Not His Tax Home.
California Should Be a Rental Market Only.
If Ty Simpson wants to maximize his rookie earnings, protect his signing bonus, and build long‑term wealth, the move is simple:
- Keep Tennessee residency.
- Rent in California.
- Avoid California residency at all costs.
- Invest aggressively from Day 1.
Simpson has one of the most dangerous tax situations in the draft, but also one of the clearest solutions.
Suggested Real Estate Strategy for Ty Simpson
- Primary residence: Tennessee (Nashville, Franklin, Brentwood)
- Secondary: Alabama property for family or long‑term rental
- Work base: Short‑term rental in Los Angeles
- Invest: Majority of signing bonus into index funds + Tennessee real estate
- Goal: Turn ~$9.39M into $15-20M+ by Year 5 (extension year)
Simpson can be the rare California‑based rookie who keeps his money instead of giving it to the state when he is tied to the east coast.
Next Reads
- 2026 NFL Draft: Every 1st Round Contract Details, Net Income & Residency Analysis
- Fernando Mendoza Real Estate and Residency Analysis: Florida vs Indiana vs Nevada
- Giants Rookie Francis Mauigoa Has More Than Just Jaxon Dart to Protect Being Drafted to New York: 2026 NFL Draft Real Estate and Residency Analysis
- Puka Nacua’s LA Housing Decision: Renting, California Economics & the Playoff Premium
- Luka Dončić Traded to the Lakers for Anthony Davis
Credits
- Written By: Aidan Anderson
- Research & Analysis: Apostle Sports Media LLC
- Sources: NFL Draft Data, Sportico, Spotrac, Zillow / Redfin Market Research, ESPN, WSJ, APSM Proprietary Analysis
- Featured Image: Public Domain / Instagram / Wiki Commons
- Disclaimer: This article contains general financial information for educational purposes and does not constitute professional financial advice.
