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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 2 of 2 cities in Kentucky beat the national cost-of-living benchmark of 112. Lexington stands out at 98 on the index, with rent of $1,487/month and household income of $67,631. Assembled from 2026 Census, Zillow, and BLS data.
#1 Ranked: Lexington — cost index 98, rent $1,487/mo, income $67,631
2 of 2 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
The numbers are clear: 2 of 2 cities in Kentucky beat the national cost-of-living benchmark of 112. Lexington stands out at 98 on the index, with rent of $1,487/month and household income of $67,631. Assembled from 2026 Census, Zillow, and BLS data.
Value = income ÷ cost index. The national benchmark ratio is 718. Lexington delivers 690 — -4% more purchasing power per dollar earned. This metric catches cities that expensive-but-high-paying rankings miss: a $90K salary in a city with index 80 buys more than $120K in a city with index 150. Quietly competitive.
A closer look at Lexington: the cost index of 98 breaks down to a Utilities index of 91 (strongest category) and a Healthcare index of 102 (weakest). And as a general rule, median rent is $1,487/month — 22% below the national median — while household income sits at $67,631, meaning locals spend about 26% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room. One to watch.
It checks most boxes — but the healthcare costs are the asterisk. In Lexington, the healthcare index sits at 102 — not a dealbreaker, but worth knowing about.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home numbers (and that gap widens if you factor in state taxes).
| Rank | City | Value Ratio | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Lexington | 690 | 98 | $1,487 | Details |
| 2 | Louisville | 689 | 94 | $1,352 | Details |
320,154 residents · Kentucky
At $1,487/month for rent and a cost index of 98, Lexington is pretty much what you'd expect from a mid-size city in this part of the country. Income is $67,631. That's more or less in line with the region.
622,981 residents · Kentucky
Here's Louisville by the numbers — and there's a lot to like (and a little to watch). Cost index: 94. Rent: $1,352/month. Income: $64,731/year. Home price: $259,139. Population: 622,981. The strongest category is Housing at 84; the most expensive is Healthcare at 96. Translate that rent to annual numbers, and residents are saving renters $6,516 per year vs. the national median. This alone could tip the scales.
Value ratio = median household income ÷ cost of living index. A higher ratio means each dollar of income buys more locally. This captures purchasing power better than looking at income or cost alone. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Lexington ranks #1 in Kentucky for this analysis with a cost index of 98 and median income of $67,631.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Lexington (ranked #1) has a cost index of 98 and rent of $1,487/mo, while Louisville (ranked #2) has a cost index of 94 and rent of $1,352/mo — a 4-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Lexington is $1,487/month as of 2026, based on Zillow's Observed Rent Index. This is $408 below the national median of $1,895/month.
The median home price in Lexington is $322,743, which is 4.8× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
Kentucky has a 4% state income tax rate. Combined state and local sales tax averages 6%, and the effective property tax rate is 0.78%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.