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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match Kentucky's value. 2 out of 2 cities undercut the national cost index of 111 — for better or worse — . Leading the pack: Louisville at index 79, where median rent of $1,352/month saves renters $6,516/year versus the national median.
Dollar for dollar, few states match Kentucky's value. 2 out of 2 cities undercut the national cost index of 111 — for better or worse — . Leading the pack: Louisville at index 79, where median rent of $1,352/month saves renters $6,516/year versus the national median.
The housing sub-index is derived from overall cost of living with regional BLS price adjustments. A score of 83 (the top-10 average here) means housing costs are about 17% below the national median. Louisville leads at 79, followed by Lexington (87) and Lexington (87). Note: a low housing index doesn't guarantee a low overall cost — check the full cost breakdown table below.
A closer look at Louisville: the cost index of 79 breaks down to a Housing index of 79 (strongest category) and a Healthcare index of 96 (weakest). Median rent is $1,352/month — 29% below the national median — while household income sits at $64,731, meaning locals spend about 25% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room.
Bottom line: Louisville leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. Click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
#1 Ranked: Louisville — cost index 79, rent $1,352/mo, income $64,731
2 of 2 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Housing Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Louisville | 79 | 79 | $1,352 | Details |
| 2 | Lexington | 87 | 87 | $1,487 | Details |
622,981 residents · Kentucky
The #1 spot goes to Louisville, and the breakdown explains why. Renters here pay $1,352/month — we had to double-check this one — — saving renters $6,516 per year compared to the national average. Meanwhile, Housing is the standout at index 79, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 96. A 25% rent-to-income ratio keeps most households inside the safe zone (and that gap widens if you factor in state taxes).
320,154 residents · Kentucky
Why Lexington ranks #2: the numbers tell a clear story. At 87 on the cost index, residents save roughly 24% less than the typical American. Rent sits at $1,487/month while the median household pulls in $67,631/year. The Housing category is particularly strong at 87, though Healthcare (97) lags behind. Home prices average $322,743 — $144,627 below the national median.
Cities are ranked by their housing cost sub-index within Kentucky. Each sub-index is derived from the overall cost of living with regional adjustment factors. 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.
Louisville ranks #1 in Kentucky for this analysis with a cost index of 79 and median income of $64,731.
Louisville, KY has the lowest housing index at 79, compared to the national average of 100.
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.
Louisville (ranked #1) has a cost index of 79 and rent of $1,352/mo, while Lexington (ranked #2) has a cost index of 87 and rent of $1,487/mo — a 8-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 Louisville is $1,352/month as of 2026, based on Zillow's Observed Rent Index. This is $543 below the national median of $1,895/month.
The median home price in Louisville is $259,139, which is 4.0× 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.