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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Real talk: Kentucky is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Louisville leads at an index of 79 with rent at just $1,352/month — 29% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026…
622,981 residents · Kentucky
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 (and that gap widens if you factor in state taxes).
320,154 residents · Kentucky
The #2 spot goes to Lexington, and the breakdown explains why. And with some exceptions, renters here pay $1,487/month — saving renters $4,896 per year compared to the national average. Meanwhile, Housing is the standout at index 87, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 97. A 26% rent-to-income ratio keeps most households inside the safe zone.
#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 | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Louisville | 79 | $1,352 | Details |
| 2 | Lexington | 87 | $1,487 | Details |
Real talk: Kentucky is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. Louisville leads at an index of 79 with rent at just $1,352/month — 29% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026.
Rent data is sourced from Zillow's Observed Rent Index (ZORI), which tracks the median rent across all active listings — not just new leases. This gives a more representative and stable signal than asking prices alone. Louisville: $1,352/mo, Lexington: $1,487/mo. The cheapest city here is $543 under the national median — that's $6,516/year in savings on rent alone.
Dive into Louisville's numbers: cost index 79 (32 points below national average), rent $1,352/month, income $64,731, and a home price of $259,139. The city's cost profile isn't flat — Housing is the cheapest category at 79, while Healthcare runs 96. As a major city with 622,981 residents, amenities and job markets are robust.
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.
Louisville ranks #1 in Kentucky for this analysis with a cost index of 79 and median income of $64,731.
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.