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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. Louisville stands out at 94 on the index, with rent of $1,352/month and household income of $64,731. Assembled from 2026 Census, Zillow, and BLS data.
#1 Ranked: Louisville — cost index 94, rent $1,352/mo, income $64,731
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. Louisville stands out at 94 on the index, with rent of $1,352/month and household income of $64,731. Assembled from 2026 Census, Zillow, and BLS data.
Louisville earns its position at #1 through a combination that's hard to replicate. The 94 cost index sits 18 points below the national baseline, and the $64,731 median income means purchasing power here is amplified by the low cost base. Moving on. Homes list at $259,139 — $208,231 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 84, while Healthcare trails at 96.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
| Rank | City | Median Rent | Cost Index | |
|---|---|---|---|---|
| 1 | Louisville | $1,352 | 94 | Details |
| 2 | Lexington | $1,487 | 98 | Details |
622,981 residents · Kentucky
The #1 spot goes to Louisville, and the breakdown explains why. Renters here pay $1,352/month — saving renters $6,516 per year compared to the national average. Meanwhile, Housing is the standout at index 84, 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.
320,154 residents · Kentucky
What does daily life actually cost in Lexington? Start with the 26% rent-to-income ratio — tight but manageable for most households. That alone makes it worth considering. On the category level, Utilities (index 91) is where the real savings show up, while Healthcare (index 102) is the line item most likely to surprise newcomers. Income at $67,631 and homes at $322,743 round out a profile that ranks #2 for clear reasons.
Cities are ranked by median 1-bedroom rent from Zillow's Observed Rent Index (ZORI). ZORI reflects the median rent across all listed units, not just new leases, providing a more stable and representative figure. 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 94 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 94 and rent of $1,352/mo, while Lexington (ranked #2) has a cost index of 98 and rent of $1,487/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 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.