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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Look, 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 — for better or worse — 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
Lexington rent up 5% over the past year
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
Look, 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 — for better or worse — and household income of $67,631. Assembled from 2026 Census, Zillow, and BLS data.
Lexington earns its position at #1 through a combination that's hard to replicate. The 98 cost index sits 14 points below the national baseline, and the $67,631 median income means purchasing power here is amplified by the low cost base. Homes list at $322,743 — $144,627 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 91, while Healthcare trails at 102 (and that gap widens if you factor in state taxes). A real contender.
The ranking uses a composite of 2026 data from Census Bureau population/income surveys, Zillow rent and home price indices, BLS salary benchmarks, and Tax Foundation tax rates. And broadly, lexington (index 98, rent $1,487); Louisville (index 94, rent $1,352). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
There's a catch worth understanding. Lexington rent up 5% over the past year. Rent in #1-ranked Lexington has increased from $1,419 to $1,487/mo over the past 12 months — a 5% increase. Rising costs may erode its top ranking over time. That's the kind of affordability that turns 'maybe someday' into 'next month.'
Zooming out, Here's the state-level backdrop: Kentucky averages a 96 cost index, $1,420/mo — which, honestly, is lower than you'd expect here — rent, and $66,181 income across 2 cities. And with some exceptions, that's $475 less than the national rent average. Appalachian value and bourbon country charm — and that context shapes every city in this ranking (that's pre-tax, of course).
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. And generally speaking, 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 Income | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Lexington | $67,631 | 98 | $1,487 | Details |
| 2 | Louisville | $64,731 | 94 | $1,352 | Details |
320,154 residents · Kentucky
The #1 spot goes to Lexington, and the breakdown explains why. Renters here pay $1,487/month — for better or worse — — saving renters $4,896 per year compared to the national average. Meanwhile, Utilities is the standout at index 91, keeping costs manageable. The weak spot? Healthcare at 102. A 26% rent-to-income ratio keeps most households inside the safe zone.
622,981 residents · Kentucky
Dive into Louisville's numbers: cost index 94 (18 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 84, while Healthcare runs 96. As a major city with 622,981 residents, amenities and job markets are robust.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Lexington | 4% | 6% | 0.78% | $49,820 |
2Louisville | 4% | 6% | 0.78% | $49,820 |
Cities are ranked by median household income from Census ACS data. We also show cost-adjusted purchasing power (income ÷ cost index) to reveal which high-income cities actually deliver the most real-world spending power. 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.