Loading
Assembling your view…
Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Kentucky is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And depending on your situation, lexington leads at an index of 87 — make of that what you will — with rent at just $1,487/month — 22% less than the $1,895 national median. Here are t…
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Lexington | 87 | $1,487 | Details |
| 2 | Louisville | 79 | $1,352 | Details |
#1 Ranked: Lexington — cost index 87, rent $1,487/mo, income $67,631
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
Kentucky is a genuine bargain: 2 of the 2 cities in this ranking come in below the national cost-of-living average. And depending on your situation, lexington leads at an index of 87 — make of that what you will — with rent at just $1,487/month — 22% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026 (that's pre-tax, of course).
Dive into Lexington's numbers: cost index 87 — which, honestly, is lower than you'd expect here — (24 points below national average), rent $1,487/month, income $67,631, and a home price of $322,743. And for many people, that's about what we'd expect given the state context. The city's cost profile isn't flat — Housing is the cheapest category at 87, while Healthcare runs 97. With 320,154 residents, it balances mid-size city convenience with manageable costs.
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. Lexington: $1,487/mo — which, honestly, is lower than you'd expect here — , Louisville: $1,352/mo. The cheapest city here is $408 under the national median — that's $4,896/year in savings on rent alone (which, to be fair, is a metric that favors smaller cities).
Now, stack that against what people actually earn here: Here's the state-level backdrop: Kentucky averages a 83 cost index, $1,420/mo — for better or worse — rent, and $66,181 income across 2 cities. That's $475 less than the national rent average. Appalachian value and bourbon country charm — and that context shapes every city in this ranking.
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.
320,154 residents · Kentucky
Here's Lexington by the numbers — and there's a lot to like (and a little to watch). Cost index: 87. Rent: $1,487/month. Income: $67,631/year. Home price: $322,743. Population: 320,154. The strongest category is Housing at 87; the most expensive is Healthcare at 97. Translate that rent to annual numbers, and residents are saving renters $4,896 per year vs. the national median. This is the type of edge you don't see advertised.
622,981 residents · Kentucky
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 (and that gap widens if you factor in state taxes). Below the radar, but not for long.
Cities with the highest rents in Kentucky are ranked from most expensive to least. High rent doesn't always mean unaffordable — we pair rent data with income to show the full picture. 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 87 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 87 and rent of $1,487/mo, while Louisville (ranked #2) has a cost index of 79 and rent of $1,352/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 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.