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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 111. Louisville stands out at 79 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 79, rent $1,352/mo, income $64,731
2 of 2 cities keep rent under 30% of $150K gross income
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 111. Louisville stands out at 79 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 79 cost index sits 32 points below the national baseline, and the $64,731 median income means purchasing power here is amplified by the low cost base. Homes list at $259,139 — $208,231 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 79, while Healthcare trails at 96.
For all that, there's a counter-signal worth noting: State context matters: Kentucky's 2 cities average a 83 cost index with $1,420/month median rent and $66,181 household income. Appalachian value and bourbon country charm. That gap becomes clearer in the comparison below.
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.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Louisville | $1,352 | 11% | 79 | Details |
| 2 | Lexington | $1,487 | 12% | 87 | Details |
622,981 residents · Kentucky
Louisville earns its position at #1 through a combination that's hard to replicate. The 79 cost index sits 32 points below the national baseline, and the $64,731 — which, honestly, is lower than you'd expect here — median income means purchasing power here is amplified by the low cost base. Homes list at $259,139 — $208,231 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 79, while Healthcare trails at 96.
320,154 residents · Kentucky
Dive into Lexington's numbers: cost index 87 (24 points below national average), rent $1,487/month, income $67,631, and a home price of $322,743. 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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Louisville | 4% | 6% | 0.78% | $103,483 |
2Lexington | 4% | 6% | 0.78% | $103,483 |
We model what a $150K salary looks like after taxes in each city: federal income tax (marginal brackets), FICA (7.65%), and state income tax. Then we compare take-home against local rent and costs to determine where the salary stretches furthest. 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.
Yes. On a $150K salary in Louisville, rent would consume about 11% of your gross monthly income. Financial experts recommend keeping rent under 30%. You're well within that guideline.
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.
After federal taxes, FICA (7.65%), and 4% state income tax, estimated take-home on $150K in Louisville is approximately $103,483/year ($8,624/month). After median rent of $1,352/month, you'd have roughly $87,259/year for all other expenses.
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.