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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
If there's one takeaway from this page, it's this: 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 level of affordability is getting rarer every…
#1 Ranked: Lexington — cost index 87, 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 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Lexington | 87 | $1,487 | Details |
| 2 | Louisville | 79 | $1,352 | Details |
If there's one takeaway from this page, it's this: 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 level of affordability is getting rarer every year.
Look, the numbers are clear: 2 of 2 cities in Kentucky beat the national cost-of-living benchmark of 111. Lexington stands out at 87 on the index, with rent of $1,487/month and household income of $67,631. Assembled from 2026 Census, Zillow, and BLS data.
What does daily life actually cost in Lexington? Start with the 26% rent-to-income ratio — tight but manageable for most households. On the category level, Housing (index 87) is where the real savings show up, while Healthcare (index 97) is the line item most likely to surprise newcomers. Income at $67,631 and homes at $322,743 round out a profile that ranks #1 for clear reasons.
The state-level view adds helpful context here. Here's the state-level backdrop: Kentucky averages a 83 cost index, $1,420/mo 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.
Look, Bottom line: Lexington leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And generally speaking, 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.
320,154 residents · Kentucky
Why Lexington ranks #1: the numbers tell a clear story. And most of the time, that's more or less in line with the region. At 87 on the cost index, residents save roughly 24% less than the typical American. Rent sits at $1,487/month while the median household pulls in $67,631/year. The Housing category is particularly strong at 87, though Healthcare (97) lags behind. Home prices average $322,743 — $144,627 below the national median (and that gap widens if you factor in state taxes).
622,981 residents · Kentucky
Dive into Louisville's numbers: cost index 79 — we had to double-check this one — (32 points below national average), rent $1,352/month, income $64,731, and a home price of $259,139. And as a general rule, 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 (a figure that keeps climbing, by the way).
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.