Cheapest Places to Live in Kentucky

Kentucky, with its rolling hills, horse farms, and rich cultural heritage, offers a charming and affordable living environment. Landmarks such as Mammoth Cave National Park, the Kentucky Derby at Churchill Downs, and the Louisville Slugger Museum highlight the state's attractions. The state's economy is diverse, driven by sectors such as agriculture, manufacturing, and bourbon production. Kentucky's tax structure includes relatively low income and property taxes, contributing to its overall affordability. Despite recent inflation and rising food costs, Kentucky remains one of the more affordable states in the southeastern region, especially in its smaller towns and rural areas. The combination of a diverse economy and manageable living costs makes Kentucky an attractive place for those seeking affordability and quality of life.

Affordable living in Kentucky can often be found in smaller towns and suburban areas where housing costs and everyday expenses are lower. These regions provide a more manageable cost of living, which is essential for maintaining financial stability. Affordability is a crucial factor in livability, as it allows residents to enjoy a comfortable standard of living without undue financial strain. Factors contributing to the cheapest places to live in Kentucky include lower housing demand in less populated areas, supportive local economic policies, and efficient public services. Utilizing C2ER's cost of living data helps to identify these affordable regions, ensuring that potential residents can make informed decisions. In a state known for its rich traditions and economic opportunities, finding affordable living options enhances the overall living experience.

Middlesborough Population: 9,242 14% cheaper than Kentucky average
Med. Home Value: $72,400 Med. Rent: $548 Med. Household Inc.: $29,114
With a cost of living index that is 14% cheaper than the state average, Middlesborough is the cheapest place to live in Kentucky. This area offers residents a remarkable blend of relatively low housing costs, budget-friendly grocery prices, affordable utilities, and economical health care services, making it an attractive destination for those seeking to stretch their dollars further. Whether you're a young professional, a growing family, or someone looking to enjoy a more relaxed pace of life, Middlesborough provides an inviting and cost-effective environment to call home.
Williamsburg Population: 5,266 13% cheaper than Kentucky average
Med. Home Value: $82,100 Med. Rent: $568 Med. Household Inc.: $30,391
The second most affordable city in Kentucky is Williamsburg and stands out for its cost-effective lifestyle. With an overall cost of living that is 13% cheaper than the Kentucky average, overall goods and services, housing, utilities, transportation and health care costs fall within a reasonable range. Median household income levels are steady and come in at , which helps to increase the purchasing power of the local residents.
Mayfield Population: 9,823 10% cheaper than Kentucky average
Med. Home Value: $104,200 Med. Rent: $588 Med. Household Inc.: $36,485
Mayfield lands in the #3 spot for the cheapest cities to live in Kentucky, with a cost of living that is 10% cheaper than the state average. With home prices averaging and rental rates coming in around , it helps that household income levels average about , which assists with paying the mortgage or your monthly rent. Its robust public school system and accessible health care further enhance its appeal, making it a great place to settle down. The strong community spirit and ample recreational opportunities add to its charm.
Monticello Population: 5,999 9% cheaper than Kentucky average
Med. Home Value: $97,300 Med. Rent: $565 Med. Household Inc.: $36,956
The cost of everyday grocery items, goods & services and of course housing, can have a significant impact on the overall cost of living in any area. Monticello offers a picturesque and affordable living environment, with a cost of living that is 9% cheaper than the state average. Everyday items like ground beef , eggs , coffee and pizza are all fairly reasonable compared to most other cities, which helps reduce those grocery bills. Home prices are also fairly affordable (compared to the state average), coming in at around .
Corbin Population: 7,558 8% cheaper than Kentucky average
Med. Home Value: $120,300 Med. Rent: $579 Med. Household Inc.: $39,260
For those wanting to live well on a budget, Corbin is ideal, with a cost of living that is 8% cheaper than the state average. Reasonable housing prices (compared to the Kentucky average) of and rental prices of are paired with economical goods and services and a range of free or low-cost recreational activities. The city's proactive economic development initiatives also ensure a steady stream of job opportunities, making it a smart choice for those prioritizing financial ease.
Russellville Population: 7,056 7% cheaper than Kentucky average
Med. Home Value: $98,600 Med. Rent: $573 Med. Household Inc.: $34,078
Russellville comes in at #6 on our list of the cheapest cities in Kentucky and is a haven for those seeking affordability without sacrificing convenience. The city is known for its discount shopping centers and budget-friendly dining options and has a cost of living that is 7% cheaper than Kentucky. The city's local markets provide fresh produce and other groceries at reduced prices, while parks and community centers offer free entertainment and leisure. This city is perfect for enjoying a high quality of life at a low cost.
Princeton Population: 6,087 6% cheaper than Kentucky average
Med. Home Value: $75,600 Med. Rent: $648 Med. Household Inc.: $45,047
With its cost-effective lifestyle, Princeton is an attractive destination for those looking to live affordably. The city boasts suitable housing costs, affordable healthcare, and a variety of budget-friendly dining options. The community is welcoming and vibrant, providing residents with a rich social life at a fraction of the cost. Median income levels come in at , which provides financial stability, purchasing power and increases the quality of life in the city.
Ashland Population: 20,449 6% cheaper than Kentucky average
Med. Home Value: $101,900 Med. Rent: $659 Med. Household Inc.: $42,639
A lower cost of living allows individuals to manage their expenses more effectively, reducing the risk of financial stress and debt. When essential costs such as housing, food, transportation, and healthcare are more affordable, people can achieve greater financial stability and resilience. Ashland fits that mold and has a cost of living that is 6% cheaper than Kentucky.
Lebanon Population: 5,960 4% cheaper than Kentucky average
Med. Home Value: $98,700 Med. Rent: $615 Med. Household Inc.: $30,168
Lower living costs can lead to a higher quality of life by making it easier for people to afford comfortable housing, nutritious food, and access to healthcare. It can also provide opportunities for better education, recreational activities, and community engagement, contributing to overall well-being. Lebanon is one of the most affordable cities in Kentucky, and has a cost of living that is 4% cheaper than the state average.
Flatwoods Population: 7,143 4% cheaper than Kentucky average
Med. Home Value: $96,500 Med. Rent: $861 Med. Household Inc.: $52,773
With a cost of living that is 4% cheaper than Kentucky, Flatwoods comes in at #10 on our list of the cheapest places to live in Kentucky. Financial stress is a significant factor affecting mental and physical health. By lowering the cost of living, individuals can experience reduced anxiety related to meeting monthly expenses, thereby improving overall health and well-being. The ability to afford basic necessities without constant worry contributes to a more balanced and fulfilling life.

Full list of the cheapest places in Kentucky

Rank Location Population COL Index Med. Home Value Med. Household Inc. 
1 Middlesborough 9,242 78 $72,400 $29,114
2 Williamsburg 5,266 79 $82,100 $30,391
3 Mayfield 9,823 82 $104,200 $36,485
4 Monticello 5,999 82 $97,300 $36,956
5 Corbin 7,558 83 $120,300 $39,260
6 Russellville 7,056 84 $98,600 $34,078
7 Princeton 6,087 85 $75,600 $45,047
8 Ashland 20,449 85 $101,900 $42,639
9 Lebanon 5,960 87 $98,700 $30,168
10 Flatwoods 7,143 87 $96,500 $52,773
11 Glasgow 14,394 87 $123,000 $37,479
12 Hopkinsville 31,052 87 $117,500 $39,743
13 Harrodsburg 8,480 88 $108,500 $41,901
14 Leitchfield 6,789 88 $109,100 $34,091
15 Franklin 8,909 89 $120,900 $45,983
16 Murray 19,254 89 $158,200 $31,827
17 Cynthiana 6,270 89 $120,400 $38,526
18 Somerset 11,548 89 $113,400 $27,739
19 Oak Grove 7,332 89 $115,400 $39,219
20 Shively 15,723 89 $109,300 $41,455
21 Paducah 24,947 90 $118,100 $39,061
22 Central City 5,770 90 $123,800 $51,063
23 Campbellsville 11,370 90 $129,400 $40,705
24 Henderson 28,469 90 $119,800 $40,360
25 London 8,058 91 $130,100 $40,574
26 Mount Sterling 7,190 91 $140,500 $41,474
27 Paris 9,776 91 $131,000 $41,234
28 Berea 15,773 91 $130,000 $44,357
29 Madisonville 18,801 91 $123,700 $43,193
30 Winchester 18,520 91 $133,600 $43,415
31 Covington 40,466 92 $120,100 $46,035
32 Dayton 5,550 92 $112,000 $53,345
33 Radcliff 22,796 92 $131,200 $45,463
34 Frankfort 27,705 92 $132,500 $50,602
35 Owensboro 59,796 92 $125,600 $46,193
36 Bardstown 13,169 92 $133,900 $52,604
37 Lawrenceburg 11,416 93 $142,100 $49,328
38 Danville 16,801 93 $145,000 $42,068
39 Maysville 8,752 93 $137,500 $36,480
40 Richmond 35,744 93 $148,900 $39,329
41 Highland Heights 7,372 94 $121,700 $41,324
42 Bellevue 5,786 94 $135,900 $68,819
43 Bowling Green 71,628 94 $168,000 $42,044
44 Morehead 7,653 94 $161,200 $29,779
45 Nicholasville 30,549 94 $149,500 $54,575
46 Hillview 9,066 94 $126,100 $56,523
47 Shepherdsville 13,757 95 $155,000 $64,798
48 Elsmere 8,617 95 $117,500 $55,916
49 Erlanger 19,106 95 $140,300 $70,589
50 Wilmore 6,339 96 $164,000 $65,964

Methodology

To formulate the list of the cheapest places to live in Kentucky, AreaVibes utilized comprehensive data from the Council for Community and Economic Research (C2ER) cost of living index. The report is released annually and offers a detailed comparison of living expenses across various urban areas. The data is meticulously gathered by over 300 independent researchers, ensuring a high level of accuracy and reliability. The C2ER index encompasses more than 60 goods and services, categorized into six essential areas that significantly impact the cost of living. These categories and their respective weightings in the index are as follows: goods and services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%), and utilities (10%).

Map of Cost of Living by State

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The map above is a great way to help you discover the most affordable states across the U.S. By highlighting states with the lowest cost of living, this map provides an in-depth look at where you can get the most value for your money. By visually representing this data, the map allows users to easily compare different regions and make informed decisions about potential relocations or investments. Additionally, it provides valuable insights into the economic conditions and lifestyle factors that influence these cost of living statistics. Whether you're planning a move, considering a new job, or simply curious about the economic landscape, this map is a useful resource for understanding and navigating the financial implications of living in different states.