Want Kentucky’s scenic countryside vibe without Louisville’s high prices? Don’t give up on the dream. You can afford a house in the Bluegrass State if you know where to look.
Your perfect home could be a family-friendly house in Princeton or a starter home in Owensboro, Kentucky’s tourism hub. If you’re retiring, look at homes for sale in Somerset to enjoy a low-cost coastal lifestyle, with median home prices under $185,000.
After assessing hundreds of cities, we’ve ranked the 10 most affordable places to live in Kentucky to help you find a home that fits your budget.
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Key Takeaways
- Princeton is the most affordable city: Princeton’s cost of living is 4% lower than the state average. With a median home price of $132,000, it is the cheapest place to live in Princeton.
- Owensboro is the best city for young professionals: With active downtown and a diverse job market, Owensboro is a prime spot to build a career.
- For families, Madisonville is a great choice: With top-notch schools, safe neighborhoods, and affordable family living, Madisonville is an ideal place to raise a family on a budget.
- Retirees should consider Somerset: Retirees can enjoy a relaxed lakefront lifestyle, with homes typically ranging from $245,000 to $345,000.
- Don’t forget Kentucky’s “tornado tax”: Insurance averages $1,200–$1,800/year with wind/hail deductibles of 1–2% of home value, and flood isn’t covered. A $200,000 home could cost $2,000–$4,000 out-of-pocket after a major storm.
10 Cheapest Places to Live in Kentucky in 2026
| City | Median Home Value | Median Home Rent | Cost of Living Compared to State Average | Affordability Score (Out of 10) |
|---|---|---|---|---|
| 1. Princeton | $132,000 | $719 | 4% ⬇️ | 8.1 |
| 2. Monticello | $88,750 | $900 | 6% ⬇️ | 7.6 |
| 3. Olive Hill | $102,000 | $1,100 | 21% ⬇️ | 7.5 |
| 4. Williamsburg | $21,000 | $1,250 | 13% ⬇️ | 6.9 |
| 5. Ashland | $192,000 | $1,000 | 2% ⬇️ | 6.5 |
| 6. Middlesborough | $170,500 | $1,200 | 6% ⬆️ | 6.1 |
| 7. Somerset | $185,000 | $1,200 | 5% ⬇️ | 6.1 |
| 8. Maysville | $246,000 | $900 | 2% ⬇️ | 6 |
| 9. Owensboro | $226,250 | $1,350 | 1% ⬆️ | 5 |
| 10. Madisonville | $225,000 | $1,500 | 9% ⬇️ | 4.9 |
How We Ranked the Most Affordable Places to Live in Kentucky
To identify the cheap places to live in Kentucky, we carried out an in-depth analysis using multiple reliable data sources and indicators of affordability.
Data Sources:
- Median Home Prices: We used Houzeo’s Kentucky Housing Market report and double-checked the numbers with the Housing Engagement & Research Initiative (HERI), University of Kentucky.
- Median Rent: We got the rent data from C2ER, which publishes the national Cost of Living Index. This was verified every few months to make sure it’s accurate.
- Overall Cost of Living: We covered 6 big spending categories— housing, groceries, utilities, transportation, healthcare, and miscellaneous goods— from C2ER and Houzeo’s Cost of Living in Kentucky Calculator. We then compared everything to the U.S. average of 100.
We studied housing data from 2022 to 2025 to identify cities that remained affordable over time, not just during short dips in prices. Furthermore, each city’s data was also cross-checked with HUD and state economic reports.
All our information is up to date as of 2025, ensuring you receive the most current insights.
Affordability Scoring:
We built a simple scoring system that focuses on what really matters:
- Median Home Price (40%)
- Median Rent (35%)
- Cost of Living (25%)
This way, we can clearly show which Kentucky cities give you the best value for your money. You can also check out our score breakdown to see how each city was ranked.
Image credits: All blog images are sourced from Freepik.
10 Cheapest Places to Live in Kentucky
Residents enjoy access to scenic parks, local markets, and community events that create a relaxed lifestyle. With convenient road connections to nearby cities, homes for sale in Princeton appeal to those seeking comfort, accessibility, and modest living expenses.
- Littlebrook: A quiet, tree-lined residential area in north Princeton with a suburban feel and easy access to Herrontown Woods, Smoyer Park, and the neighborhood’s Littlebrook Elementary School on Magnolia Lane.
- Springdale: It’s a leafy residential pocket near the Institute for Advanced Study and Springdale Road, with a mix of older colonials and university-affiliated housing around College Road West.
- Riverside: This is a primarily residential neighborhood in east Princeton anchored by Riverside Elementary School and near the Delaware and Raritan Canal towpath, offering a suburban feel with strong access to green space.
- Job Market: The economy is anchored by manufacturing, health care and social assistance, and retail trade. Major employers are Hydro-Gear, Treehouse Foods, Caldwell County Hospital, and local logistics and warehousing firms.
- Recreation: Recreation in Princeton includes historic and community-focused spaces such as Big Springs, the renovated City‑County Park complex with ball fields and a public pool, and Dotson Park. Residents also visit sites like the Trail of Tears park area and the Caldwell County Railroad Museum.
- Higher-Than-Average Crime Rate: Princeton reports a total crime rate around 1,733 incidents per 100,000 residents, which is higher than the Kentucky average and may concern safety-focused movers.
- Limited Local Wages and Incomes: Median household income is about 46,775 USD, which is below the national average and can limit earning potential despite lower living costs.
- Small-Town Job Market: The local economy relies on a relatively narrow base of employers in manufacturing, health care, and retail, which can mean fewer specialized or high-paying roles
The city offers a relaxed rural lifestyle with access to Lake Cumberland’s 1,200 miles of shoreline for boating, fishing, and nearby parks like Monticello-Wayne County Park. Local public transportation via RTEC services supports accessibility for shopping, medical needs, and employment in this small community.
- Steubenville: Rural residential neighborhood with historic sites like the former Steubenville School and Pleasant View Baptist Church. Appeals due to proximity to Wayne County schools such as Bell Elementary and access to Monticello-Wayne County Memorial Park.
- Monticello East: It’s a suburban area east of downtown featuring single-family homes. It provides quick access to Monticello Elementary School and downtown amenities, including the Wayne County Farmers Market on Saturdays.
- Bethesda: A quiet, low-density rural neighborhood with affordable housing. It’s a near Wayne County Middle School and Mill Springs Mill Park, site of the annual Monticello Women’s Club Cornbread Festival.
- Job Market: The job market centers on manufacturing (textiles, auto parts, wood products), retail, and education/health services. Key employers include Gromont Inc., Monticello Flooring & Lumber, Lakeview Yachts, Fantasy Yachts, Wayne County Schools, and Patriot Industries.
- Recreation: Recreation features Liberty Park’s Veteran’s Wall for reflection, Asher Hunting Access Area for wildlife viewing, and Zilpo Road Scenic Byway for drives. Lake Cumberland supports houseboating, kayaking, and the annual Lake Cumberland Poker Run.
- High Poverty Rate: Monticello’s poverty rate stands at 34.93%, with median household income of $37,733, limiting economic opportunities and community resources.
- Limited Job Prospects: The local economy relies on low-wage manufacturing and retail jobs, with median per capita income at $30,734 and few high-skill positions available.
- Few Amenities: Residents face scarce shopping, dining, and entertainment options beyond basics like Marshalls at Cumberland Crossing, requiring drives to Somerset or larger cities.
Olive Hill offers an affordable cost of living with access to scenic parks, outdoor trails, and a laid-back small-town lifestyle. With convenient road connections to nearby cities, homes for sale in Olive Hill are ideal for families and retirees.
- Clark Hill: It’s a quiet rural residential area on the outskirts of Olive Hill. Appeals to buyers for proximity to Olive Hill Elementary School and Olive Hill City Park.
- Boone Furnace: This is a lower-middle-income rural neighborhood north of town near Tygarts State Forest. Attracts families due to access to West Carter Middle School and Carter Caves State Resort Park trails.
- Brinegar: These are secluded residential zones with low population density west of Olive Hill. Buyers value nearness to West Carter High School and local events like the Shriners Bluegrass Festival.
- Job Market: The economy centers on manufacturing, healthcare, and retail, with over 2,400 jobs listed in Olive Hill as of late 2025. Although the county’s unemployment rate stood at 8.3% annually in 2024, above the state average of 5.1%, there was a slight declines noted into 2025.
- Recreation: Tygarts State Forest provides hiking and multi-use trails like the 10-mile Kiser Hollow Trail, while nearby Grayson Lake State Park offers boating and fishing on its reservoir. Additionally, the Olive Hill Center for the Arts & Heritage hosts community exhibits.
- High Poverty and Unemployment: Carter County’s unemployment rate reached 8.3% in 2024, well above Kentucky’s 5.1% average, reflecting limited local job opportunities in manufacturing and retail.
- Drug Issues Prevalent: Residents report a significant drug problem in the area, described as average for small communities but a notable concern amid poverty rates of 16.3%.
- Few Local Jobs: Most employment requires commuting 30 minutes or more to nearby towns, as Olive Hill lacks diverse job options beyond factories and basic services.
The city’s compact layout ensures easy commuting and a relaxed pace of life. With numerous homes for sale in Williamsburg, it appeals to those seeking budget-friendly living amid a peaceful, connected community.
- Ayers: This neighborhood features a student-oriented vibe due to its proximity to University of the Cumberlands, a private Christian university. Residents may value access to university facilities, campus events, and Williamsburg City School.
- Clio: It presents a quiet residential feel with low population density and single-family homes built in 1970-1999. It is near Goldbug Pavilion for the Whitley County Farmer’s Market on Saturdays and Whitley County School District schools.
- Highlands: It has a lower-middle income, residential suburban character. It provides easy access to local events such as the annual Old Fashioned Trading Days festival in September and Whitley County Fair in July.
- Job Market: Key industries in Williamsburg, KY include manufacturing, retail, healthcare, and education. Major employers encompass University of the Cumberlands, Williamsburg Plastics, Dayspring Health, Pilot Company, The Mint Gaming Hall Cumberland, Dollar General, and AutoZone.
- Recreation: Popular spots include Big South Fork National River and Recreation Area for hiking to Split Bow Arch, Devils Jump Overlook, and Bear Creek Overlook. Plus, the Big South Fork Scenic Railway provides rail tours, alongside fishing and mountain biking in the park.
- High Poverty and Unemployment: Williamsburg has a poverty rate of about 33% and unemployment around 12%, significantly higher than national averages, limiting economic opportunities.
- Elevated Crime Rates: Violent crime occurs at a rate of 3.1 per 1,000 residents, with aggravated assault prominent, exceeding many similar-sized communities.
- Limited Healthcare Access: Specialized medical services are scarce, requiring travel to larger cities for advanced care beyond basic facilities like Williamsburg Family Medicine Center.
Its location on the Ohio River provides riverfront parks like Central Park and Riverfront Park, offering accessible trails, playgrounds, and green spaces amid Appalachian foothills. Affordable public transit, including accessible paratransit buses covering Ashland and nearby areas, enhances accessibility.
- Ashland City Center: It’s a urban-residential mix with walkable streets and commercial activity near Central Park. Appeals due to proximity to Ashland Middle School, Paramount Arts Center, and Summer Motion Festival events.
- Central Avenue: A quiet residential corridor with strong community feel and single-family homes. It’s near Oakview Elementary School and Johnny Oliverio Park’s baseball fields for family recreation.
- Normal: It’s a suburban enclave with quiet, tree-lined streets west of the Ohio River. Close to industrial jobs, downtown Ashland (3 miles), and easy access to Huntington
- Job Market: Key industries include healthcare, manufacturing, retail, and logistics, with unemployment at 5.1% in September 2025. Major employers are King’s Daughters Medical Center, Ashland Oil remnants, Walmart, and AK Steel, supporting roles like registered nurses and CDL drivers.
- Recreation: Popular spots include Highlands Museum and Discovery Center for local history exhibits, Paramount Arts Center for theater productions, and Johnny Oliverio Park for baseball fields. Rotary Park Trails offer hiking amid greenery, reflecting community outdoor routines.
- Limited Job Opportunities: The local economy centers on manufacturing and healthcare with few high-skill positions, leading residents to commute to Huntington, WV, for better career prospects.
- Flood Risk: 19.6% of properties face flooding over the next 30 years due to Ohio River proximity and Appalachian rainfall patterns.
- Limited Public Transit: Bus services like Ashland Bus System paratransit exist but coverage is sparse, requiring personal vehicles for most daily needs.
Middlesborough offers one of the most affordable costs of living in the region, with low housing prices and a relaxed small-town atmosphere. Surrounded by scenic mountains and trails, it provides easy access to outdoor recreation while maintaining essential urban conveniences.
- Noetown: It is a quiet, largely residential pocket on Middlesboro’s north side, with local streets leading to green space at Noetown Park. It is sitting within a short drive of downtown services and schools such as Middlesboro High School and Middlesboro Middle School.
- Stony Fork Junction: This is a a more rural, unincorporated area of Bell County, characterized by wooded hillsides. Buyers often look here for seclusion and easier access to outdoor destinations like Pine Mountain State Resort Park and Blanton Forest State Nature Preserve.
- Central Middlesboro: It covers the historic downtown and nearby residential blocks along and around Cumberland Avenue. It offers walkable proximity to Main Street shops and community events like the Levitt AMP Middlesboro Music Series.
- Job Market: Key industries in Middlesboro include healthcare, retail, manufacturing, and defense. Major employers consist of Middlesboro ARH Hospital, a 96-bed facility, Walmart; Food City; and Middlesboro Arsenal.
- Recreation: Popular spots include Pine Mountain State Resort Park in nearby Pineville and the Laurel Cove Amphitheater for events like the Kentucky Mountain Laurel Festival. Kentucky Ridge State Forest offers 15,000 acres for hiking, horseback riding, primitive camping, and hunting.
- Limited Job Opportunities: Middlesboro’s economy relies on healthcare, retail, and manufacturing with scarce well-paying positions outside major employers like ARH Hospital, often requiring 30-60 minute commutes for better options.
- Opioid Crisis Presence: The area faces significant drug issues, particularly opioids, contributing to higher crime rates and community safety concerns reported by residents.
- Poor School Performance: Local schools like Middlesboro High have low graduation rates around 45-50% and limited college readiness, ranking below state benchmarks.
Somerset, KY provides convenient access via U.S. Route 27 and Kentucky Route 80 along with small-town charm amid scenic lakes, parks, and outdoor recreation. Those considering homes for sale in Somerset will find options in a setting that balances natural appeal with practical connectivity.
- North Maple Neighborhood: A quiet residential area with single-family homes near North Maple Street. Appeals to families due to proximity to Pulaski County High School and Citizens Park playground.
- Briarwood Area: This suburban subdivision off Briarwood Drive offers access to Somerset Independent schools and nearby Somersport Park sports facilities.
- Rosewood Neighborhood: A calm Calm, family-oriented locale around Rosewood Neighborhood Park. Attracts residents for its walking paths, playground, and closeness to downtown and Master Musicians Festival events.
- Job Market: Key industries in Somerset include healthcare, manufacturing, and retail, with a 4.7% unemployment rate as of recent estimates. Major employers comprise Lake Cumberland Regional Hospital, Toyotetsu North America, and Hinkle Contracting.
- Recreation: Popular spots include General Burnside State Park for lake access, camping, and golf overlooking Lake Cumberland; Rocky Hollow Recreation Center with fitness classes and indoor facilities; and SomerSplash Water Park for slides and lazy river.
- Higher Poverty and Lower Wages: Somerset has a relatively high poverty rate of about 30%, and wages in many sectors are below national averages, which can limit earning potential and economic mobility.
- Crime and Safety Concerns: Crime rates, particularly property crime, are higher than in many Kentucky communities, with about a 1 in 39 chance of being a victim of violent or property crime.
- Limited Big-City Amenities and Nightlife: Somerset offers fewer higher-end dining, shopping, and nightlife options than larger urban areas, which may feel limiting for some residents.
Maysville, KY is one of the cheapest places to live thanks to its low cost of housing, scenic Ohio River views, and small-town charm. Residents enjoy accessible parks, historic districts, and convenient transport links to nearby cities.
- Country Club Heights: It’s a suburban residential neighborhood with lower-middle income homes near Maysville Country Club. Appeals to buyers for proximity to Charles Straub Elementary School and Mason County Middle School on Chenault Drive, plus Maysville-Mason County Recreation Park.
- Old Washington: A quiet historic village south of Maysville featuring 1700s log cabins, shops, and museums. Buyers value access to Maysville-Mason County Recreation Park nearby and events like the Simon Kenton Festival.
- Maysville Downtown: An urban historic district along the Ohio River with preserved 19th-century architecture, theaters, and the Kentucky Gateway Museum Center. Attracts buyers close to St. Patrick School and amenities like Russell Theatre.
- Job Market: Key industries in Maysville include manufacturing (automotive parts, agritech, plastics), healthcare, and logistics. Major employers consist of Mitsubishi Electric, EnviroFlight, and International Paper.
- Recreation: Popular spots include Kentucky Gateway Museum Center, The Old Pogue Distillery, National Underground Railroad Museum, and Russell Theatre. Carter Caves State Resort Park and Blue Licks Battlefield State Resort Park offer hiking and history nearby.
- Elevated Crime Rates: Maysville records a property crime rate of 1 in 39 chance and violent crime of 1 in 483, higher than many similar-sized communities.
- Drug Challenges: The area faces notable issues with drug use and abuse, a persistent problem in Appalachian Kentucky regions like Maysville.
- Subpar Schools: Mason County High School ranks #6,306 nationally with test scores below state averages, amid reports of bullying issues.
Owensboro, KY is known for its affordable cost of living, offering residents a comfortable lifestyle with access to scenic riverfront parks, family-friendly recreation, and a lively arts scene. The city’s compact layout and dependable transport make commuting simple and convenient.
- Hillcrest: It features a relaxed suburban atmosphere away from downtown bustle, with residential streets offering convenient access to everyday needs. Buyers value its proximity to Daviess County High School and F.T. Burns Elementary School, plus nearby Smothers Park for recreation.
- Griffith Area: It presents a suburban residential vibe with friendly subdivisions like Griffith Heights and Griffith Farms, featuring sidewalks and green spaces. It appeals to buyers due to nearby Griffith Elementary School and Owensboro Middle School.
- Audubon-Bon Harbor: The area offers a peaceful suburban setting with manicured lawns, tree-lined streets, and public green spaces. Buyers note its access to Audubon Elementary School and Audubon Park’s walking trails and playgrounds.
- Job Market: Owensboro’s economy centers on healthcare, manufacturing, and finance. major employers including Owensboro Health, Swedish Match, Mizkan America, and U.S. Bank Home Mortgage.
- Recreation: Yellow Creek Park offers wooded trails, boating on its lake, and camping facilities. Ben Hawes Recreation Park features an 18-hole disc golf course, archery range, and off-road vehicle trails.
- Higher Crime Rates: Owensboro’s crime rate exceeds the national average, with resident reports of drug issues like meth contributing to safety concerns.
- Limited Nightlife: The small-town setting lacks major concerts, bars, or entertainment venues, requiring trips to Louisville or Nashville for bigger events.
- No Public Transit: Residents must own a car, as no public transportation system exists for daily commuting or errands.
Its suburban-rural mix includes walkable parks, proximity to I-69 for travel, and traits like the Glema Mahr Center for arts events. Homes for sale in Madisonville suit those prioritizing community ties and outdoor access.
- Brentwood: It maintains a serene suburban residential atmosphere with spacious family homes and low-density lots. Buyers select it for proximity to Pride Elementary School and Madisonville City Park’s playgrounds and trails.
- Summerfield: It provides a family-focused suburban setting with modern subdivisions and community sidewalks. It attracts residents due to nearby West Broadway Elementary School and access to Trover Wellness Park.
- Northside Estates: The area offers a quiet residential suburban vibe north of downtown with mature landscaping. Families appreciate its nearness to James Madison Middle School and Dr. Festus Claybon Park playground
- Job Market: Madisonville’s economy relies on healthcare, manufacturing, and energy, anchored by Baptist Health Deaconess Madisonville, manufacturing plants like process technician roles, and coal-related firms.
- Recreation: Mahr Park Arboretum spans 265 acres with trails, Lake Pee Wee fishing, and a nature playground. Glema Mahr Center hosts concerts and theater performances. Standouts include Ruby Laffoon Log Cabin tours and the annual 4th Fest fireworks at Elmer Kelley Stadium.
- Limited Activities: Few options for youth and families beyond parks, leading to boredom indoors during bad weather.
- Corruption Concerns: Residents report issues with local law enforcement, school board, and favoritism toward elites.
- Low Wages: Decent jobs scarce outside entry-level manufacturing and healthcare, with poor pay relative to costs.
Pro Tip If you’re looking for a classic Southern charm, Lexington could be a great option. From Kenwick to West Lexington, you’ll find a wide range of affordable houses in Lexington with strong rental potential.
Carrollton (safety score of 92) and Harrodsburg (safety score of 90) are the cheapest and safest cities in Kentucky. They offer low crime rates, family-friendly neighborhoods, and a lively, welcoming lifestyle.
Top 3 Cheapest Cities to Live in Kentucky for Young Adults
When looking for the least expensive city to live in Kentucky, you want more than just cheap rent. You want good jobs, a fun lifestyle, and a city where you can thrive. These Kentucky cities deliver all three, with affordable housing and growing job markets.
| Rank | City | Why It’s Great for Young Adults |
|---|---|---|
| 1. | Owensboro | An active downtown supports diverse jobs in manufacturing and healthcare. A dedicated Chamber Young Professionals group builds connections through networking happy hours, leadership lunches, and volunteer efforts like the Guys & Ties youth mentoring program. |
| 2. | Bowling Green | Western Kentucky University fuels steady economic growth and career opportunities. For young professionals exploring homes for sale in Bowling Green, the Bowling Green Young Professionals group adds value by connecting residents ages 21 to 40 through networking, leadership, and community-building initiatives. |
| 3. | Hopkinsville | The HYPE group helps retain young professionals through regular networking and community events that build local ties. For those considering homes for sale in Hopkinsville, proximity to Land Between the Lakes adds outdoor recreation options while supporting steady jobs in tourism and local services. |
Top 3 Inexpensive Places to Live in Kentucky for Families
Kentucky is a favorite among families for its warm climate, no state income tax, and affordable housing. These three cities offer low living costs and top-notch schools.
| Rank | City | Why It’s Great for Families |
|---|---|---|
| 1. | Madisonville | Families value the Hopkins County School District for strong academics and a safe, supportive learning environment. For buyers exploring homes for sale in Madisonville, local attractions like Madisonville Miners baseball games and year-round community events add affordable, family-friendly entertainment close to home. |
| 2. | Ashland | Ashland’s B+ rated schools give families confidence in everyday education quality. For families considering homes for sale in Ashland, attractions like Malibu Jack’s fun park with go-karts, laser tag, and arcades provide easy, year-round family entertainment close to home. |
| 3. | Monticello | Monticello offers a family-friendly, rural atmosphere with low crime and easy access to Lake Cumberland’s boating, fishing, and outdoor recreation. For buyers exploring homes for sale in Monticello, this blend of safety, open space, and nearby lake life adds everyday value without the pace or cost of larger cities. |
3 Best Affordable Places to Live in Kentucky for Retirees
Kentucky is a great for retirees. In these cities, you can find affordable homes, accessible healthcare, and safe communities. There are also plenty of outdoor activities like kayaking, hiking, and picnics to enjoy a comfortable, active lifestyle.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Bradstown | The city pairs cultural draws like bourbon tours at seven nearby distilleries and the My Old Kentucky Home Museum with essential services like Flaget Memorial Hospital and senior center meal programs. For buyers considering homes for sale in Bradstown, this mix of heritage experiences and everyday healthcare support adds practical appeal. |
| 2. | Maysville | Riverfront paths and Simon Kenton Bridge views support easy daily walks and scenic downtime, while Kenton Pointe Assisted Living and other senior facilities provide reliable care close to home. For buyers exploring homes for sale in Maysville, this blend of outdoor calm and accessible senior services adds everyday comfort |
| 3. | Somerset | Lake Cumberland supports year-round boating and fishing that shape daily life in the area. For those considering homes for sale in Somerset, senior options such as The Neighborhood at Somerset assisted living and nursing facilities like Somerwoods provide dependable care without leaving the community. |
3 Hidden Costs to Consider in Kentucky
Even in the cheapest Kentucky cities to live in, home prices are only part of the cost. So, factor in tornado and vehicle along with property taxes when looking for the cheapest area to live in Kentucky.
- Tornado Tax: Many homeowners insurance averages $2,438/year with 1-2% wind/hail deductibles ($2K-$4K on $200K home) where flood excluded.
- Vehicle Taxes: Kentucky imposes annual property taxes on vehicles, even for older cars plus $21 registration—recurring fees surprise many.
- Utility Swings: Weather extremes push bills to $359-$469/month, higher than expected despite low base rates.
Quick Tip Kentucky’s Homestead Exemption allows up to $49,100 off the taxable value of primary residence of homeowners aged 65, which can help reduce costs. However, it does not apply to second homes or investment properties.
Savings Breakdown: Cheapest Cities in Kentucky to Live In
Housing costs vary dramatically across Kentucky. Princeton residents save $3,295 monthly compared to Prospect and $766 compared to Louisville. The following table breaks down these savings by median home price, monthly mortgage, property tax, insurance, and total monthly costs.
| City | Median Home Price | Avg. Monthly Mortgage | Insurance/taxes | Estimated Monthly Cost for a Single Person | Monthly Savings vs. Prospect |
|---|---|---|---|---|---|
| Princeton | $132,000 | $640 | $905 | $1,545 | $3,295 |
| Louisville | $265,000 | $1,255 | $972 | $2,311 | $2,529 |
| Prospect | $730,000 | $3,362 | $1,478 | $4,840 | – |
Affordable Living Beyond Kentucky
Not sure if the cheapest places in Kentucky to live will fit your budget? Here are a few surrounding states that offer affordable housing, a strong job market, and business-friendly environment, just like Kentucky.
Robust Job Opportunities
Oklahoma matches Kentucky’s profile as one of the cheapest U.S. states to live with strong job growth in manufacturing, energy, and aerospace. These are the cheapest places to live in Oklahoma:
- Tulsa: Median home price is $260,000, rent is $1,007, with booming tech/manufacturing hubs.
- Oklahoma City: Median home price is $264,240, rent is $1,044, with energy sector jobs (mainly oil and gas) and a growing economy.
- Norman: Median home price is $295,691, rent is $1,270, and University of Oklahoma drives education/tech jobs
Affordable Housing
Arkansas rivals Kentucky as one of America’s cheapest states to live. Housing affordability shines, similar to Kentucky’s low barriers to ownership. Here are the cheapest places to live in Arkansas:
- Little Rock: Homes sell for a median price of $281,000, rent under $1,250, with healthcare/government jobs and riverfront amenities.
- Fayetteville: Homes sell for a median price of $422,500, rent under $1,388, and University of Arkansas boosts education and tech.
- Fort Smith: Homes sell for a median price of $224,700, rent under $834, and is a manufacturing hub with very affordable homes.
Business-Friendly Environment
Tennessee provides a business-friendly environment like Kentucky’s, ranking high for low taxes and regulations. These are 3 cheapest places to live in Tennessee:
- Nashville: Average home price is $459,000, median rent is $2,156, and had a music and healthcare boom feeding its vibrant economy.
- Knoxville: Average home price is $301,000, median rent is $1,748, and has a strong growth in manufacturing/UT jobs.
- Chattanooga: Average home price is $335,000, median rent is $1,457, and is the Southeast hub of tech and auto.
Where Is the Cheapest Place to Live in Kentucky?
Princeton, Monticello, Olive Hill are the most affordable cities to live in Kentucky. These areas offer more than low prices; they also provide steady job markets, plenty of recreation, and a cost of living 6-21% lower than the state norm.
Moving to Kentucky also offers valuable tax advantages, with property taxes averaging at 0.83%. Whether you’re relocating or buying your first home, you can browse listings, compare prices, and make offers online.
Frequently Asked Questions
Where is the cheapest place to live in Kentucky?
The cheapest place to live in Kentucky is Princeton. It offers affordable housing at a median sale price of 132K.
» 10 Cheapest Places to Live in Kentucky: Find out the other cheapest places to live in Kentucky.
Where is the best place to live in Kentucky?
The best place to live in Kentucky is Hopkinsville, followed by Owensboro, Edgewood, Fort Thomas, Louisville, Covington, and Bowling Green.
What is the cost of living in Kentucky?
The average cost to live in Kentucky is 8% lower than the national average. However, transportation 5% higher than the national average.
Where is the best place to retire in Kentucky on a budget?
Bradstown, Maysville, and Somerset are among the best places to retire in Kentucky on a budget. They offer affordable housing, small-town comfort, and easy access to medical care.
Which cities have the cheapest cost of living in Kentucky?
Olive Hill (72) and Williamsburg (80) have the cheapest cost of living in Kentucky. Olive Hill's cost of living is 21% below the average, while Williamsburg's is 13% lower.
