10 Cheapest Places to Live in Kentucky in 2025

8 mins read Feb 05, 2025
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Prayas Biswas

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Prayas Biswas

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About Prayas B. is a detail-oriented content editor specializing in American real estate. In his free time, he enjoys hitting the pitch for a game of football or watching motorsports. Find Prayas Here linkedin
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Kentucky attracts Americans from all over. And there’s a good reason why: Affordable healthcare, low tax rate, and quality of life. You can’t go wrong with the Bluegrass State!

Although property prices have risen in recent years, the average home value in the top 10 cheapest cities is still only around $200,000. Middlesborough’s cost of living is 32.8% lower than the national average, and Williamsburg is 29.2% more affordable than the rest of the country.

But that’s not all! Retirees can enjoy Central City’s friendly community and peaceful environment, with homes averaging a nominal $128K. Meanwhile, Princeton offers a booming job market in education, healthcare, and technology, with median home prices at just $131,545.

👉 Kentucky Homes for Sale: Find your dream home in Kentucky’s most affordable cities!

Cheapest Places to Live in Kentucky in 2025

Here’s our ranking of the most affordable places to live in Kentucky. We’ve considered the average household income, median list price, median house rent, and the population of the cities.

CityMedian Home ValueCost of Living Compared to National AverageMedian Household IncomePopulation
1. Middlesborough $110,64532.8% lower ⬇️ $34,3499,012
2. Williamsburg$126,92829.2% lower ⬇️$32,4315,169
3. Olive Hill$131,75627% lower ⬇️$49,6881,546
4. Central City$128,21329.7% lower ⬇️$49,0255,800
5. Princeton$131,54528% lower ⬇️$82,1306,194
6. Maysville$145,43025.3% lower ⬇️$41,9238,687
7. Monticello $150,32329.2% lower ⬇️$37,7335,715
8. Shively $180,54410.2% lower ⬇️$46,52215,455
9. Owensboro$191,32218.3% lower ⬇️$53,29560,140
10. Madisonville$158,01428.1% lower ⬇️$56,90219,355

10 Cheapest Places to Live in Kentucky

Here’s our list of 10 cities that offer affordable living options in the Bluegrass State:

#1 Middlesborough

  • Median home value of Middlesborough is $110,645.
  • Cost of living in Middlesborough is 32.8% cheaper than the national average.
  • 3 Popular Zips in Middlesborough, KY: 41017 | 41042 | 41091

Middlesborough offers housing which is 67.3% lower than the national average. Also, Middlesboro is home to the Cumberland Gap National Historical Park, offering hiking trails and scenic views. Attractions like the Bell County Historical Society Museum reflect the town’s rich history. Besides, key employers like Vaughn & Melton and HFB Financial Corporation offers local employment.

» Middlesborough Homes for Sale: Find homes in the cheapest place to live in KY.

#2 Williamsburg

  • Median house rent is $750 | Rental prices range between $750 and $1,475.
  • Median home value of Williamsburg is $126,928.
  • Cost of living in Williamsburg is 29.2% cheaper than the national average.
  • 3 Popular Zips in Williamsburg, KY: 41017 | 41042 | 41091

Williamsburg transportation expenses cost 22.4% lower than the national average. It is also home to the University of the Cumberlands, offering higher education for young adults. The city hosts annual events like the Kentucky Splash Water Park and Campground, providing recreational activities for all ages. These combined factors make Williamsburg an ideal for young adults and families.

» Williamsburg Homes for Sale: Browse thousands of property listings in one of the Kentucky cities.

#3 Olive Hill

  • Median house rent is $950.
  • Median home value of Olive Hill is $131,756.
  • Cost of living in Olive Hill is 27% cheaper than the national average.
  • 3 Popular Zips in Olive Hill, KY: 41017 | 41042 | 41091

Olive Hill is known for its proximity to Carter Caves State Resort Park, featuring caves, hiking trails, and camping sites. The city hosts the annual Olive Hill Heritage Festival, celebrating local culture and history. With a focus on community and a slower pace of life, Olive Hill is appealing to senior citizens and those seeking a tranquil environment.

» Olive Hill Homes for Sale: Discover thousands of cheap homes in Kentucky.

#4 Central City

  • Median house rent is $500 | Rental prices range between $500 and $575.
  • Median home value of Central City is $128,213.
  • Cost of living in Central City is 29.7% cheaper than the national average.
  • 3 Popular Zips in Central City, KY: 41017 | 41042 | 41091

Central City offers the cheapest rent in Kentucky with grocery costs being 8.3% lower than the national average. It also offers attractions like the Everly Brothers Monument, honoring the famous musical duo. Health expenses are also 2.2% cheaper than the US average, which makes it ideal for retirees and seniors.

» Central City Homes for Sale: Find affordable and cheapest place in Kentucky to live.

🏡 Ready to Buy a Home in Kentucky?
Use a Kentucky Cost of Living Calculator to compare housing, utilities, and transportation costs. Get a detailed cost breakdown across affordable cities for free💲.

#5 Princeton

  • Median home value of Princeton is $131,545.
  • Cost of living in Princeton is 28% cheaper than the national average.
  • 3 Popular Zips in Princeton, KY: 41017 | 41042 | 41091

Princeton’s housing prices are 72% lower than the US median, which makes it more accessible for residents. It is also home to the University of Kentucky Research and Education Center. Princeton features historic sites like the Adsmore House and Gardens, offering a glimpse into 19th-century life. The city also hosts the Black Patch Heritage Festival, celebrating its tobacco farming history.

» Princeton Homes for Sale: Browse through thousands of properties in cheapest area to live.

#6 Maysville

  • Median house rent is $1,100 | Rental prices range between $1,100 and $1,175.
  • Median home value of Maysville is $145,430.
  • Cost of living in Maysville is 25.3% cheaper than the national average.
  • 3 Popular Zips in Maysville, KY: 41017 | 41042 | 41091

You can comfortably live in Maysville with an average household income of $41,923. It also offers affordable transportation which is 25.1% lower than the national average. Maysville is a historic small town in proximity to the Ohio River. Moreover, it enhances the quality of life by offering job opportunities in various sectors with key employers like Carlson Software and BDO USA.

» Maysville Homes for Sale: Find a home in one of the cheapest cities in Kentucky.

#7 Monticello

  • Median house rent is $800 | Rental prices range between $447 and $800.
  • Median home value of Monticello is $150,323.
  • Cost of living in Monticello is 29.2% cheaper than the national average.
  • 3 Popular Zips in Monticello, KY: 41017 | 41042 | 41091

The average housing price is 75.6% lower than the national average. You can enjoy a peaceful lifestyle at the banks of Lake Cumberland. It offers recreational activities such as boating, fishing, and hiking. The city also hosts events like the Wayne County Fair for family outings. Besides this, Gromont Inc. and Monticello Flooring & Lumber are top major companies that offer ample jobs in the city.

» Monticello Homes for Sale: Get yourself a home in one of the most affordable cities in Kentucky.

#8 Shively

  • Median home value of Shively is $180,544.
  • Cost of living in Shively is 10.2% cheaper than the national average.
  • 3 Popular Zips in Shively, KY: 41017 | 41042 | 41091

Shively offers healthcare expenses 5.2% lower than the national average. Grocery prices are also 6.1% low comparable to the national average. The city boasts a range of job opportunities in its proximity to Louisville which is one of Kentucky’s major cities. Top employers like Baptist Health Louisville and Norton Healthcare contribute to the city’s economy and ideal for professionals.

» Shively Homes for Sale: Find homes in one of the cheapest places to live in Kentucky.

#9 Owensboro

  • Median house rent is $1,295 | Rental prices range between $575 and $3,200.
  • Median home value of Owensboro is $191,322.
  • Cost of living in Owensboro is 18.3% cheaper than the national average.
  • 3 Popular Zips in Owensboro, KY: 41017 | 41042 | 41091

Owensboro is known for its vibrant arts scene, including the Owensboro Museum of Fine Art and the International Bluegrass Music Museum. It is also known for its low transportation costs 25.9% cheaper than the national average. The city hosts the annual International Bar-B-Q Festival, attracting tourists as well. Owensboro’s diverse economy and cultural offerings make it ideal for families and professionals.

» Owensboro Homes for Sale: Search affordable and cheap houses in Kentucky.

#10 Madisonville

  • Median house rent is $1,200 | Rental prices range between $1,000 and $52,999.
  • Median home value of Madisonville is $158,014.
  • Cost of living in Madisonville is 28.1% cheaper than the national average.
  • 3 Popular Zips in Madisonville, KY: 41017 | 41042 | 41091

Madisonville offers housing prices 64.1% lower than the national average. The city has a strong coal mining heritage and hosts events like the Madisonville Miners baseball games, which makes it ideal for sports enthusiasts. The city offers ample job opportunities in the healthcare and education management sectors. Some of the top employers are Trover Health Systems and L B H.

» Madisonville Homes for Sale: Find houses in one of the cheapest areas to live in KY.

So, Where Is the Cheapest Place to Live in Kentucky?

You will find cheap houses for sale in Kentucky under 100K in cities like Middlesboro, Olive Hill, and Monticello. They offer stable job opportunities, and the cost of living is more affordable than other Kentucky cities.

are slightly expensive but provide better job opportunities. You must research the home prices and living costs. Also, getting a mortgage pre-approval helps you stand out in the competition before buying a house in Kentucky.

📢 Browse Cheap Houses for Sale in Kentucky

Here are a few options of cheap houses for sale in KY.

Homes For Sale in Kentucky under $100KHomes For Sale in Kentucky under $150KHomes For Sale in Kentucky under $200K
Homes For Sale in Kentucky under $250KHomes For Sale in Kentucky under $300KHomes For Sale in Kentucky under $350K

» Best Rental Websites in America: Can’t find your dream home within your budget? Explore thousands of listings on the nation’s top rental websites.

Find an Affordable House With Houzeo

With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of tiny homes for sale in Kentucky on Houzeo.

» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.

Research Methodology for Cheapest Places to Live in Kentucky

To rank the top cities in Kentucky, we analyzed all the regions, evaluating them based on specific criteria. Below is a breakdown of the factors used and the sources of information that informed our rankings.

  • Population: World Population Review  [1]
  • Median Home Price: Zillow [2]
  • Median Rent: Zillow [3]
  • Cost of Living: Rent Cafe [4]

Frequently Asked Questions

Where is the cheapest place to live in Kentucky?

The cheapest place to live in Kentucky is Middlesborough. It offers one of the most affordable utilities in the state, which is 7.9% lower than the national average.

» 10 Cheapest Places to Live in Kentucky: Find out the other cheapest places to live in Kentucky.

Is it expensive to live in Kentucky?

No, it is not. The median home value is $209,367. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.

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.

Which Kentucky city has the lowest cost of living?

Middlesborough has the lowest cost of living, which is 32.8% and 18.3% lower than the national and state average, respectively.