The median home price in Kentucky is $194,848 which has increased by 4.3% since last year. The Kentucky housing market has witnessed a 6.7% year-over-year decline in the number of homes listed. With only a 3-month’s supply left, the tight inventory is expected to drive an increase in the median sale price.
As per our research, home prices are relatively higher in northern cities like Louisville, KY. On the other hand, as you move towards the southern areas of the Bluegrass State like Middlesboro, you can find cheaper housing options.
4 Reasons to live in Kentucky 🌆
- Cheaper Houses: The median home sale price in Kentucky is ~$196K. However, you can get houses between $90K and $140K in cities like Maysville, Williamsburg, and Monticello.
- Low Tax Rate: Kentucky maintains the current 4.5% tax rate for all residents. The state also allows itemized deductions and certain income-reducing deductions.
- Affordable Healthcare: Healthcare in cities that are mentioned in this blog is up to 12% lower than the national average.
- Cheaper Rentals: The rent prices of Kentucky are 35% lower than the national average of $2,000. The median rent is ~$1,290 across the state.
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Cheapest Places to Live in Kentucky in 2024
This list provides insights into the average household income, median listing price, population, unemployment rate, and poverty rate of these cities.
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Middlesboro | $35,798 | $90,092 | 9,131 | 6.7% | 32% |
| Williamsburg | $31,287 | $98,103 | 5,272 | 5.4% | 27.9% |
| Olive Hill | $49,688 | $109,409 | 1,424 | 8.4% | 15.9% |
| Central City | $56,316 | $112,137 | 5,836 | 6.9% | 16.3% |
| Princeton | $41,506 | $120,045 | 6,206 | 5.0% | 16.6% |
| Maysville | $40,212 | $128,868 | 8,851 | 5.8% | 21.9% |
| Monticello | $37,945 | $144,610 | 5,782 | 5.4% | 28.8% |
7 Cheapest Places to Live in KY
The annual population growth of 3.8% since 2010 is reflective of people’s intention to move to Kentucky. If you’re considering shifting to the Bluegrass state, here are some cities that offer affordable living options:
1. Middlesboro
| 🟢 Cost of Living Compared to National Average | 32.8%⬇️ |
| 🏡 Median Home Price | $90,092 |
| 💲 Median Rent | $850 |
| 🛣️ Known For | The Cumberland Gap Tunnel |
Middlesboro is an affordable place to live in Kentucky. It offers housing which is 22.8% lower than the national average.
Residents in Middlesboro, KY, can experience both natural and cultural attractions. The Bell County Historical Society Museum reflects the town’s rich history. They can explore the scenic Cumberland Gap National Historical Park. They can also engage in diverse recreational activities such as hiking and biking.
» Homes for Sale in Middlesboro, KY: Find your dream home in this city.
2. Williamsburg
| 🟢 Cost of Living Compared to National Average | 29.2%⬇️ |
| 🏡 Median Home Price | $98,103 |
| 💲 Median Rent | $850 |
| 🏞️ Known For | Kentucky Splash Water Park |
Williamsburg is one of the most budget-friendly rental destinations in Kentucky with an average household income of $41,171. Compared to larger cities, this city offers relatively affordable transportation which is 22.4% lower than the national average.
Williamsburg offers a variety of outdoor recreational options for its residents. Additionally, there are numerous local bars, shops, and restaurants to discover, catering to diverse preferences. It also has excellent educational institutes like the University of the Cumberlands in the area.
» Homes for Sale in Williamsburg, KY: Browse thousands of property listings in Williamsburg.
3. Olive Hill
| 🟢 Cost of Living Compared to National Average | 27%⬇️ |
| 🏡 Median Home Price | $109,409 |
| 💲 Median Rent | $500 |
| 🌊 Known For | Grayson Lake |
With rental costs below the national average, Olive Hills is one of the most affordable cities in Kentucky. It offers affordable grocery which is 18% lower than the national average.
Olive Hill, KY, offers a serene escape with attractions like Carter Caves State Resort Park. Residents can enjoy cave tours and outdoor activities such as hiking and zip-lining.
The Kentucky Folk Art Center highlights the city’s cultural richness, showcasing local artistry and preserving the region’s heritage for residents to explore.
» Homes for Sale in Olive Hill, KY: View all the properties for sale in this city.
4. Central City
| 🟢 Cost of Living Compared to National Average | 29.7%⬇️ |
| 🏡 Median Home Price | $112,137 |
| 💲 Median Rent | $475 |
| 🚂 Known For | Muhlenberg County Rail Trail |
Central City offers budget-friendly living with a median rent of $475, which is $800 lower than the national median. With grocery costs being 8.3% lower than the national average, the city stands out as one of the most inexpensive places to live in Kentucky.
Residents of Central City, KY, enjoy a balanced lifestyle. The city provides them with outdoor recreational opportunities at parks and lakes. Some famous parks in the area are Peabody City Park and Lake Malone State Park.
The Muhlenberg South Middle School and Greenville Elementary School are located in Central City. They are part of the Muhlenberg County Public Schools system.
» Homes for Sale in Central City, KY: Browse through thousands of affordable properties.
5. Princeton
| 🟢 Cost of Living Compared to National Average | 28%⬇️ |
| 🏡 Median Home Price | $120,045 |
| 💲 Median Rent | $700 |
| 🖼️ Known For | Adsmore Museum |
Princeton’s cost of living is 28% lower than the national average. Moreover, the average transportation expenses are 25% lower than the national average.
Residents can access recreational activities like boating and fishing at Lake Barkley. The Land Between the Lakes National Recreation Area is also one of the famous areas to explore.
Residents of this city can experience diverse academic and cultural opportunities at the University of Kentucky Research and Education Center. It is a renowned educational institution located in Princeton.
» Homes for Sale in Princeton, KY: Browse through thousands of properties in this flagship city.
6. Maysville
| 🟢 Cost of Living Compared to National Average | 25.3%⬇️ |
| 🏡 Median Home Price | $128,868 |
| 💲 Median Rent | $601 |
| 🏫 Known For | Maysville murals |
With an average household income of $41,171, you can comfortably live in this city. It also offers affordable transportation which is 25.1% lower than the national average.
Maysville has a historic small-town atmosphere. Those seeking a peaceful residence are attracted to the city’s proximity to the Ohio River. Moreover, it enhances the quality of life by offering recreational opportunities like camping, wildlife observation, and fishing.
» Homes for Sale in Maysville, KY: Find a home in one of the cheapest places to live in Kentucky.
7. Monticello
| 🟢 Cost of Living Compared to National Average | 29.2%⬇️ |
| 🏡 Median Home Price | $139,310 |
| 💲 Median Rent | $574 |
| 🚢 Known For | The Houseboat Capital of the World |
The home rent in Monticello ranges from $447 – $709. The average housing price is 75.6% lower than the national average. This makes it one of the most budget-friendly options across the country.
Residents in Monticello can enjoy a peaceful lifestyle at the banks of Lake Cumberland. It offers recreational activities such as boating, fishing, and hiking. Residents can enjoy a close-knit community and connect with nature.
» Homes for Sale in Monticello, KY: Get yourself a home in this vibrant town.
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The Bottom Line
The cost of living in Kentucky is 8% lower than the national average. However, the Bluegrass State is still home to some of the nation’s most expensive cities like Douglass Hills and Union. However, if you want to shift to Kentucky, you can find affordable housing in cities like Middlesboro, Olive Hill, and Monticello.
Cities like Williamsburg and Monticello have a slightly expensive cost of living but provide better job opportunities. It would help if you researched the city’s home prices and living costs before relocating.
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Research Methodology
We’ve created this list by considering factors such as cost of living, median home price, and rental price range. We have also accounted for these cities’ population, median household income, poverty rate, and unemployment rate.
To compile this list of the cheapest areas to live in Kentucky, we have drawn data from the Economic Research Institute, World Population Review, Best Places, and Zillow.
FAQs
What is the cheapest place to live in Kentucky?
The cheapest place to live in Kentucky is Middlesboro. It offers one of the most affordable utilities in the state, which is 32.8% lower than the national average.
» 7 Cheapest Places to Live in Kentucky: Find out the other cheapest places to live in Kentucky.
Is Kentucky the cheapest place to live in?
No, it is not. The median home value is $194,848. 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.
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