Best economy, affordable living and excellent healthcare have motivated about 50% of people to move to Kentucky. But it’s not that easy for everyone. With a median home price of 210K, Kentucky can be expensive.
Should that stop you from moving to the Bluegrass State? Absolutely NOT!
Cities like Middlesborough and Williamsburg offer several budget-friendly options. While Middlesborough offers a cost of living 32.8% lower than the national average, the median home price in Williamsburg is $101K.
Whether you’re a retiree or a young professional looking for exciting opportunities, Kentucky has affordable housing for everyone. Let’s explore some of the cheapest places to live in Kentucky!
4 Reasons to live in Kentucky 🌆
- Cheaper Houses: The median home sale price in Kentucky is ~$210K. However, you can get houses between $98K and $197K in cities like Maysville, Williamsburg, and Owensboro.
- 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 6% lower than the national average.
- Cheaper Rentals: The rent prices of these cities are lower than the national average. You can save up to $479 per month in rent.
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 | $98,499 | 9,131 | 6.7% | 32% |
| Williamsburg | $31,287 | $101,741 | 5,272 | 5.4% | 27.9% |
| Olive Hill | $49,688 | $118,743 | 1,424 | 8.4% | 15.9% |
| Central City | $56,316 | $121,399 | 5,836 | 6.9% | 16.3% |
| Princeton | $41,506 | $127,317 | 6,206 | 5.0% | 16.6% |
| Maysville | $40,212 | $143,019 | 8,851 | 5.8% | 21.9% |
| Monticello | $37,945 | $150,511 | 5,782 | 5.4% | 28.8% |
| Shively | $45,953 | $183,057 | 15,455 | 5.0% | 19.05% |
| Owensboro | $51,982 | $197,405 | 60,140 | 5.2% | 18.45% |
| Madisonville | $54,234 | $152,929 | 19,355 | 5.3% | 21.02% |
10 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 cheapest locations to live.
1. Middlesborough
| 🟢 Cost of Living Compared to National Average | 32.8%⬇️ |
| 🏡 Median Home Price | $98,499 |
| 💲 Median Rent | $1,055 |
| 🛣️ Known For | The Cumberland Gap Tunnel |
Middlesborough is one of the most affordable places to live in Kentucky. It offers housing which is 67.3% lower than the national average. Also, renting a two-bedroom unit costs $1,055 per month.
Residents in Middlesborough, KY, can experience both natural and cultural attractions. The Bell County Historical Society Museum reflects the town’s rich history. Apart from its history, the city is also known for its employment opportunities. Companies like Vaughn & Melton and HFB Financial Corporation contributes to city’s wealth.
» Homes for Sale in Middlesborough, KY: Find cheap houses for sale in Kentucky.
2. Williamsburg
| 🟢 Cost of Living Compared to National Average | 29.2%⬇️ |
| 🏡 Median Home Price | $101,741 |
| 💲 Median Rent | $850 |
| 🏞️ Known For | Kentucky Splash Water Park |
Williamsburg is one of the cheapest cities to live in Kentucky with an average household income of $33,875. 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 one of the Kentucky cities.
3. Olive Hill
| 🟢 Cost of Living Compared to National Average | 27%⬇️ |
| 🏡 Median Home Price | $118,743 |
| 💲 Median Rent | $875 |
| 🌊 Known For | Grayson Lake |
With rental costs below the national average, Olive Hill is one of the most affordable cities in Kentucky. It offers affordable grocery which is 3.2% lower than the national average. The transportation costs are also 18% lower.
The job market in Olive Hill is relatively small, but there are a number of job opportunities in the retail, healthcare, and education sectors. One of the top employers in the city is Northeast Kentucky Community Action Agency.
» Homes for Sale in Olive Hill, KY: Browse through thousands of cheap homes in Kentucky.
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4. Central City
| 🟢 Cost of Living Compared to National Average | 29.7%⬇️ |
| 🏡 Median Home Price | $121,399 |
| 💲 Median Rent | $575 |
| 🚂 Known For | Muhlenberg County Rail Trail |
Central City offers cheapest rent in Kentucky of $575, which is $774 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. The Muhlenberg South Middle School and Greenville Elementary School are located in Central City. They are part of the Muhlenberg County Public Schools system.
Moreover, the city is known for job offers with employers like Goodwill Industries of Kentucky and Village of Fredonia. So, if you are planning to move, Central City is a right option for you and your family.
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5. Princeton
| 🟢 Cost of Living Compared to National Average | 28%⬇️ |
| 🏡 Median Home Price | $127,317 |
| 💲 Median Rent | $853 |
| 🖼️ Known For | Adsmore Museum |
Princeton’s cost of living is 28% lower than the national average. Moreover, the average transportation expenses are 24.9% lower than the national average. Housing prices in Princeton are 72% lower than in larger cities, making it more accessible for residents.
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.
Along with top education, Princeton has major employers that offers job opportunities to its residents. Bremner Food Group and Caldwell County Hospital, Inc. are the top two employers in the city.
» Homes for Sale in Princeton, KY: Browse through thousands of properties in cheapest area to live.
6. Maysville
| 🟢 Cost of Living Compared to National Average | 25.3%⬇️ |
| 🏡 Median Home Price | $143,019 |
| 💲 Median Rent | $750 |
| 🏫 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 job opportunities like in various sectors along with top employers like Carlson Software and BDO USA.
» 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 | $150,511 |
| 💲 Median Rent | $850 |
| 🚢 Known For | The Houseboat Capital of the World |
The home rent in Monticello ranges from $709 – $2,950. 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. Besides this, Gromont Inc and Monticello Flooring & Lumber are top major companies thta offers ample of jobs in the city.
» Homes for Sale in Monticello, KY: Get yourself a home in one of the affordable cites in Kentucky.
8. Shively
| 🟢 Cost of Living Compared to National Average | 10.2%⬇️ |
| 🏡 Median Home Price | $183,057 |
| 💲 Median Rent | $896 |
| 🏭 Known For | Manufacturing Industries |
Shively offers an affordable cost of living for seniors. The average rent for a one-bedroom apartment is $896, which is $817 lower than the national average. Additionally, healthcare costs are 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 as its proximity to Louisville which is one of the Kentucky’s major cities. Top employers like Baptist Health Louisville and Norton Healthcare contributes to the city’s economy. These factors make Shively an attractive option for seniors seeking an affordable and comfortable place to live.
» Homes for Sale in Shively, KY: Find homes in cheapest place for seniors to live in Kentucky.
9. Owensboro
| 🟢 Cost of Living Compared to National Average | 18.3%⬇️ |
| 🏡 Median Home Price | $197,405 |
| 💲 Median Rent | $1,250 |
| 🎷 Known For | Bluegrass Music Hall of Fame |
With rental costs below the national average, Owensboro stands as one of the most affordable cities to live in Kentucky. The house rent price is between $525 – $2,800.
Owensboro’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in the US. Apart from this, there are many job opportunities in the city with top employers like MPD and Sun Windows.
» Homes for Sale in Owensboro, KY: Search affordable and cheap houses in Kentucky.
10. Madisonville
| 🟢 Cost of Living Compared to National Average | 28.1%⬇️ |
| 🏡 Median Home Price | $152,929 |
| 💲 Median Rent | $749 |
| 🏫 Known For | Atkinson Literary and Industrial College |
Madisonville is one of the best places to live in Kentucky with an average home rent ranging from $710-$1,025. It also offers affordable transportation which is 32.2% lower than the national average.
Additionally, city presents a compelling option for those who are seeking jobs. The city offers ample of job opportunities in healthcare and education management sectors. Some of the top employers are Trover Health Systems and L B H.
» Homes for Sale in Madisonville, KY: Find houses in one of the cheapest area to live in KY.
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The Bottom Line
The average 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 Shively and Owensboro 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.
» Free Home Value Estimator: Get an estimate of property values with Kentucky’s most accurate home value estimator.
Find Homes for Sale in KY Under Your Specific Budget
» 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.
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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
Where 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 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 Kentucky the cheapest place to live in?
No, it is not. The median home value is $210,684. 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.
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