The cost of living in Kentucky
is below the national average. A single adult would need to earn at least $32,157 per year to live comfortably in Kentucky. There’s plenty to love about living in Kentucky. You’ve got good bourbon, great BBQ, and a variety of gorgeous natural scenery spanning lush forests, fields, and mountains. It’s not difficult to imagine why about 4.5 million people call the Bluegrass State home.
Another plus? It’s also pretty affordable when compared with many other U.S. states. Here to break down what essential cost of living expenses can look like in Kentucky is Jerry
, the licensed insurance broker app
that can help you save on car
and home insurance
. Let’s take a look! How high is the cost of living in Kentucky?
For the first quarter of 2022, the Council for Community & Economic Research (C2ER)
gave Kentucky a cost of living index of 93.6. The national average is given a value of 100, meaning Kentucky’s cost of living is about 6.4% less expensive than the national average. Overall, Kentucky ranks at number 18 on the list of cost of living indexes by state, putting it among the cheaper half of U.S. states to live in. Comparable cost of living states include Louisiana
, New Mexico
, South Carolina
, and Wyoming
. That said, cost of living expenses can still vary widely depending on where you live in Kentucky and what area of spending you’re looking at. So, with that in mind, here’s a closer look at what the cost of living can look like in Kentucky across various categories, from food to housing to healthcare and more.
Food: $279 to $1,000 per month
When it comes to the cost of food specifically, Kentucky gets an index score of 93.7, making it slightly cheaper than the national average.
It’s worth noting that the food expenses we’re talking about here are only for groceries. You’ll need to factor in additional costs for regular coffee runs or that decadent dish at your go-to restaurant.
Data from MIT’s Living Wage Calculator
shows that for a single adult with no children, annual food costs could come out to about $3,351. For a family of two adults and three kids, that could be just shy of $12,000! Spread out over the year, that comes out to about $279 to $1,000 per month. For comparison, based on data from June 2022, the average monthly cost for food for a single young adult could range from $291 to $359 on a “moderate budget”, according to the U.S. Department of Agriculture (USDA)
. Healthcare: $216 to $602 per month
When it comes to essential expenses, medical care is one of the cheapest essential expenses in Kentucky on average—but there’s plenty of room for variation based on the size and medical needs of your own household.
According to data from the Bureau of Economic Analysis, per capita spending on healthcare in Kentucky in 2022 came out to about $6,600 per year compared to a national average of $12,530 per year.
Housing: $623 to $1,977 per month
Here’s some welcome news: another one of the most affordable aspects of living in Kentucky is housing. MIT’s Living Wage Calculator estimates that annual housing costs could range from $7,472 for a single adult to $23,719 for two adults and three kids.
But how much you’ll actually pay can vary depending on where in Kentucky you’re living and whether you rent or own your current home.
Zillow’s Home Value Index
for Kentucky placed the average value of a home in Kentucky at about $198,926, as of July 2022. According to 2020 census data, monthly costs for Kentucky homeowners with mortgages came out to about $1,191. According to an August report from rent.com
, the average rent for a one-bedroom apartment in Kentucky is $1,081 per month, compared to a national average of about $1,770. That said, your housing costs in Kentucky can vary considerably based on what city you’re living in.
For example, here’s how monthly rent costs
in Louisville
can look based on the number of bedrooms your apartment has: Average studio rent: $1,154
Average one-bedroom rent: $1,125
Average two-bedroom rent: $1,262
Average three-bedroom rent: $1,549
And here’s how rent costs
can look in Lexington
: Average studio rent: $1,440
Average one-bedroom rent: $1,295
Average two-bedroom rent: $1,455
Average three-bedroom rent: $2,059
Transportation: $459 to $1,359 per month
With a cost of living index of 101.2, transportation costs in Kentucky are just slightly higher than the national average, but how much transportation will cost for you in Kentucky could vary widely depending on what your own household’s travel needs look like.
Here are a few important figures that can have a big impact on your annual transportation costs:
Average yearly cost of Kentucky car insurance: $2,582 to $3,133 (liability
only vs. full coverage
) Monthly pass for TARC
in the Louisville area: $50 Average commute length
in Kentucky: 19 miles Average cost of a gallon of gas, August 2022: $3.50
Other important factors that will influence your annual transportation costs in Kentucky are your vehicle’s fuel economy, maintenance
, and registration costs. How much you need to live comfortably in Kentucky: $32,157 to $78,125 per year
Kentucky’s minimum wage is $7.25 per hour, and as of the 2020 census, the median household income was $52,238.
By comparison, a living wage in Kentucky for a single adult without children, according to Living Wage Calculator data, would be $15.46 per hour, or about $32,157 per year. But expand that to a household with two adults and three kids, and a living wage would look like a combined income of $37.56 per hour, or about $78,125per year.
And these are figures based on basic living expenses. Depending on other expenses you might have and what you enjoy doing, the income you’ll need to enjoy your lifestyle might require a higher income than the range shown here. Here’s a look at how certain “just-because” costs could look in Kentucky:
Average cost of a date: $82 (US average: $116)
Average cost of a night at the movies: $11.59 (US average: $10.61)
Average cost of a Big Mac: $4.03 (US average: $5.15)
Admission to Kentucky Kingdom
: $43 (US average theme park ticket price: $91) Average sales tax: 6% (US average: 6.57%)
Of course, not everything enjoyable in life has to cost money—but you should definitely consider what you’re looking for in a lifestyle and what those costs would be when you’re evaluating a budget to relocate to a new state.
The Kentucky cities with the lowest cost of living
While Kentucky overall has low costs of living, some cities are even cheaper to live in than others. Based on data from Niche
and Best Places
, here are some of Kentucky’s most affordable spots to live: Louisville
(COLI: 88.4): The home of the Kentucky Derby and the world’s bourbon capital happens to be a pretty affordable city to live in by most standards—and it’s a popular choice among young professionals.Lexington
(COLI: 90.5): If you’re looking for a larger city with low living costs, Kentucky’s second-most populous city is another option worth considering, especially if you’re a horse racing or University of Kentucky sports fan.Flatwoods
(COLI: 77.6): You’ll find this riverside town right alongside the Ohio-Kentucky border—the area’s topography is pretty much what it sounds like: a wooded area that stretches across a level expanse of land.Horse Cave
(COLI: 74): This small town of several thousand has historic charm—and right in the heart of downtown, you’ll find Hidden River Cave, which is said to be the largest privately owned cave in the state!Marion
(COLI: 73.2): Looking for a slower pace? Found in southwest Kentucky and not far from the Ohio River, Marion is home to about 3,000 people and the state’s largest Amish community.
How to easily find home and car insurance in Kentucky
There’s another way you can cut down on your living expenses in Kentucky: by making sure you’re not overpaying on your car
or home insurance
. If that sounds time-consuming, it doesn’t have to be! With Jerry
, it only takes about 45 seconds to answer a few easy questions and start comparing customized quotes from over 55+ top insurance providers—making it faster and easier than ever to find the right amount of coverage for you at the right rate. Plus, once you pick a policy, Jerry can help you make the switch to your new policy.
When all is said and done, drivers who use Jerry save over $800 per year on car insurance alone!
“Jerry
was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.
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