9 Most Affordable Cities in Kentucky

Kentucky is mainly known for its famous horse race, the Kentucky Derby, and the iconic Kentucky Fried Chicken brand, but it has much more to offer than that. Kentucky has diverse landscapes ranging from rolling hills to flourishing woods and tranquil rivers. It’s referred to as the Bluegrass State for the blue-tinged grasses found in abundance there, and the nickname also lent itself to the country/folk musical genre that has strong roots there.

NewHomeSource has found the top 9 most affordable cities in Kentucky to help you find the perfect place to call home.

1. Middlesboro

Home Price to Income Ratio: 3.59%

Average Property Tax

Median Household Income: $25,488

Middlesboro is located near Cumberland Gap National Historical Park, where you can find one of the best views of the city. Situated in the Middlesboro Basin, which is an enormous meteorite crater, Middlesboro is the largest city in southeastern Kentucky and offers some of the most stunning vistas in the state.

2. Ashland

Home Price to Income Ratio: 2.51%

Average Property Tax: 905

Median Household Income: $40,917

Ashland is located along the Ohio River on the borders of Ohio and West Virginia and has a number of exciting activities locals can engage in. For example, the downtown area is full of many unique art spots as well as some locally owned restaurants and shops. Additionally, there is the beautiful Central Park where folks can enjoy nature and even some live entertainment.     

3. Glasgow

Home Price to Income Ratio: 3.59%

Average Property Tax: 912

Median Household Income: $35,138

Located in the south-central region of the state near Mammoth Cave National Park, Glasgow is a small town that offers several unique things to do. Locals can enjoy a live concert at the Plaza Theatre, shop and eat at Paradise Point and even rent a boat to cruise on Barren River Lake. 

4. Somerset

Home Price to Income Ratio: 4.01%

Average Property Tax: 784

Median Household Income: $29,611

Those who love the outdoors and are looking for an affordable city to live in will fall in love with Somerset. Located near Lake Cumberland and the Cumberland River, Somerset offers a plethora of activities including fishing, swimming and hiking. Buck Creek, Pulaski County Park and Burnside Island are a few of the favorite spots among locals.  

5. Shively

Home Price to Income Ratio: 2.74%

Average Property Tax: 995

Median Household Income: $39,048

Shively is a quiet suburb within Louisville city limits. It has one of the best distilleries in the state and is near the famous Churchill Downs racetrack. Shively is full of history, and there are some exceptional spots to immerse yourself in nature at Shively Park and Leeds Park.

6. Henderson

Home Price to Income Ratio: 3.03%

Average Property Tax: 1050

Median Household Income: $39,887

Henderson is part of the Evansville, Indiana, metropolitan area and has an array of activities that locals can enjoy. There are opportunities for canoeing, camping, fishing and hiking through the Sloughs Wildlife Management Area, as well as spectacular spots on the Ohio River including a walk along the Atkinson Park River Walk or a visit to the Ellis Park horse racetrack. Additionally, residents can enjoy local art galleries, museums and restaurants.

7. Madisonville

Home Price to Income Ratio: 2.8%

Average Property Tax: 1038

Median Household Income: $44,720  

Madisonville offers incredible diversity when it comes to outdoor activities. It also has some of the most appealing views in the entire state. Those who are looking to live in a place with picturesque trails, peaceful lakes, dense forests and stunning hills will fall in love with Madisonville. This Kentucky city is truly a nature lover’s paradise.

8. Owensboro

Home Price to Income Ratio: 2.61%

Average Property Tax: 1066

Median Household Income: $43,369

The fourth largest city in the state, Owensboro is considered the Bluegrass Music Capital of the World and has a strong musical history. Due to this, there are plenty of live performances year-round here. Owensboro also offers a wide range of recreational activities that locals can participate in.       

9. Covington

Home Price to Income Ratio: 2.57%

Average Property Tax: 1260

Median Household Income: $43,437

The happening city of Covington is located in northern Kentucky just across the Ohio River from Cincinnati. Residents can enjoy visiting the unique shops, enjoying local restaurants and bars, and admiring beautiful street art. Furthermore, there are museums to learn about the city’s history, parks to have a picnic and theaters to enjoy a live performance.   

While the list above is sorted by the lowest overall cost-of-living index, the following cities have the lowest home price to income ratio, meaning you can get more home for your money.

1. Erlanger
   • Erlanger is known for being an extremely safe city in Kentucky and is close to the Cincinnati/Northern Kentucky International Airport. Locals can take advantage of the area’s parks, restaurants and many fun activities.
2. Independence
   • Independence is located in northern Kentucky, about 15 minutes south of Cincinnati. This means living close to one of the biggest hubs in the country.
3. Bardstown
   • Bardstown has been voted one of America’s best small towns and is a picturesque city s filled with breathtaking architecture and eccentric shops.