The 9 Most Affordable Cities in Kentucky 2022

Kentucky is primarily known for its famous horse race, the Kentucky Derby, and the iconic Kentucky Fried Chicken brand, but it has a lot more to offer than that. Kentucky has diverse landscapes ranging from rolling hills to flourishing forests and tranquil rivers. It is known as the Bluegrass State for the blue-tinted herbs found in abundance there, and the nickname also lent itself to the country/folk music genre that has strong roots there.

Most Affordable Cities in Kentucky

HomesNewHere you have found the 9 most affordable cities in Kentucky to help you find the perfect place to call home.

1. Middlesboro

Ratio of house price to income: 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 in the city. Located in the Middlesboro Basin, which is a huge meteorite crater, Middlesboro is the largest city in southeastern Kentucky and offers some of the most breathtaking views in the state.

2. Ashland

Ratio of house price to income: 2.51%

Average property tax: 905

Median household income: $40,917

Ashland is located along the Ohio River at the borders of Ohio and West Virginia and has a number of exciting activities that locals can participate in. For example, the city center is full of many unique art spots, as well as some local restaurants and shops. In addition, there is the beautiful Central Park, where people can enjoy nature and even live entertainment.

3. Glasgow

Ratio of house price to income: 3.59%

Average property tax: 912

Median household income: $35,138

Located in the south-central region of the state, close to 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, go shopping and dining at Paradise Point, and even rent a boat to sail on Barren River Lake.

4. Somerset

Ratio of house price to income: 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 some of the favorite spots among locals.

5. Shively

Ratio of house price to income: 2.74%

Average property tax: 995

Median household income: $39,048

Shively is a quiet suburb within the city limits of Louisville. It has one of the best distilleries in the state and is close to the famous Churchill Downs Racecourse. Shively is steeped in history, and there are some exceptional places to immerse yourself in nature in Shively Park and Leeds Park.

6. Henderson

Ratio of house price to income: 3.03%

Average property tax: 1050

Median household income: $39,887

Henderson is part of the Evansville, Indiana metropolitan area, and has a variety 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 ride on the Atkinson Park River Walk or a visit to the Ellis Park horse racing track. In addition, residents can enjoy local art galleries, museums and restaurants.

7. Madisonville

Ratio of house price to income: 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 attractive views in the entire state. Those looking to live in a place with scenic trails, tranquil lakes, dense forests, and stunning hills will fall in love with Madisonville. This Kentucky city is truly a paradise for nature lovers.

8. Owensboro

Ratio of house price to income: 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. Because of this, there are many live performances throughout the year here. Owensboro also offers a wide range of recreational activities that locals can participate in.

9. Covington

Ratio of house price to income: 2.57%

Average property tax: 1260

Median household income: $43,437

The lively town of Covington is located in northern Kentucky, across the Ohio River from Cincinnati. Residents can enjoy visiting the exclusive shops, enjoying the local restaurants and bars and admiring the beautiful street art. In addition, there are museums to learn about the history of the city, parks for 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 ratio of home price to income, meaning you can get more home for your money.


Erlanger is known for being an extremely safe city in Kentucky and is close to the Cincinnati/Northern Kentucky International Airport. Residents can take advantage of the area’s parks, restaurants, and many fun activities.


Independence is located in northern Kentucky, about 15 minutes south of Cincinnati. This means living near one of the largest centers in the country.


Bardstown has been voted one of the best small towns in America and is a quaint town full of stunning architecture and eccentric shopping.