Kentucky Cost of Living
Can you afford to live in the Bluegrass State?
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Considering a move to Kentucky means weighing more than just the beauty of its rolling hills and the appeal of its close-knit communities. One of the most important things to research before relocating is how much it will actually cost to live here day to day.
To determine the cost of living in Kentucky, our team reviewed data from the U.S. Bureau of Economic Analysis to understand average spending. We also used recent sources to gather housing, food, transportation, health care and utility costs for a full picture of everyday expenses.
People in Kentucky spend $47,272 each year on goods and services, on average.
Jump to insightThe median rent in Kentucky is $1,071, versus the national median rent of $1,639.
Jump to insightResidents in Kentucky spend $254.57 weekly on food at home.
Jump to insightAs of August 2025, the average price per gallon of regular gas is $2.89 in Kentucky.
Jump to insightRecent data shows that employees in Kentucky pay $1,606 annually for employee-sponsored health insurance coverage.
Jump to insightThe average cost of living in Kentucky
According to the U.S. Bureau of Economic Analysis (BEA), the average annual per-person spending in Kentucky was $47,272 in 2023. This number represents what Kentuckians typically pay each year for housing, health care, food, energy and other goods and services.
Here’s a breakdown of the largest spending categories in Kentucky:
| Category | Annual per-capita cost in Kentucky |
|---|---|
| Housing and utilities | $7,155 |
| Health care | $9,463 |
| Food and beverages for off-premises consumption | $4,226 |
| Gasoline and other energy goods | $1,634 |
| All other personal consumption expenditures | $24,793 |
| Total cost | $47,272 |
Housing costs in Kentucky
Housing is typically the largest monthly expense for most families. According to 2025 data from Apartments.com, the average rent in Kentucky is $1,071, while the national average rent is $1,639. Rental prices can vary depending on city and property size. The U.S. Census Bureau’s 2023 American Community Survey provides average monthly rents in Kentucky as follows:
- One-bedroom rent: $797
- Two-bedroom rent: $917
- Three-bedroom rent: $1,078
- Four-bedroom rent: $1,099
If you’re looking to buy, the median home price in Kentucky is $281,000, which is much less than the U.S. median home price of $446,638.
Property taxes are another key factor. Kentucky’s property tax rate is 0.73%, which can impact your annual homeownership costs. That ranks Kentucky at No. 31 for highest effective property tax rates in the nation.
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Food costs in Kentucky
How much you budget for groceries in Kentucky will depend on your household size, shopping habits and food preferences. The latest U.S. Census data shows the average weekly grocery bill in Kentucky is $254.57, compared with the U.S. average of $270.21.
For many families, shopping at local supermarkets or farmers markets can help stretch their food budget. People who cook most meals at home may find grocery costs manageable, while dining out — especially in Louisville or Lexington — can add up quickly. In smaller towns and rural areas, restaurant prices are often more affordable, but options may be limited.
Transportation costs in Kentucky
Getting around Kentucky comes with its own set of costs. The average price per gallon of regular gas is $2.89, compared with the U.S. average of $3.13.
Auto insurance premiums in Kentucky average $1,078.07, which you should compare with the national average of $1,258 when considering your monthly expenses.
Health care costs in Kentucky
The typical employee in Kentucky pays $1,606 annually for employer-sponsored health insurance, with the rest covered by their employer — totaling $8,002 per year.
Across the country, workers pay an average of $1,640 out of a total premium of $8,182 each year.
Utility costs in Kentucky
On average, Kentucky residents pay $125.80 for their monthly electric bill, compared with $136.84 nationally.
Natural gas rates in Kentucky are $11.36 per thousand cubic feet, while the U.S. average is $12.92.
FAQ
Does Kentucky have a high cost of living?
No, Kentucky does not have a high cost of living compared with the national average. Housing and utilities are generally less expensive than in most states, and rent costs noticeably less than the U.S. median.
Is Kentucky a good place to live?
Yes, Kentucky is a good place to live if you’re seeking affordable housing and a lower cost of living. Many people are choosing to move to Kentucky for its reasonable prices and its reputation for being renter-friendly. The state’s balance of affordability and availability makes it an attractive destination for new residents.
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Is Kentucky good for renters?
Yes, Kentucky is good for renters. Rent in Kentucky is much less expensive than in most states, and there are plenty of rental options available.
However, while finding a place to rent is generally easy and doesn’t cost as much, tenant protections are not as strong as in some other states.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Apartments.com, “Rent Trends.” Accessed Aug. 20, 2025.
- Redfin, “Redfin Data Center.” Accessed Aug. 20, 2025.
- Tax Foundation, “Where Do People Pay the Most in Property Taxes?” Accessed Aug. 20, 2025.
- United States Census Bureau, “Week 63 Household Pulse Survey: October 18 - October 30.” Accessed Aug. 20, 2025.
- AAA Gas Prices, “State Gas Price Averages.” Accessed Aug. 20, 2025.
- National Association of Insurance Commissioners, “2021/2022 Auto Insurance Database Report.” Accessed Aug. 20, 2025.
- KFF, “Average Annual Single Premium per Enrolled Employee For Employer-Based Health Insurance.” Accessed Aug. 20, 2025.
- U.S. Energy Information Administration, “2023 Average Monthly Bill- Residential.” Accessed Aug. 20, 2025.
