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State cost profile · 2024 BEA RPP

Cost of Living in Kentucky

Statewide Regional Price Parities for Kentucky from the Bureau of Economic Analysis — overall, goods, services, and rents vs the U.S. average of 100, across 6 metro areas.

90.2
Statewide RPP
#40
of 51 states by cost
64.3
Rents RPP
6
Metro areas

The verdict

Kentucky costs less than 78% of U.S. states — a statewide index of 90.2, 9.8% below the national average.

90.2
statewide cost index (US average = 100)
#40
of 51 states by overall cost
bottom 22%
nationally, among all states
64.3
rents RPP — the biggest budget swing

A $100,000 national salary carries the purchasing power of about $110,915 when earned in Kentucky.

Reading the Kentucky Cost of Living Picture

The Bureau of Economic Analysis places Kentucky's statewide Regional Price Parity at 90.2 for the 2024 data year, 9.8% less expensive the U.S. baseline of 100. Inside the headline figure, the state's categories sit near average, while rents offer the biggest relief at 64.3. That internal spread — rather than the single state number — is what determines whether a household actually feels priced in or priced out.

Kentucky captures 6 metro areas in the BEA dataset, and the range across them is meaningful. Louisville/Jefferson County, KY-IN leads on cost at 93.1, while Paducah, KY-IL sits at the opposite end at 86.1 — a gap of 7.0 index points inside a single state. For goods the state indexes at 96.0, for services 75.3, and for rents 64.3 — the rent figure tends to be the most volatile input and deserves its own line-item review before any relocation decision.

Over time, Kentucky's statewide index has held steady within 0.3 points, suggesting a stable competitive position against other states. Practically, this means a $100,000 national salary delivers the purchasing power of about $110,915 of national buying power when earned inside Kentucky, and a household relocating here would need roughly $90,159 to reproduce a $100K lifestyle. Pair these numbers with metro-specific wage data and rent tables before treating the statewide figure as your planning assumption.

90.2
Overall
96.0
Goods
75.3
Services
64.3
Rents

Kentucky vs every U.S. state

Where this state sits in the national cost distribution

90 Top 78% higher than 22% of 51 US states

84–87: 2 US states (4%). Below this entry. 87–90: 7 US states (14%). Below this entry. 90–93: 8 US states (16%). This entry sits in this band. 93–96: 6 US states (12%). Above this entry. 96–99: 8 US states (16%). Above this entry. 99–102: 5 US states (10%). Above this entry. 102–105: 8 US states (16%). Above this entry. 105–108: 3 US states (6%). Above this entry. 108–111: 4 US states (8%). Above this entry. 111–114: 0 US states (0%). Above this entry. 114–117: 0 US states (0%). Above this entry. This state 84 117 every US state (incl. DC), bucketed by value

Each bar is a band; taller bars hold more US states. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.

Source U.S. Bureau of Economic Analysis — Regional Price Parities · 2024

Most Expensive in Kentucky → Cheapest in Kentucky →

Metro areas in Kentucky, ranked by cost

# Metro area OverallGoodsServicesRents
1 Louisville/Jefferson County 93.1 96.2 75.0 78.6
2 Lexington-Fayette 92.9 96.2 74.6 77.1
3 Elizabethtown 90.6 96.2 74.6 66.7
4 Bowling Green 90.2 96.2 75.2 63.4
5 Owensboro 88.6 96.2 75.2 55.7
6 Paducah 86.1 96.0 76.9 48.8

The Rents RPP index measures housing costs relative to the national average (100). For the federal 40th-percentile Fair Market Rent by bedroom size and county, see the HUD Fair Market Rents dataset.

RPP History

Year Overall
2008 89.8
2009 88.5
2010 90.4
2011 90.5
2012 90.7
2013 90.9
2014 91.1
2015 90.7
2016 90.7
2017 90.0
2018 89.1
2019 89.6
2020 89.1
2021 89.2
2022 89.4
2023 89.9
2024 90.2

Cost of Living Guides

Cheapest Metros to Live in 2026
Official BEA data on the most affordable areas
Most Expensive Cities: 2026 Rankings
What drives high costs and how to cope
Cost of Living vs Wages
Where your dollar goes furthest
Understanding Regional Price Parities
How BEA constructs RPP data

View all guides →

Frequently Asked Questions

What is the cost of living in Kentucky? ▼
Kentucky has a Regional Price Parity (RPP) index of 90.2, meaning it is 9.8% less expensive than the national average. Goods are indexed at 96.0, services at 75.3, and rents at 64.3.
What salary in Kentucky equals $100K nationally? ▼
To maintain the same purchasing power as a $100,000 salary at the national average, you would need approximately $90,159 in Kentucky. Conversely, $100K earned in Kentucky has the purchasing power of $110,915 at the national average.
Is housing expensive in Kentucky? ▼
Rents in Kentucky are indexed at 64.3, which is 35.7% below the national average. The state is relatively affordable for renters.
Which is the most expensive metro in Kentucky? ▼
The most expensive metro area in Kentucky is Louisville/Jefferson County, KY-IN with an RPP of 93.1. The most affordable is Paducah, KY-IL at 86.1. There are 6 metro areas in Kentucky with BEA price data.
Is Kentucky getting more expensive? ▼
From 2008 to 2024, Kentucky's overall cost index changed by +0.3 points (from 89.8 to 90.2). The cost of living has remained relatively stable.

Source: Bureau of Economic Analysis, Regional Price Parities Bureau of Economic Analysis, Regional Price Parities Index where national average = 100

Read our methodology — how this data is sourced, computed, and verified.