Best Affordable Places to Live in Kentucky in 2024

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Princeton could be a great choice if you’re interested in small-town living at an affordable price. Located not far from the Land Between the Lakes National Recreation area, it offers ample opportunity for backpacking, camping, boating, and more, plus lots of local flavor. Newsom’s Old Mill Store on Main Street sells Col. Bill Newsom’s Aged Kentucky Country Ham and other regional specialties.

Henderson is a suburb of Evansville, Indiana (population: 116,000), and it has all the amenities you’d expect from proximity to a larger city, along with plenty of job opportunities. Those with kids may especially appreciate its well-regarded schools.

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Overall, the cost of living is well below the national average in this western Kentucky city, which adds greatly to Madisonville’s ranking as one of the best affordable cities in Kentucky. There are ample opportunities for outdoor recreation here, as well as numerous museums and agritourism spots. Families may especially like the fact that the county’s schools are rated above average.

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This eastern Appalachian town sits on the bank of the Ohio River and boasts a pleasant downtown and riverfront area. It is home to the Highlands Museum and Discovery Center and the Paramount Arts Center.

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Another Ohio River town, Owensboro is Kentucky’s fourth largest city and boasts a year-round ice arena, unusual for Kentucky. Families flock to the expansive new Smothers Park Playground on the river but the city also is home to a museum of fine art and hosts an annual barbecue festival. The overall cost of living is below the national average, making it another affordable pick if you’re looking for a mid-sized place to call home in Kentucky.

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Some of the things that make Bowling Green a good fit for families include the overall low cost of living and wide range of suburban amenities available. Parents will likely also value its top-rated schools. There are plenty of things to do with kids in the city but if you’re interested in taking a family trip, Nashville and Louisville are both within driving distance.

Although it’s located in Kentucky, Union is technically a suburb of Cincinnati, Ohio and it’s a relatively short drive into the city. Families will appreciate that public schools in the area are highly rated. And there are plenty of local events held throughout the year that are designed to appeal to families with kids, including a city Easter Egg hunt and a Celebrate America parade.

Mount Washington is a suburb of Louisville and it plays host to a number of young families along with young professionals and job-seekers. Families there appreciate its above-average schools, and for entertainment the big city is only half an hour away.

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Like Union, Bellevue is a suburb of Cincinnati, though it’s much smaller in size by population. Some of the things that might attract families to Bellevue include good job opportunities, and well-regarded schools. Despite being a smaller suburb, there are still plenty of things to do and see with kids in the area, including visiting the Newport Aquarium.

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On weekends, families here can head out to local parks, tour a local museum, or make the drive into Louisville or Lexington (both are less than an hour away) for concerts, sports events, or other local fun.

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Fort Thomas, outside of Cincinnati, has earned a reputation for being a good place to raise a family but the area also attracts lots of young job-seekers who are looking for work. The town boasts its fair share of restaurants, clubs, and bars, as well as walking and hiking trails for nature lovers.

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Louisville is the largest city in Kentucky and with so many companies located in the area, it’s a natural draw for young adults who are looking for a place to start their career or make a job change. Major employers here are Norton Healthcare, United Parcel Service, and Humana, Inc. From ghost tours to Churchill Downs race track to the Louisville Slugger Museum, there’s also no shortage of things to do here.

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Lexington is the second-largest city in Kentucky. Its population is diverse and a substantial number of young people live in the area, which is perfect for newcomers who are looking to make friends. Some of the largest employers include Lockheed Martin and Toyota, though there are plenty of smaller companies to attract job hunters. Nightlife abounds, with bars, restaurants, sporting events, and bourbon distilleries abundantly available, and a vibrant arts scene as well.

Lyndon is a suburb of Louisville and it attracts both young adults who are preparing to start their careers and older adults who are ready to retire. Lyndon rates well for diversity and offers lots of local indoor and outdoor attractions.

Oak Grove is a smaller town with a younger population and a local government that strongly encourages business development. Nearby Army installation Fort Campbell offers opportunities for young adults who are specifically interested in gaining employment with the federal government. If you’re looking for things to do, you might visit a local museum or distillery or pay a visit to the local casino if you’re feeling lucky.

Shively is a suburb of Louisville that offers convenience to the city, with a suburban feel. Nearly 20% of the population is 65 or older. There are numerous assisted living facilities available for seniors who are moving out of their homes, either out of choice or need, and Louisville offers easy access to medical care.

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Mayfield is a good place to retire for older adults who are looking for a smaller town with a lower cost of living. Just under 20% of the population is 65 or older, though there are a good many young families living in the area as well. Mayfield offers convenient access to parks for retirees who enjoy spending time outdoors and the Mayfield-Graves County Senior Center routinely sponsors social events to give older residents a chance to connect.

Glasgow has an older population and reasonably priced housing, which may draw in other retirees who are looking for an affordable place to live. The area has a quiet, tranquil charm and the residents have a reputation for being welcoming and friendly. The cost of living is below the national average and the local senior center ensures that the retirees have opportunities to stay active. For a pleasant day trip, Bowling Green is just over a 30-minute drive away.

Williamsburg is one of the smallest towns profiled so far, but it’s worth mentioning for retirees thanks to its exceptionally low cost of living. Social Security income and other retirement benefits may go much further here than they would in other parts of Kentucky. The senior population is a bit smaller here and there are fewer amenities overall, but Williamsburg’s location makes it a short and easy drive to neighboring towns. And for retirees who love the outdoors, Daniel Boone National Forest is less than 20 minutes away.

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Berea is a smallish town located about 45 minutes south of Lexington. It’s one of the fastest growing cities in the state and is a mecca for retirees, students, and folk artists. Berea is situated in the bluegrass region and there are several annual festivals and fairs that attract visitors to the area. In terms of cost, the town is an affordable option for retirees and the Active Senior Network encourages older residents to get social on a regular basis.

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Bardstown is one of the most beautiful small towns in America and its downtown area is listed on the National Register of Historic Places. It also has the distinction of being one of Kentucky’s bourbon capitals. If you’re looking for things to do on the water, the Beech Fork River is ideal for paddleboarding, kayaking, or canoeing. Boating and fishing are also an option at Sympson Lake.

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Corbin, the birthplace of Kentucky Fried Chicken, is perfect for adventure-seekers who are interested in exploring the outdoors. The town is near the Cumberland Falls State Resort Park and the Sheltowee Trace Adventure Resort, which are both well-known spots for white water rafting. The low cost of living and budget-friendly housing options certainly don’t hurt.

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Pikeville and Pike County could be a natural fit for outdoor enthusiasts who are also interested in local history. You can spend time kayaking down the Levisa Fork River with the Hatfield and McCoy River Trails, cruise in a canoe, or try your hand at fishing instead. Along with some picturesque waterfront views, Pikeville boasts a low cost of living and a friendly, small-town vibe.

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Frankfort is a larger city but it’s still small enough to feel cozy and comfortable, while also offering a low cost of living. Some of the best things to do outdoors here include golfing, canoeing, kayaking, paddling, and mountain biking. If cycling isn’t your thing and you’re not inclined to spend time on the water, you can also get out and test one of the many hiking trails in the area.

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Paducah sits where the Tennessee and Ohio rivers converge, halfway between St. Louis, Missouri and Nashville, Tennessee. It has a larger population than some of the other cities that rate as the best places to live in Kentucky but that doesn’t keep it from being an affordable place to live. If you’re interested in exploring nature, you can check out a variety of recreational activities at nearby Land Between the Lakes, including cycling, camping, fishing, hiking, horseback riding, ATV trails, and hunting. Paducah is also one of nine Creative Cities in the U.S. designated by the United Nations Educational, Scientific & Cultural Organization (UNESCO).