The 42501 zip code in Somerset tops our ranking of the most affordable places to live in Kentucky.
We looked at 128 zip codes in the state, evaluating home values, rental costs, energy rates, property taxes, and five other affordability indicators. We used the data we gathered to calculate our proprietary Affordability Score for each zip code.
Top 10 most affordable places to live in Kentucky
| Rank | City | Affordability Score | Median home value | Rental costs |
|---|---|---|---|---|
| 1 | Somerset 🥇 | 99.3 | $151,794 | $1,398 |
| 2 | Ashland 🥈 | 99.3 | $117,001 | $1,398 |
| 3 | Jackson 🥉 | 95.9 | $91,181 | $1,398 |
| 4 | London | 95.3 | $181,097 | $1,398 |
| 5 | Greenville | 95.1 | $146,885 | $1,398 |
| 6 | Princeton | 94.2 | $144,951 | $1,398 |
| 7 | Williamsburg | 93.5 | $130,104 | $1,398 |
| 8 | Hazard | 91.9 | $106,442 | $1,398 |
| 9 | Irvine | 91.5 | $131,144 | $1,398 |
| 10 | Manchester | 91.5 | $122,997 | $1,398 |
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1. Somerset
Here's why the 42501 zip code in Somerset is Kentucky's most affordable place to live.
🔎 Key data about Somerset
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 99.3 | No. 1 | N/A |
| Median home value | $151,794[1] | No. 22 | -$111,242.84 |
| Home affordability ratio | 3.1 | No. 26 | -0.7 |
| Home value five-year change | 5.9%[2] | No. 5 | -25.7% |
| Home value one-year forecast | -3.1%[3] | No. 3 | -3.5% |
| Rental costs | $1,398[4] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $48,965[5] | No. 104 | -$21,048 |
| Property taxes | $1,008[6] | No. 25 | -$867 |
| Energy costs | $0.10 kWh[7] | No. 14 | -$0.02 |
Somerset's 42501 zip code is the cheapest place to live in Kentucky, leading the 128 markets we evaluated.
The median home value is $151,794, making it the 22nd-cheapest housing market in the state. Forecasts project a -3.1% change in home values in the next year. Rent in the zip code averages $1,398 per month, which is the 39th cheapest amount in Kentucky.
The median property tax for homeowners in Somerset is $1,008 per household, the No. 25 ranked market in Kentucky.
Residents pay $0.10 per kWh of electricity, which ranks No. 14 among Kentucky markets.
2. Ashland
The 41101 zip code is the 2nd-cheapest place to live in Kentucky.
🔎 Key data about Ashland
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 99.3 | No. 2 | N/A |
| Median home value | $117,001[8] | No. 7 | -$146,036.09 |
| Home affordability ratio | 2.2 | No. 1 | -1.6 |
| Home value five-year change | 3.3%[9] | No. 3 | -28.4% |
| Home value one-year forecast | -0.9%[10] | No. 14 | -1.3% |
| Rental costs | $1,398[11] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $53,889[12] | No. 93 | -$16,124 |
| Property taxes | $1,219[13] | No. 38 | -$656 |
| Energy costs | $0.15 kWh[14] | No. 126 | $0.03 |
Ashland's 41101 zip code has a median home value of $117,001, which is the 14th-cheapest housing market in Kentucky. You can rent for an average of $1,398 per month. That's the 42nd-cheapest price in the state.
The average household income in the zip code is $53,889, which ranks 93rd-highest in the state.
Homeowners in Ashland pay a median property tax of $1,219 per year, making it the 38th-most affordable market in Kentucky.
Ashland ranks No. 126 among Kentucky energy markets. You'll pay $0.15 per kWh of electricity.
3. Jackson
The 3rd-cheapest place to live in Kentucky is Jackson's 41339 zip code.
🔎 Key data about Jackson
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 95.9 | No. 3 | N/A |
| Median home value | $91,181[15] | No. 2 | -$171,855.89 |
| Home affordability ratio | 2.6 | No. 8 | -1.1 |
| Home value five-year change | 2.8%[16] | No. 2 | -28.9% |
| Home value one-year forecast | 0.4%[17] | No. 54 | 0.0% |
| Rental costs | $1,398[18] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $34,764[19] | No. 123 | -$35,249 |
| Property taxes | $555[20] | No. 1 | -$1,320 |
| Energy costs | $0.14 kWh[21] | No. 120 | $0.02 |
The No. 2 cheapest housing market in Kentucky is Jackson's 41339 zip code, with a median home value of $91,181. Rents in the market average $1,398 per month, making it the 42nd-most affordable rental market in the state.
The median property tax for households in Jackson is $555, which makes it the 1st-cheapest place in Kentucky. Jackson ranks No. 120 among Kentucky markets by energy costs. Residents pay $0.14 per kWh of electricity.
4. London
The 40741 zip code in London comes in at No. 4 on our list of the cheapest places to live in Kentucky.
🔎 Key data about London
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 95.3 | No. 4 | N/A |
| Median home value | $181,097[22] | No. 35 | -$81,940.28 |
| Home affordability ratio | 2.8 | No. 13 | -1.0 |
| Home value five-year change | 29.4%[23] | No. 44 | -2.3% |
| Home value one-year forecast | -1.3%[24] | No. 7 | -1.7% |
| Rental costs | $1,398[25] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $64,552[26] | No. 63 | -$5,461 |
| Property taxes | $1,019[27] | No. 26 | -$856 |
| Energy costs | $0.10 kWh[28] | No. 22 | -$0.02 |
The No. 35 cheapest housing market in Kentucky is London's 40741 zip code, where the median home value is $181,097. Renters here pay an average of $1,398 per month.
When it comes to energy costs, London ranks 22nd among Kentucky markets. Residents pay $0.10 per kWh of electricity.
The median property tax for households in the zip code is $1,019, which makes it the 26th-cheapest market in Kentucky.
5. Greenville
The 42345 zip code in Greenville ranks No. 5 among Kentucky's most affordable places to live.
🔎 Key data about Greenville
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 95.1 | No. 5 | N/A |
| Median home value | $146,885[29] | No. 18 | -$116,151.75 |
| Home affordability ratio | 2.4 | No. 3 | -1.4 |
| Home value five-year change | 26.0%[30] | No. 32 | -5.7% |
| Home value one-year forecast | 0.4%[31] | No. 54 | 0.0% |
| Rental costs | $1,398[32] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $62,222[33] | No. 70 | -$7,791 |
| Property taxes | $1,000[34] | No. 24 | -$875 |
| Energy costs | $0.08 kWh[35] | No. 4 | -$0.04 |
Greenville's 42345 zip code has a median home value of $146,885, the 18th-cheapest market in the state. Forecasts project a 0.4% change in home values in the next year.
The median property tax per household in Greenville is $1,000. It's the 24th-cheapest market by tax rate in Kentucky.
6. Princeton
The No. 6 most affordable place to live in Kentucky is the 42445 zip code.
🔎 Key data about Princeton
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 94.2 | No. 6 | N/A |
| Median home value | $144,951[36] | No. 16 | -$118,086.62 |
| Home affordability ratio | 2.6 | No. 9 | -1.1 |
| Home value five-year change | 25.2%[37] | No. 29 | -6.4% |
| Home value one-year forecast | 0.4%[38] | No. 54 | 0.0% |
| Rental costs | $1,398[39] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $55,096[40] | No. 89 | -$14,917 |
| Property taxes | $665[41] | No. 4 | -$1,210 |
| Energy costs | $0.10 kWh[42] | No. 17 | -$0.02 |
The back half of our top 10 kicks off with Princeton's 42445 zip code, which has the 16th-cheapest home values in Kentucky. The median home value is $144,951. Rents average $1,398 per month, making it the 42nd-most affordable rental market in the state.
Residents pay $0.10 per kWh of electricity. It's the 17th-cheapest energy market.
7. Williamsburg
Williamsburg's 40769 zip code is the 7th-cheapest place to live in Kentucky.
🔎 Key data about Williamsburg
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 93.5 | No. 7 | N/A |
| Median home value | $130,104[43] | No. 10 | -$132,932.79 |
| Home affordability ratio | 3.0 | No. 21 | -0.8 |
| Home value five-year change | 31.6%[44] | No. 60 | 0.0% |
| Home value one-year forecast | -1.3%[45] | No. 7 | -1.7% |
| Rental costs | $1,398[46] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $43,878[47] | No. 116 | -$26,135 |
| Property taxes | $573[48] | No. 2 | -$1,302 |
| Energy costs | $0.10 kWh[49] | No. 19 | -$0.02 |
You'll find the 10th-cheapest home values in Kentucky in Williamsburg's 40769 zip code. The median value: $130,104. Renters in Williamsburg pay an average of $1,398 per month.
Homeowners in Williamsburg pay a median property tax of $573 per year, which is Kentucky's 2nd-most affordable market.
The average household income is $43,878, which ranks 116th-highest in the state.
8. Hazard
The 8th-cheapest place to live in Kentucky is Hazard's 41701 zip code.
🔎 Key data about Hazard
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.9 | No. 8 | N/A |
| Median home value | $106,442[50] | No. 5 | -$156,595.23 |
| Home affordability ratio | 2.7 | No. 10 | -1.1 |
| Home value five-year change | 21.4%[51] | No. 14 | -10.2% |
| Home value one-year forecast | 0.4%[52] | No. 54 | 0.0% |
| Rental costs | $1,398[53] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $39,439[54] | No. 120 | -$30,574 |
| Property taxes | $756[55] | No. 10 | -$1,119 |
| Energy costs | $0.15 kWh[56] | No. 126 | $0.03 |
The 5th-cheapest housing market in Kentucky is Hazard's 41701 zip code, with a median home value of $106,442. Renters pay an average of $1,398 per month, the No. 42 rental market in the state.
The median property tax for households in Hazard is $756, which makes it the 10th-cheapest place in Kentucky. The average household income of $39,439 ranks 120th.
9. Irvine
Irvine's 40336 zip code sneaks into the top ten of Kentucky's most affordable places to live.
🔎 Key data about Irvine
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.5 | No. 9 | N/A |
| Median home value | $131,144[57] | No. 11 | -$131,893.51 |
| Home affordability ratio | 2.8 | No. 14 | -0.9 |
| Home value five-year change | 10.9%[58] | No. 7 | -20.7% |
| Home value one-year forecast | 1.2%[59] | No. 105 | 0.8% |
| Rental costs | $1,398[60] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $46,367[61] | No. 112 | -$23,646 |
| Property taxes | $812[62] | No. 13 | -$1,063 |
| Energy costs | $0.13 kWh[63] | No. 101 | $0.01 |
The 11th-cheapest housing market in Kentucky is Irvine's 40336 zip code, where the median home value is $131,144. Renters pay an average of $1,398 per month. It's the state's 42nd-cheapest rental market.
The median property tax for households within the zip code is $812, which makes it the 13th-cheapest property tax rate in Kentucky.
10. Manchester
The final spot on our list of the most affordable places to live in Kentucky goes to the 40962 zip code in Manchester.
🔎 Key data about Manchester
| Data point | Value | Rank (out of 128 markets) | Difference from median or average |
|---|---|---|---|
| Affordability Score | 91.5 | No. 10 | N/A |
| Median home value | $122,997[64] | No. 9 | -$140,040.37 |
| Home affordability ratio | 2.9 | No. 16 | -0.9 |
| Home value five-year change | 33.8%[65] | No. 72 | 2.1% |
| Home value one-year forecast | -1.5%[66] | No. 5 | -1.9% |
| Rental costs | $1,398[67] | No. 42 | $0 |
| Rent affordability ratio | 2.00% | No. 39 | 0.0% |
| Median household income | $42,852[68] | No. 118 | -$27,161 |
| Property taxes | $680[69] | No. 5 | -$1,195 |
| Energy costs | $0.13 kWh[70] | No. 113 | $0.01 |
The 9th-most affordable market in Kentucky is Manchester's 40962 zip code. The median home value is $122,997. Rent in the market costs $1,398 per month on average, making it the 42nd-most affordable rental market in Kentucky.
The median property tax for households in Manchester is $680, which is the 5th-cheapest property tax rate in the state.
Manchester ranks No. 113 among Kentucky markets by energy costs, with households paying $0.13 per kWh of electricity.
How we ranked the most affordable places in Kentucky
We evaluated 128 zip codes in Kentucky with a population over 10,000 on nine metrics. We then assigned each market an Affordability Score based on its weighted and combined rankings.
Our proprietary Affordability Score is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the affordability of a particular zip code. It takes into account these key data points for each zip code.
- Median home value: The median home value for each zip code comes from the Zillow Home Value Index. The lower the median home value relative to the median value in Kentucky, the higher our score on this component. We assign a weight of 13.0% to median home value.
- Home affordability ratio. The home affordability ratio is the typical median home value divided by the median household income in the zip code, which reveals the number of years of household income needed to afford a home in that zip code. A lower ratio is better because it means more households can afford a home. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 28.0% to the home affordability ratio.
- Home value five-year change: The home value five-year change is the amount that the median home value in the zip code has risen or fallen during the last five years. Our data comes from the Zillow Home Value Index. We assign a weight of 10.0% to the home value five-year change.
- Home value one-year forecast: The home value one-year forecast comes from Zillow Forecast data. It projects how much home values in the zip code are forecasted to change in the next year. We assign a weight of 8.0% to the home value one-year forecast.
- Rental costs. The rental costs are the observed rents in the zip code, sourced from the Zillow Observed Rent Index. The index includes "listed rents that fall into the 40th to 60th percentile range for all homes and apartments in a given region." We assign a weight of 7.0% to rental costs.
- Median household income: The inflation-adjusted median household income figures for the zip code comes from the U.S. Census American Community Survey. We assign a weight of 5.0% to median household income.
- Rent affordability ratio. The rent affordability ratio is the ratio of rental costs divided by median household income, which provides the percentage of household income needed to pay a typical month’s rent in the zip code. The data comes from the Zillow Observed Rent Index and the U.S. Census American Community Survey. We assign a weight of 17.0% to the rent affordability ratio.
- Property taxes: The property tax figures are the median real estate taxes paid in the zip code, sourced from the U.S. Census American Community Survey. The lower the property tax rate relative to the Kentucky average, the higher our score on this component. We assign a weight of 8.0% to property taxes.
- Energy costs: The energy costs are the costs of a kilowatt hour (kWh) of residential electricity in the zip code, sourced from the U.S. Department of Energy. The lower the cost of electricity relative to the Kentucky average, the higher our score on this component. We assign a weight of 4.0% to energy costs.
✍️ Editor’s note: Our Affordability Score identifies the most affordable places in a state by zip code. Often the zip code we identify will represent an entire city or portion of a city.
Occasionally the zip code we identify will encompass an area that includes one or more small towns. In these cases, the data we’ve gathered applies to the entire zip code, not just the single town we’re using to help identify the zip code's location.
If you’re looking to move to one of these affordable places, we recommend doing additional research to make sure the costs in the area — and the quality of life it offers — meet your specific needs.
