What is the cost of living in Kentucky? doxo breaks down key insights about Kentucky’s household expenses, with a close look into how bills differ between towns and cities across the state.
According to Doxo’s The Cost of Bills Index™ (COBI), the average household in Kentucky pays $1,783 in monthly expenses. doxoINSIGHTS compares the cost of the ten most common household bills across different regions. This includes Utilities, Cable & Phone, Mobile Phone, Auto Loans, Auto Insurance, Life Insurance, Health Insurance, Alarm & Security, Rent, and Mortgage.
The data sheds light on Kentucky’s cost of living through other metrics as well. For example, the “percent of household income” data point shows what percentage of their household income residents spend on bills each month.
By leveraging these tools, residents can gain a clearer understanding of their household expenses and optimize their financial planning.
Kentucky ranks as the 47th most expensive state in the US for household bills
According to doxo’s COBI report, Kentucky is ranked as the 47th most expensive state in the U.S. for household bills, making it the least expensive state for these expenses.
At $21,398 per year, Kentucky’s household expenses, on average, are 16% lower than the US average of $25,513.
Absolute dollar amounts don’t tell the full story, however. doxo’s “Percentage of Household Income” data provides a more proportional look at bill spending in a particular location. Kentucky households spend 35% of their income on bills.
COBI helps consumers understand how much it costs to live in one area as compared to another as it relates to the most common household bills. For COBI, the number 100 represents the national average and then, states, counties and cities are assigned a number, either above or below 100, based on how they compare to the national average. The COBI for Kentucky is 84.
- Average Bill Cost per Household: $1,783 per month
- Cost of Bills Index(COBI): 84
- doxoINSIGHTS State Rank: #47
- Percent of Household Income Used for Bills: 35%
- Compared to the National Average: 16% lower
Kentucky Household Expenses are 16% Lower Than the National Average
The average Kentucky household pays $1,783 per month in the 10 most common household bills. The least expensive of these are alarm and security bills.
On the lowest end of the spectrum, the average monthly payment for alarm and security bills in Kentucky is $82, compared to the national average of $85, making it 4% lower than average.
Monthly mortgage bills are the most significant of the 10 most common bills for Kentucky residents. The average monthly mortgage payment is $1,100, compared to the national average of $1,402, making it 22% less expensive.
Average Kentucky Household Bill Spending
| Bill Category | Average Kentucky Monthly Bill | National Average Monthly Bill | Kentucky Percent +/- National Average |
| Mortgage | $1,100 | $1,402 | 22% lower |
| Rent | $918 | $1,300 | 29% lower |
| Auto Loan | $437 | $496 | 12% lower |
| Utilities | $350 | $362 | 3% lower |
| Auto Insurance | $204 | $209 | 2% lower |
| Health Insurance | $98 | $114 | 14% lower |
| Mobile Phone | $131 | $121 | 8% higher |
| Cable & Internet | $115 | $122 | 6% lower |
| Life Insurance | $71 | $87 | 18% lower |
| Alarm & Security | $82 | $85 | 4% lower |
| Total | $1,783 | $2,126 | 16% lower |
Prospect has the highest cost of living in Kentucky for household bills
Residents of Prospect pay the highest household bills in the state of Kentucky, at an average of $2,744 per month. The Cost of Bills Index (COBI) for Prospect is 129, meaning the average cost of bills in this city is 29% higher than the national average.
In proportion to household income, monthly bills in Prospect makeup 20% of the average annual household income of $167,193.
Access detailed infographics about each city or town by clicking on the hyperlinks in the “City” column in the tables below. You can also browse doxoINSIGHTS’ regional bill comparison database to see infographics about more than 4,200 cities and towns across all 50 states in the US.
10 Most Expensive Kentucky Cities for Household Bills
| Rank | City | Average Income | Monthly Bill Expenses Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Average | Percent of Household Income Used for Bills |
| 1 | Prospect | $167,193 | $2,744 | 129 | 29% higher | 20% |
| 2 | Crestwood | $116,176 | $2,558 | 120 | 20% higher | 26% |
| 3 | Hebron | $123,061 | $2,480 | 117 | 17% higher | 24% |
| 4 | Union | $131,442 | $2,435 | 115 | 15% higher | 22% |
| 5 | La Grange | $90,652 | $2,106 | 99 | 1% lower | 28% |
| 6 | Alexandria | $97,299 | $2,103 | 99 | 1% lower | 26% |
| 7 | Vine Grove | $73,094 | $2,092 | 98 | 2% lower | 34% |
| 8 | Fort Thomas | $93,750 | $2,066 | 97 | 3% lower | 26% |
| 9 | Burlington | $98,295 | $2,052 | 97 | 3% lower | 25% |
| 10 | Taylorsville | $100,693 | $2,028 | 95 | 5% lower | 24% |
Monticello has the lowest cost of living in Kentucky for household bills
Out of 81 cities, Monticello is the most affordable place in Kentucky, with residents paying $1,281 on average for household bills, accounting for 37% of annual income of $41,970. The Cost of Bills Index (COBI) for Monticello is 60, meaning the average cost of bills in this city is 40% below the national average.
Grayson is the second most affordable city in Kentucky, with residents paying $1,304 per month on average.
Also on the list of the 10 least expensive cities in Kentucky are Irvine ($1,333), Olive Hill ($1,337) and Greenville ($1,344).
10 Most Affordable Kentucky Cities for Household Bills
| Rank | City | Average Income | Monthly Bill Expense Per Household | Cost of Bills Index (COBI) – Standard | % +/- Than the National Average | Percent of Household Income Used for Bills |
| 72 | Hazard | $43,307 | $1,412 | 66 | 34% lower | 39% |
| 73 | Middlesboro | $30,000 | $1,406 | 66 | 34% lower | 56% |
| 74 | Jackson | $38,209 | $1,405 | 66 | 34% lower | 44% |
| 75 | Leitchfield | $44,958 | $1,389 | 65 | 35% lower | 37% |
| 76 | Manchester | $36,017 | $1,372 | 65 | 35% lower | 46% |
| 77 | Greenville | $67,172 | $1,344 | 63 | 37% lower | 24% |
| 78 | Olive Hill | $50,940 | $1,337 | 63 | 37% lower | 31% |
| 79 | Irvine | $40,711 | $1,333 | 63 | 37% lower | 39% |
| 80 | Grayson | $45,339 | $1,304 | 61 | 39% lower | 35% |
| 81 | Monticello | $41,970 | $1,281 | 60 | 40% lower | 37% |
Some individuals might be considering moving from a more expensive city to a less expensive one. For those making such decisions, doxoINSIGHTS can be a valuable resource. It allows consumers to compare household expenses in Kentucky with average bills in various cities and states nationwide.