Cost of Living in Lancaster, KY
Population 3,960 · Kentucky · Data vintage 2023
(100 = US avg)
Lancaster's median household income of $45,795 is a meaningful share below the national figure, which shapes most of the downstream economic indicators — from housing affordability to the share of residents living below the poverty line (25% here). Unemployment has stayed elevated relative to the national figure — 15.3% as of the most recent ACS release — which shows up in household-income and poverty figures as well.
Located 30 miles south of Lexington-Fayette urban county, Lancaster falls within that metro's commuting orbit. Median home values run roughly 50% lower than Lexington-Fayette urban county's $272,000.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Lancaster
The median home value in Lancaster is $134,700 — 56% below the national median of $305,000. Median rent runs $768/month, 42% lower than the national median of $1,314/month. The median household income of $45,795/year is 39% lower than the US median of $74,580. The local unemployment rate is 15.3%, above the national average of 4.8%. Kentucky's top state income tax rate is 4.0% and the combined sales tax is 6.0%. Overall, Lancaster has a cost of living index of 50 versus the US average of 100, meaning it is 50% less expensive.
Lancaster has limited residential data
Detailed housing and income data is limited for this location. Here are the nearest cities with full cost of living data:
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
🏫 Schools
NCES CCD 2019 — public school district data
Frequently Asked Questions
What is the cost of living in Lancaster, KY?
Lancaster has a cost index of 50 (100 = national average). It is 50% below the national average.
What is average rent in Lancaster, KY?
The median gross rent in Lancaster is $768 per month based on 2023 Census data.
What is the average home price in Lancaster?
The median home value in Lancaster is $134,700 according to Zillow and Census data.
What is the median income in Lancaster?
The median household income in Lancaster is $45,795 per year (2023 ACS 5-year estimates).
What is the sales tax in Lancaster, KY?
The combined state and local sales tax rate in Lancaster is 6.0%. The Kentucky state income tax top rate is 4.0%.
Is Lancaster, KY affordable?
Yes, Lancaster is generally considered affordable, with a cost of living index of 50 — about 50% below the US national average of 100.
Lancaster at a Glance
- Population
- 3,960
- Median Income
- $45,795
- Home Value
- $134,700
- Median Rent
- $768/mo
- Unemployment
- 15.3%
- Sales Tax
- 6.0%
Nearby Cities
Explore county-level cost of living data
Kentucky Rankings
Similar Cost Cities
Cities in other states with comparable housing costs