Income needed to buy a house in Kentucky
A median-priced home in Kentucky costs $226,000. With 20% down you'd need about $62,049 a year, within reach of the state's median household income of $64,526. Kentucky ranks #5 of 51 for the lowest income needed.
Income needed: $62,049 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $62,049 a year to buy a $226,000 home in Kentucky with $45,200 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,197 |
| Property tax | $134 |
| Homeowners insurance | $117 |
| Total | $1,448 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $11,300 | $1,762 | $75,500 |
| 10% | $22,600 | $1,682 | $72,092 |
| 20% | $45,200 | $1,448 | $62,049 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in Kentucky: what's different
- Transfer tax
- 0.1% transfer tax
- On the median home
- $230
- Homestead break
- 65+ or disabled only
- First-time buyer help
- Kentucky Housing Corporation
- Transfer and recording taxes. The real estate transfer tax is 50 cents per $500 of value (0.1%), collected by the county clerk when the deed is recorded. On the median Kentucky home ($226,000), that's about $230 in transfer tax.
- Property tax breaks for your home. Only owners 65 and older or totally disabled get a homestead exemption: $49,100 of assessed value for 2025 and 2026, adjusted every two years. Apply with the county property valuation administrator by December 31.
- First-time buyer help. The Kentucky Housing Corporation offers mortgages and down payment help for first-time buyers through participating lenders. Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in the Kentucky metro areas we cover
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Louisville, KY | $72,958 | $265,900 | $74,305 |
| Lexington, KY | $83,088 | $306,900 | $71,444 |
| Cincinnati, OH (20% in KY) | $81,425 | $288,700 | $81,489 |
| Clarksville, TN (26% in KY) | $76,731 | $291,700 | $72,347 |
With 20% down, the median home takes about $72,958 a year in the Louisville area and $83,088 in the Lexington area, compared with $62,049 for the statewide median.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Metro areas centered in Ohio or Tennessee are included because many of their residents live in Kentucky; the share in the state is in parentheses. Rows are ordered by how many residents live in Kentucky. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in Kentucky less expensive than most states
- Home prices: the median value of $226,000 is 37% below the U.S. median of $360,600.
- Property tax: about 0.71% of value a year ($134 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,401 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $124 a month on this loan.
1 state needs at least 20% less income to buy its median home. States with a similar income requirement:
Frequently asked questions
How much do you need to make to buy a house in Kentucky?
About $62,049 a year for the median home of $226,000 with 20% down at 6.95%. With 10% down it's about $72,092.
What is the property tax rate in Kentucky?
The median Kentucky homeowner pays $1,611 a year, about 0.71% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in Kentucky?
Median rent is $998 a month, while owning the median home costs about $1,448 a month with 20% down, before maintenance. Renting affordably takes about $39,920 a year under the 30% rule.