From world-famous chicken to Bluegrass music to outdoor adventures and rich history, Kentucky has just about everything.
And with its 10 most affordable cities offering homes well under $200,000, it seems like a budget-friendly paradise.
Homebuyers looking to escape high prices and finally get into a home of their own should look into these affordable pockets of the Bluegrass State.
Affordable Kentucky Cities and Typical Home Prices
| Ranking | City | Average Home Cost |
|---|---|---|
| 1 | Williamsburg | $123,680 |
| 2 | Mayfield | $155,658 |
| 3 | Madisonville | $162,991 |
| 4 | Corbin | $175,860 |
| 5 | Morehead | $181,712 |
| 6 | Paducah | $184,359 |
| 7 | London | $185,794 |
| 8 | Somerset | $188,674 |
| 9 | Murray | $190,883 |
| 10 | Henderson | $190,954 |
1. Williamsburg - $123,680
If you’ve never heard of a “moonbow,” you’re not alone. But Cumberland Falls State Park in Williamsburg is one of the few places on earth where you can regularly see a moonbow – a rainbow produced by moonlight during each full moon. And with the typical estimated monthly home payment costing just $946, there’s more to love than natural phenomena.
2. Mayfield - $155,658
A town that experienced devastation in December 2021 is slowly rebuilding. A powerful EF4 tornado destroyed homes and buildings across the city and county. The resilient town is coming back to life, but it has a long way to go. Homebuyers who want to participate in a new beginning should consider Mayfield, where you’ll find the average home running an affordable estimated $1,190 per month.
3. Madisonville - $162,991
According to Visit Madisonville, this town, with a population just under 20,000, is perfect for anyone seeking fresh fare straight from the garden. From farmers' markets to fruit orchards, it doesn’t get any fresher than this. The typical monthly cost of a home in Madisonville? An estimated $1,246.
4. Corbin - $175,860
Southern Living calls Corbin the “perfect weekend getaway.” But with home prices averaging around $175,000, you should call it home. The birthplace of Kentucky Fried Chicken, this town prides itself on southern charm. Nature lovers will enjoy Cumberland Falls, a 125-foot-wide waterfall known as the Niagara of the South. The typical home in Corbin comes with an estimated monthly price tag of $1,345.
5. Morehead - $181,712
This town of 7,000 might be small, but don’t underestimate the quality of life. In the midst of the Appalachian Mountains, you’ll find small-town solace while exploring the more than 100 miles of trails, an 8,000-acre lake, plus cultural attractions, including art galleries and museums. Properties in Morehead remain affordable, with the average home costing just an estimated $1,389 per month.
6. Paducah - $184,359
On the banks of the Ohio River, Paducah offers a hefty dose of nature. Plus, homebuyers meeting eligibility requirements can get a zero-down USDA home loan anywhere in the town or the surrounding areas. USDA considers the entire city of Paducah “rural," making the whole community eligible for the program. Conventional borrowers can expect to pay an estimated $1,410 per month for the average home in Paducah.
7. London - $185,794
On the edge of the Daniel Boone National Forest, London offers plenty of outdoor adventures. But the town of about 8,000 isn’t just for outdoor enthusiasts. It's also a culinary hot spot, featuring dozens of cuisine choices from American to Mexican to Jamaican. The average estimated monthly cost to buy a home in London? A cool $1,421.
8. Somerset - $188,674
A town of 12,000, Somerset generates millions in tourism revenue thanks to nearby Lake Cumberland, one of the largest in the eastern U.S. Full-time residents will enjoy boating, fishing, and so much more in this lake that boasts 1,200 miles of shoreline. Plus, living in Somerset is budget-friendly, with the typical property estimated to have a monthly payment of $1,443.
9. Murray - $190,883
The home of Murray State University, this college town offers plenty to do, like live music, art classes, and a historic downtown. For a taste of the area, drive the Calloway County Quilt Trail, where homes and businesses display large quilts, their patterns telling the family’s or property’s history. The only thing more charming than the city of Murray? Local property prices. The average home here costs just an estimated $1,460 per month.
10. Henderson - $190,954
Situated along the Ohio River, just across the border from Indiana, the city of Henderson offers reasonably priced homes, miles of hiking trails, and the scenic 649-acre John James Audubon State Park. There’s also a variety of employment opportunities in this town of 28,000 residents, with major local industries including agriculture, healthcare, and manufacturing. The monthly housing cost for the typical home in Henderson? An estimated $1,460.
Get Pre-Approved for Your Kentucky Home
Many towns and cities across Kentucky are affordable for just about any budget. From the charming city of Corbin to the riverfront towns of Henderson and Paducah, there’s somewhere for everyone. See what home price you qualify for by requesting your pre-approval from a reputable lender.
Methodology
To find the 10 most affordable housing markets in Kentucky, we started with average home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2025. We assumed a 5% down payment, the typical requirement for first-time buyers. We then calculated the monthly payment on a 30-year fixed mortgage at 6.395%, the recent 30-day average from rate marketplace I Can Buy based on a buyer with a 700 credit score putting 5% down. We added PMI costs per mortgage insurance provider MGIC and tax rates by state from TaxFoundation.org. Homeowner’s insurance estimates were calculated using Nerdwallet’s cost in each state for $300,000 in dwelling coverage. We multiplied this rate by 67.8%, the U.S. average of total market value represented by the structure according to ResiClub (since homeowners insurance is based on the structure, not total value). We then multiplied this rate by the average home’s total market value. We assumed no HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population nationwide per Zillow data.
Estimated payments are for example purposes only. Not a commitment to lend.
