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10 Most Affordable Housing Markets in Kentucky

Paducah Kentucky

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 an affordable 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.

1. Williamsburg
2. Mayfield
3. Madisonville
4. Morehead
5. Paducah
6. Corbin
7. Murray
8. London
9. Hopkinsville
10. Somerset

1. Williamsburg


Home price

$98,087

Mortgage

$93,183

Estimated Payment*

$671

*Payments mentioned do not include taxes, insurance, or HOA dues. Example purposes only. Not a commitment to lend.

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 see regularly see a moonbow – a rainbow produced by moonlight during each full moon. And with home prices under $100,000, there’s more to love than natural phenomena.

2. Mayfield

Home price

$131,382

Mortgage

$124,813

Estimated Payment

$899

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.

3. Madisonville

Home price

$143,131

Mortgage

$135,975

Estimated Payment

$979

According to Visit Madisonville, this town is perfect for anyone in search of fresh fare straight from the garden. From farmers markets to fruit orchards, it doesn’t get any fresher than this.

4. Morehead

Home price

$153,058

Mortgage

$145,406

Estimated Payment

$1,047

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 art galleries and museums.

5. Paducah

Home price

$158,539

Mortgage

$150,612

Estimated Payment

$1,084

On the banks of the Ohio River, Paducah offers a large dose of nature. Plus, homebuyers meeting eligibility requirements can get a zero-down USDA home loan anywhere in the town or surrounding areas. USDA considers the entire town of Paducah “rural," making the entire town eligible for the program.

6. Corbin

Home price

$159,291

Mortgage

$151,326

Estimated Payment

$1,089

Southern Living calls Corbin the “perfect weekend getaway.” But with home prices in the mid-100s, 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.

7. Murray

Home price

$164,930

Mortgage

$156,683

Estimated Payment

$1,128

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.

8. London

Home price

$167,412

Mortgage

$159,041

Estimated Payment

$1,145

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 features dozens of cuisine choices from American to Mexican to Jamaican.

9. Hopkinsville

Home price

$169,392

Mortgage

$160,922

Estimated Payment

$1,159

Among the larger towns on the list, Hopkinsville is home to 31,000 people. Local employment opportunities abound from companies in manufacturing, engineering, healthcare, and automotive equipment. A centerpiece of the town is the Christian County Courthouse, pictured above.

10. Somerset

Home price

$170,864

Mortgage

$162,321

Estimated Payment

$1,169

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.

Get pre-approved for your Kentucky home

Many towns and cities across Kentucky are affordable for just about any budget. 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 typical home prices as reported on the Zillow Home Value Index (ZHVI) Single-Family Home Time Series for November 2023. 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 using a 6.845% rate, the average rate at the time of data collection as published on Optimal Blue Mortgage Market Indices for a buyer with less than 20% down and a 700 FICO score. We added PMI costs per rates from mortgage insurance provider MGIC. The stated mortgage payment does not include homeowner’s insurance, property taxes, or HOA dues. To increase relevancy, we limited eligible cities to the top 3,000 largest by population in the U.S. per Zillow’s report.

About The Author:

Tim Lucas spent 11 years in the mortgage industry and now leverages that real-world knowledge to give consumers reliable, actionable advice. Tim has been featured in national publications such as Time, U.S. News, MSN, The Mortgage Reports, My Mortgage Insider, and more.

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