Cost of Living in Clay City, KY

With a cost of living index of 59, Clay City, KY is one of the most affordable cities in the country. Living here is 41% cheaper than the national average and 19% below the Kentucky state average of 78. Clay City is a small community of 1,352 residents.

Housing costs are the biggest factor in Clay City's cost of living. The median monthly rent is $609 (54% below the US median of $1,319), and the median home value sits at $108,600 (64% below the national median of $304,900). At current prices, the median home costs roughly 3.3x the median household income — a moderately affordable ratio by today's standards.

The median household income in Clay City is $32,571, which is 57% lower than the national median of $75,149. Residents spend roughly 22% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.