Cost of Living in Somerset, KY

With a cost of living index of 69, Somerset, KY is one of the most affordable cities in the country. Living here is 31% cheaper than the national average and 9% below the Kentucky state average of 78. Somerset is a smaller community of 12,108 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Somerset's cost of living. The median monthly rent is $830 (37% below the US median of $1,319), and the median home value sits at $140,900 (54% below the national median of $304,900). At current prices, the median home costs roughly 4.3x the median household income — a moderately affordable ratio by today's standards.

The median household income in Somerset is $32,910, which is 56% lower than the national median of $75,149. Residents spend roughly 30% of household income on rent. This is near the 30% threshold that financial experts generally consider the upper limit of affordability. 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.