Income Needed to Buy a Home in Kentucky (2026)
Verdict: stretch — requires $74,053/year (#36 least affordable of 51 US states)
Kentucky ranks #36 of 51 US states for housing unaffordability in 2026. Buying the median home at $231,894 requires a household income of about $74,053. That's $9,527 more than the median household actually earns ($64,526) — a shortfall of 15% of typical income.
Kentucky's affordability ratio of 1.15 (required income ÷ actual median income) is 10.1% better than the median across all 51 US states (1.28). Home prices here sit 33.1% below the cross-state median of $346,668.
An effective property tax rate of 0.73% adds $141 per month — and homeowners insurance is a real burden here at $3,540/year ($295/month), well above what most states pay. All-in, the monthly PITI (principal, interest, taxes, insurance) comes to $1,728.
Kentucky monthly cost breakdown (2026)
| Median home price | $231,894 |
| Loan amount (10% down) | $208,705 |
| Monthly principal & interest | $1,292 |
| Monthly property tax (0.73% rate) | $141 |
| Monthly homeowners insurance | $295 |
| Total monthly PITI | $1,728 |
| Required household income | $74,053 |
| Median household income | $64,526 |
Run your own numbers
These figures model the median buyer. Your rate, down payment, and debts change the answer — check your personal maximum with the Home Affordability Analyzer or build a full payment schedule in the Advanced Mortgage Calculator. Closing costs typically add 2–5% on top — estimate them with the Closing Costs Estimator.
How Kentucky compares
- Oklahoma — similar affordability (ratio 1.14, requires $75,467)
- Illinois — similar affordability (ratio 1.14, requires $94,840)
- Alaska — similar affordability (ratio 1.14, requires $108,841)
- West Virginia — among the most affordable US states (requires $48,369)
- Iowa — among the most affordable US states (requires $74,199)
See every state and province ranked in the 2026 Mortgage Affordability Index.
Frequently asked questions
How much income do you need to buy a house in Kentucky in 2026?
About $74,053 per year to afford the median-priced home of $231,894, assuming a 10% down payment and standard 28% housing-cost-to-income guideline. The median Kentucky household earns $64,526.
What is the monthly cost of owning a median home in Kentucky?
Roughly $1,728 per month, including principal and interest, property tax, and homeowners insurance.
Is Kentucky affordable at the median income?
No. The required income exceeds the median household income by $9,527 (15%), ranking Kentucky #36 least affordable of 51 US states.
Methodology & sources
Assumes 10% down, 30-year fixed at prevailing 2026 rates, 28% housing-cost-to-income guideline. Home prices from Zillow ZHVI (March 2026); incomes from Census ACS 1-Year 2024; property taxes from Tax Foundation; insurance from Bankrate state averages. Figures model the median scenario and are not financial advice. Full sources on the affordability index.