A+
11%
Overall NAT. AVG.
1%
Goods & Services NAT. AVG.
36%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Somerset Kentucky National
Cost of living8990100
Goods & Services101101100
Groceries101101100
Health care8484100
Housing6470100
Transportation9292100
Utilities104104100

An Overview of Cost of Living in Somerset, KY

Are you thinking about relocating, but curious about the potential cost of living in Somerset? Is it more expensive or more affordable than average? Based on the most recent report, the cost of living in Somerset stands at 89, making it 11% lower than the national average. The cost of living directly affects the affordability of one's desired lifestyle. Knowing the cost of housing, transportation, groceries and other essentials in the new area allows people to gauge whether they can maintain their preferred standard of living.

Is Somerset Affordable?

Is Somerset affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Somerset, the median home price is 38.6% lower than the national average and monthly rent prices are 29.4% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Somerset boasting a median household income of $27,739, 49.9% lower than the national average.

What Factors can Influence the Cost of Living in Somerset?

Urbanization: Larger, urban centers, known for their wealth of amenities and strong employment prospects, often exhibit an elevated cost of living, primarily attributable to the heightened demand for services and residential relocation. Consequently, this scenario leads to elevated home prices and higher rental rates. In contrast, sparsely populated rural areas or regions characterized by diminished demand typically provide a more limited array of amenities and experience slower job market growth, resulting in a more affordable cost of living.

Groceries: Grocery costs have continued to increase significantly over the last 2-3 years. In some markets the cost of food has gone up by more than 20% in that period. While other markets have managed to see only a moderate uptick. These food costs can have a major impact on the cost of living in any area. In Somerset, the groceries index is 1.3% higher than the national average.

Housing: High demand for housing in desirable locations can drive up property prices and rental rates. This can be a primary contributor to a higher cost of living. While low demand for housing, especially in undesirable locations, can have the reverse effect and drive prices down, resulting in a lower cost of living. The housing index in Somerset, is 35.8% lower than the national average.

Where is the Data From?

The Somerset cost of living data you see above is sourced from the C2ER cost of living index, providing a practical and accurate means of comparing living expenses in urban areas. Updated quarterly, this index gathers data from over 300 independent researchers, covering more than 60 goods and services, in 6 different categories. These selections are made meticulously to represent a wide range of consumer expenditure categories. The weightings applied to cost differences are based on government survey data that tracks spending patterns among professional and executive households. It's important to note that while the C2ER index excludes data on sales or income tax rates, AreaVibes factors tax rates into the overall cost of living score for each region.

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Cost Of Living Quick Facts

  • The cost of living in Somerset is 2% lower than the Kentucky average
  • The cost of living in Somerset is 11% lower than the national average
  • Somerset housing is 36% lower than the national average
  • Kentucky general sales tax is 18% higher than the national average
  • Kentucky state income tax is 122% higher than the national average

Most Affordable Places to Live in and Around Somerset

See all the best places to live around Somerset

Compare Somerset, KY Cost of Living

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      Salary Calculator

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$62,833$5,236$1,466$1,885
      Renters$22,046$1,837$514$661
      The percent of monthly income spent on housing can be a good indicator of the affordability of housing in Somerset, KY, as well as the overall cost of living. As a general rule of thumb, the debt-to-income ratio (DTI) for homeowners or renters should be not more than 28 percent of gross income to be spent on housing related costs and not more than 36 percent of income on all expenses, including debts. The median income for Somerset homeowners, is $62,833. This would allow for a maximum of $1,466 per month to be spent on housing costs. For renters, the median monthly income is $22,046 which would result in a maximum of $514 to be spent on rental costs.

      Kentucky Sales Tax

      State General Sales Tax With Max Surtax
      Kentucky 6% 6%

      Kentucky Income Tax

      State Income Tax (Low) Income Tax (High)
      Kentucky 5% 5%

      Goods & Services

      Item Somerset National avg. Difference
      Haircut $26.50$24.269.2%
      Beauty Salon $53.07$45.5616.5%
      Toothpaste $3.50$3.705.6%
      Shampoo $1.21$1.285.3%
      Movie $13.05$12.137.6%
      Bowling $21.91$18.0021.7%

      Groceries

      Item Somerset National avg. Difference
      Ground Beef $6.07$5.844.0%
      Fried Chicken $1.40$1.5711.0%
      Milk $4.72$4.671.0%
      Potatoes $5.19$4.935.1%
      Pizza $10.35$12.0914.4%
      Beer $9.84$10.415.5%

      Health Care

      Item Somerset National avg. Difference
      Optometrist $87.52$125.6830.4%
      Doctor $106.15$135.7821.8%
      Dentist $102.55$113.299.5%
      Ibuprofen $10.64$10.650.1%
      Lipitor $364.92$468.6022.1%

      Housing

      Item Somerset National avg. Difference
      Home Price $113,400.00$184,700.0038.6%
      Avg. Mortgage Payment $1,809.12$2,346.6922.9%
      Apartment Rent $670.00$949.0029.4%

      Transportation

      Item Somerset National avg. Difference
      Gasoline $3.11$3.4610.2%
      Tire Balancing $58.38$59.922.6%

      Utilities

      Item Somerset National avg. Difference
      All Electricity $207.41$193.996.9%
      Phone $192.46$192.250.1%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Eubank, KY3628515.0%
      Ferguson, KY8688713.0%
      Science Hill, KY8148811.8%
      Burnside, KY9798811.6%
      Somerset, KY11,5488911.2%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Valley Falls, RI11,54811514.9%
      Muscoy, CA11,54612020.5%
      Elk City, OK11,544919.2%
      Wallington, NJ11,55313130.7%
      Mountain Top, PA11,5531000.5%
      Somerset, KY11,5488911.2%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.