Cost of Living in Louisville, KY 2023

Louisville lies in the northern portion of Kentucky, situated just shy of the Indiana border. Known for the famous Kentucky Derby, University of Louisville’s sports teams, and excellent fried chicken, Louisville is a great place to call home.

Fortunately, Louisville is a relatively affordable city, especially for those looking to blend Midwestern and Southern charm with big city living.

Of course, before you begin packing your bags for your move to Derby City, you’ll need to ensure that you’ve updated your budget.

This guide will explore Louisville’s cost of living to help you build your budget as a new resident. Let’s get started.

Louisville Housing Costs

Fortunately, you won’t have to spend an arm and a leg on housing costs in Louisville. According to our Rent Report, the average rent for a one-bedroom apartment in Louisville is $836. The average rent for a two-bedroom apartment in Louisville costs $1,042.

Compared to similar cities, Louisville is on the lower end of the rent cost spectrum. For example, the median rent for a two-bedroom apartment is $1,042 which is almost $400 cheaper than in Phoenix.

Although the Louisville rental market took a hit as a result of the pandemic, rent prices have generally rebounded. According to our rent report, median rent prices are up by 4.8% in a year-over-year comparison.

As the University of Louisville is located within the city, you’ll find that splitting rent with roommates is quite common. Not to mention, it’s a great way to save on the already low rent.

You can also keep an eye out for rent specials in Louisville to find rent discounts, waived fees, and other incentives designed to get renters into vacant apartments.

You’ll find more of these cheap apartments in Louisville on the market in the winter months, when interest in renting is at its lowest.

Finding the Best Louisville Apartment for You

If you're uncertain about a neighborhood, consider a month-to-month apartment before making a long-term 12 month commitment. If it's your first time renting or if you don't have a high credit score, consider no credit check apartments. Lastly, if you prefer to rent from the owner of an apartment and have a more personal relationship with them rather than property managers, consider a for rent by owner apartment.

Louisville Transportation

According to data from MIT’s Living Wage Calculator, a single Louisville resident spends an average of $5,477 annually or $456.42 monthly on transportation costs related to private vehicle ownership, while a family of four with two working adults and two children spends $14,484 annually or $1,207 a month.

Frugal residents can save on transportation costs in Louisville if they choose the right neighborhood. The city rates a 34 walk score, a 27 transit score, and a 43 bike score.

While public transportation could certainly use some improvement, it’s passable and can get you to where you need to go.

If you choose to use public transportation as your sole means of getting around in Louisville, you can expect to pay $600 annually for twelve 30-day passes.

That’s a far cry from $5,477, but your choice in the matter comes down to preference.

Louisville Food Costs

Good eats in Louisville often come in the form of Southern delicacies, including hushpuppies, bourbon, and catfish.

You’ll find a great variety of foods in the city with many choices when you choose to order takeout or dine in.

Just keep in mind that a three-course meal for one at a mid-tier restaurant in Louisville will cost you $60. A meal at an inexpensive restaurant costs $15 for a single adult.

That said, unless your fridge is just for decoration, you won’t be eating out every night.

Grocery shopping in Louisville costs you $3,926 annually as a single resident, and $11,564 if you are feeding a family of four with two adults and two children.

Louisville Healthcare Costs

First and foremost, if you are currently uninsured or will be in the near future, head to Healthcare.gov to find an affordable health insurance plan.

You do not want to be uninsured in the event of a medical emergency, as health expenses can be a major financial blow.

Louisville residents pay health insurance rates that are on par with other areas of the country.

A single Louisville resident will pay $3,143 annually for an employer-sponsored health insurance plan. A family of four will pay $8,083 for the same.

Health insurance costs can feel like a burden, but they are a necessary evil when it comes to medical costs.

Louisville Utilities

The average monthly utility bill in Louisville costs $185 per household, which is similar to the national average of $240 average utility bill in the US. When you add Internet (60 Mbps or More, Unlimited Data, Cable/ADSL), you'll spend an extra $60.33 for a total of $245.33.

Fortunately, once you cover that bill, you’re set for water, gas, fuel, and electricity, the basic utilities.

Of course, it’s possible to reduce your utility bill by making a few changes.

For one, keep an eye out for apartments with dishwashers. Not only will they save you time, but they will also save you many gallons of water per load.

You can also look for apartments with energy-efficient appliances, as they use electricity more efficiently and will help to lower your bill.

Finally, be aware of how much heating and cooling you are using.

You don’t have to freeze in the winter or overheat in the summer, but you should try to pair heating and cooling with things like layered clothes in the winter or single-room cooling in the summer.

Once you have a full month under your belt, you can better estimate your monthly utility costs.

Fitness and Entertainment

If you plan on hitting the gym in Louisville, expect to pay $31.50 a month or $378 annually for a gym membership.

You can save on these costs by getting into low-cost workouts like running, jumping rope, walking, biking, and more.

Of course, you’ll have to deal with the upfront investment and maintenance costs (bikes, repairs, shoes, etc.). So, it’s primarily a choice based on preferences.

As for entertainment, there’s plenty to do and see in Louisville!

If you enjoy spending your time outdoors, you’ll enjoy a trip to Louisville Waterfront Park. The park boasts 85-acres of green space near the city’s waterfront.

Park-goers can usually be seen enjoying outdoor activities such as walking, yoga, skating, picnicking, and more.

Louisville Waterfront Park is also home to annual festivals, major Louisville events, and a popular Fourth of July celebration.

Here’s a look at some other popular entertainment options and their prices for adults:

• Slugger Museum and Factory: $18
• Kentucky Derby Museum: $18
• Churchill Downs: $5 general admission. (varies greatly depending on the event)
• Louisville Cardinals Basketball: $33 (average ticket price)

Although Louisville isn’t known as an entertainment hotspot, you’ll certainly never be bored in the city!

Other Expenses to Consider in Louisville

When living in Louisville, there are very few hidden expenses that you’ll have to consider.

Louisville taxes can throw off some new residents, as the state of Kentucky imposes a 5% income tax on the state level.

In addition to the state-live income tax, the city of Louisville levies an income tax (occupational tax) for those employees who work within the Louisville metro jurisdiction.

Employees who live and work within the Louisville Metro area must pay a 2.2% income tax, while employees who work within the Louisville Metro area but live outside the Louisville Metro area, must pay a 1.45% income tax.

Louisville residents can expect to pay a 6% sales tax rate, which is lower than many other states.

What Salary Do I Need to Live in Louisville?

Currently, the living wage in Louisville is $16.17 an hour, which accounts for the necessities. This figure doesn't factor in travel, emergencies, or any extras in your budget. However, according to the U.S. Census Bureau, the median household income in Louisville is $56,635 or about $27.71 an hour.

If you’re budgeting and want to know how much you should earn to live in Louisville, we recommend following the 30% budgeting rule.

This budgeting rule suggests that 30% of your income (and no more than that!), should be used to cover housing costs. If you spend even less than that, you’re golden!

That said, this rule is a guideline, not a universally accepted standard. Most landlords just want to see that your pre-tax income meets or exceeds three times your monthly rent. To afford a one-bedroom apartment in Louisville at $836, you need $33,440 to live comfortably. To live in a two-bedroom apartment in Louisville at $1,042, you need $41,680 to comfortably afford your rent.

As you can see, the numbers are very different. The 30% rule is more conservative and is great for those who want to ensure that they have more than enough to cover their housing costs

That said, you don’t have to use a specific rule to determine how much you can afford. Use our rent calculator or set your rent upper limit based on your financial circumstances.

Final Thoughts

If you’ve found the affordable, mid-sized Midwestern city you’ve been looking for in Louisville, we’ve got you covered as you begin your apartment search.

Get started with Apartment List to help you find your dream Louisville apartment.

FAQs: Cost of Living in Louisville

How expensive is an apartment in Louisville?

Louisville rents are increasing. A one bedroom apartment in Louisville costs $836 a month. A two bedroom apartment in Louisville cost $1,042 a month.

What is the cheapest rent in Louisville?

Currently, the cheapest rent in Louisville is for a one-bedroom apartment. You can expect to pay an average of $836 a month in rent.

How expensive is it to live in Louisville?

In Louisville, the rent averages $836 per month for a one-bedroom apartment. Transportation costs $5,477 a year for a single adult. Food costs about $3,926 a year in Louisville for meals and snacks. Eating out will cost $15 for an inexpensive meal, and $60 for a three-course dinner for two.

How far is Louisville from Nashville?

Louisville to Nashville is 175.6 miles via I-65 N. It takes around two hours and thirty-six minutes from Louisville to Nashville. It takes about three hours and nine minutes to take Greyhound from Louisville to Nashville.

What is the population of Louisville?

According to the U.S. Census Bureau, the population of Louisville was 246,161 in 2020. The entire population of the state of Kentucky is 4,505,836.

What is a good salary in Louisville?

The U.S. Census Bureau reports that the average salary for Louisville residents is $56,635 or $27.71 an hour. The living wage in the greater Louisville area is $16.07 an hour. However, to stick to the rule of spending only 30% of your monthly income on rent, you only need an income of $33,440 to live comfortably in a one bedroom apartment in Louisville.