Median one-bedroom rent across the cities we track is $870 in Iowa versus $877 in Kentucky. Overall, Iowa runs roughly 1% cheaper on rent than Kentucky, its main day-to-day cost driver.
Median household income across tracked cities is $63,966 in Iowa and $64,731 in Kentucky — about 1% higher in Kentucky. Iowa has a top state income tax rate of 3.80% and a 6% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.
State Taxes
Sales Tax
6%
6%
about equal
Income Tax (top rate)
3.80%
3.50%
+0.3 pp in Iowa
Housing (median across tracked cities)
Median 1BR Rent
$870
$877
+1% in Kentucky
Median Home Value
$183,700
$232,100
+26% in Kentucky
Income (median across tracked cities)
Median Household Income
$63,966
$64,731
+1% in Kentucky
Climate (median across tracked cities)
Avg Annual Temperature
50.9°F
58.0°F
+7.1°F in Kentucky
Iowa vs Kentucky — FAQ
- Is it cheaper to live in Iowa or Kentucky?
- Iowa is cheaper on rent — its median one-bedroom of $870 runs about 1% below Kentucky's $877, based on the cities we track in each state.
- How much more do you need to earn to live in Iowa than in Kentucky?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $35,000 a year in Iowa versus $35,000 in Kentucky.
- Which has lower taxes, Iowa or Kentucky?
- Iowa has a top state income tax rate of 3.80% and a 6% state sales tax. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.
Housing, income, and climate are medians across the 1/3 cities we track in Iowa/Kentucky — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.