Is it cheaper to live in Frederick or Lexington?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 35% below Frederick, MD's $1,640, mainly because of rent.

How much more do you need to earn to live in Frederick than in Lexington?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $57,000 a year in Frederick versus $35,000 in Lexington.

Which has lower taxes, Frederick or Lexington?

Frederick is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Lexington under Kentucky's (a top state income tax rate of 3.50% and a 6% state sales tax).

Frederick vs Lexington Cost of Living 2026

Frederick

Maryland

$1,640/mo est.

Lexington

Kentucky

$1,070/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,640 in Frederick, MD versus $1,070 in Lexington, KY. Overall, Lexington, KY is roughly 35% cheaper to live in day-to-day than Frederick, MD, driven mainly by rent.

Median household income is $95,150 in Frederick, MD and $67,631 in Lexington, KY — about 29% higher in Frederick, MD. Maryland has a top state income tax rate of 6.50% and a 6% state sales tax; Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax.

Frederick, MD

Lexington, KY

Rent

Studio

$1,658

$769

+54% in Frederick, MD

1 Bedroom

$1,418

$887

+37% in Frederick, MD

2 Bedroom

$1,661

$1,119

+33% in Frederick, MD

3 Bedroom

$1,863

$1,408

+24% in Frederick, MD

Buying a Home

Median Home Value

$365,200

$272,100

+25% in Frederick, MD

Income

Median Household Income

$95,150

$67,631

+29% in Frederick, MD

Metro Median Wage (annual)

$71,060

$48,620

+32% in Frederick, MD

People & Lifestyle

Median Age

37.1 yr

35.2 yr

+1.9 yr in Frederick, MD

Homeownership

59.2%

53.6%

+5.6 pp in Frederick, MD

Bachelor's+ (25+)

41.8%

47.3%

+5.5 pp in Lexington, KY

Avg Commute

30.1 min

20.8 min

+9.3 min in Frederick, MD

Crime (per 100k/yr)

Violent Crime

406

269.1

+34% in Frederick, MD

Property Crime

1,696.3

2,304.4

+36% in Lexington, KY

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

52.1°F

55.6°F

+3.5°F in Lexington, KY

Annual Precipitation

—

45.2 in

Gas

Regular Gasoline

$3.86/gal

$3.94/gal

+2% in Lexington, KY

Area: East Coast (PADD 1) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

21.8

15.0

+31% in Frederick, MD

Natural Gas ($/MCF)

$18.94

$29.48

+56% in Lexington, KY

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.00

about equal

Bread (lb)

$1.75

about equal

Eggs (doz)

$2.21

about equal

Ground Beef (lb)

$6.45

about equal

Chicken (lb)

$1.90

about equal

Bananas (lb)

$0.62

about equal

Average prices — South vs South (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (MD / KY)

about equal

Income Tax (top rate)

6.50%

3.50%

+3.0 pp in MD

Frederick vs Lexington — FAQ

Is it cheaper to live in Frederick or Lexington?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 35% below Frederick, MD's $1,640, mainly because of rent.
How much more do you need to earn to live in Frederick than in Lexington?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $57,000 a year in Frederick versus $35,000 in Lexington.
Which has lower taxes, Frederick or Lexington?: Frederick is taxed under Maryland's rules (a top state income tax rate of 6.50% and a 6% state sales tax); Lexington under Kentucky's (a top state income tax rate of 3.50% and a 6% state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).