Is it cheaper to live in Lexington or Missoula?

Lexington, KY is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 2% below Missoula, MT's $1,100, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $38,000 in Missoula.

Which has lower taxes, Lexington or Missoula?

Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Missoula under Montana's (a top state income tax rate of 5.65% and no state sales tax).

Lexington vs Missoula Cost of Living 2026

Lexington

Kentucky

$1,080/mo est.

Missoula

Montana

$1,100/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,080 in Lexington, KY versus $1,100 in Missoula, MT. Overall, Lexington, KY is roughly 2% cheaper to live in day-to-day than Missoula, MT, driven mainly by rent.

Median household income is $67,631 in Lexington, KY and $65,329 in Missoula, MT — about 3% higher in Lexington, KY. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; Montana has a top state income tax rate of 5.65% and no state sales tax.

Lexington, KY

Missoula, MT

Rent

Studio

$769

$755

+2% in Lexington, KY

1 Bedroom

$887

$953

+7% in Missoula, MT

2 Bedroom

$1,119

$1,176

+5% in Missoula, MT

3 Bedroom

$1,408

$1,676

+19% in Missoula, MT

Buying a Home

Median Home Value

$272,100

$427,400

+57% in Missoula, MT

Income

Median Household Income

$67,631

$65,329

+3% in Lexington, KY

Metro Median Wage (annual)

$48,620

$47,830

+2% in Lexington, KY

People & Lifestyle

Median Age

35.2 yr

34.3 yr

+0.9 yr in Lexington, KY

Homeownership

53.6%

47.8%

+5.8 pp in Lexington, KY

Bachelor's+ (25+)

47.3%

51.7%

+4.4 pp in Missoula, MT

Avg Commute

20.8 min

16.6 min

+4.2 min in Lexington, KY

Crime (per 100k/yr)

Violent Crime

269.1

601.9

+124% in Missoula, MT

Property Crime

2,304.4

3,685.2

+60% in Missoula, MT

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

Climate

Avg Annual Temperature

55.6°F

45.9°F

+9.7°F in Lexington, KY

Annual Precipitation

45.2 in

14.1 in

+31.0 in in Lexington, KY

Gas

Regular Gasoline

$3.85/gal

$4.27/gal

+11% in Missoula, MT

Area: Midwest (PADD 2) vs Rocky Mountain (PADD 4).

Utilities

Electricity (¢/kWh)

14.3

15.1

+6% in Missoula, MT

Natural Gas ($/MCF)

$33.20

$10.12

+70% in Lexington, KY

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Missoula, MT

Bread (lb)

$1.75

$2.04

+17% in Missoula, MT

Eggs (doz)

$2.21

$2.19

+1% in Lexington, KY

Ground Beef (lb)

$6.45

$7.36

+14% in Missoula, MT

Chicken (lb)

$1.90

$2.01

+6% in Missoula, MT

Bananas (lb)

$0.62

$0.70

+14% in Missoula, MT

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

State Taxes

Sales Tax (KY / MT)

None

+6.0 pp in KY

Income Tax (top rate)

3.50%

5.65%

+2.2 pp in MT

Lexington vs Missoula — FAQ

Is it cheaper to live in Lexington or Missoula?: Lexington, KY is cheaper. Its monthly baseline of $1,080 (1BR rent + utilities) runs about 2% below Missoula, MT's $1,100, mainly because of rent.
How much more do you need to earn to live in Lexington than in Missoula?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $38,000 in Missoula.
Which has lower taxes, Lexington or Missoula?: Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Missoula under Montana's (a top state income tax rate of 5.65% and no 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).