Is it cheaper to live in Lexington or Salem?

Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 9% below Salem, OR's $1,170, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $40,000 in Salem.

Which has lower taxes, Lexington or Salem?

Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% and no state sales tax).

Lexington vs Salem Cost of Living 2026

Lexington

Kentucky

$1,070/mo est.

Salem

Oregon

$1,170/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,070 in Lexington, KY versus $1,170 in Salem, OR. Overall, Lexington, KY is roughly 9% cheaper to live in day-to-day than Salem, OR, driven mainly by rent.

Median household income is $67,631 in Lexington, KY and $71,900 in Salem, OR — about 6% higher in Salem, OR. Kentucky has a top state income tax rate of 3.50% and a 6% state sales tax; Oregon has a top state income tax rate of 9.90% and no state sales tax.

Lexington, KY

Salem, OR

Rent

Studio

$769

$1,075

+40% in Salem, OR

1 Bedroom

$887

$989

+11% in Salem, OR

2 Bedroom

$1,119

$1,337

+19% in Salem, OR

3 Bedroom

$1,408

$1,778

+26% in Salem, OR

Buying a Home

Median Home Value

$272,100

$382,400

+41% in Salem, OR

Income

Median Household Income

$67,631

$71,900

+6% in Salem, OR

Metro Median Wage (annual)

$48,620

$55,310

+14% in Salem, OR

People & Lifestyle

Median Age

35.2 yr

35.7 yr

+0.5 yr in Salem, OR

Homeownership

53.6%

55.7%

+2.1 pp in Salem, OR

Bachelor's+ (25+)

47.3%

31.4%

+15.9 pp in Lexington, KY

Avg Commute

20.8 min

22.4 min

+1.6 min in Salem, OR

Crime (per 100k/yr)

Violent Crime

269.1

540.6

+101% in Salem, OR

Property Crime

2,304.4

2,878.6

+25% in Salem, OR

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

53.0°F

+2.6°F in Lexington, KY

Annual Precipitation

45.2 in

39.7 in

+5.5 in in Lexington, KY

Gas

Regular Gasoline

$3.94/gal

$5.09/gal

+29% in Salem, OR

Area: Midwest (PADD 2) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

15.0

16.3

+9% in Salem, OR

Natural Gas ($/MCF)

$29.48

$20.59

+30% in Lexington, KY

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

Groceries

Milk (gal)

$4.00

$4.82

+20% in Salem, OR

Bread (lb)

$1.75

$2.04

+17% in Salem, OR

Eggs (doz)

$2.21

$2.19

+1% in Lexington, KY

Ground Beef (lb)

$6.45

$7.36

+14% in Salem, OR

Chicken (lb)

$1.90

$2.01

+6% in Salem, OR

Bananas (lb)

$0.62

$0.70

+14% in Salem, OR

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

State Taxes

Sales Tax (KY / OR)

None

+6.0 pp in KY

Income Tax (top rate)

3.50%

9.90%

+6.4 pp in OR

Lexington vs Salem — FAQ

Is it cheaper to live in Lexington or Salem?: Lexington, KY is cheaper. Its monthly baseline of $1,070 (1BR rent + utilities) runs about 9% below Salem, OR's $1,170, mainly because of rent.
How much more do you need to earn to live in Lexington than in Salem?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $35,000 a year in Lexington versus $40,000 in Salem.
Which has lower taxes, Lexington or Salem?: Lexington is taxed under Kentucky's rules (a top state income tax rate of 3.50% and a 6% state sales tax); Salem under Oregon's (a top state income tax rate of 9.90% 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).