The Georgetown, KY Financial Bleed Report (2026)

The real income required for a single person to live comfortably in Georgetown, Kentucky is $43,105 per year. This is the floor, not the ceiling. It assumes you are single, renting a modest apartment, and not drowning in consumer debt. If you are looking at the Cost of Living Index of 93.1, you might think you’ve found a bargain compared to the national average of 100. You haven’t. That number is a blunt instrument that averages out the cheap with the expensive, masking the specific financial traps this market sets for the unwary. "Comfortable" here means you can cover your bills, save a little, and maybe afford a beer on Friday without checking your bank balance, but it requires strict budgeting against the rising tide of housing and insurance costs. It is a baseline that leaves zero room for major errors.

The Big Items

Housing: The housing market in Georgetown is currently a pressure cooker, specifically for anyone trying to transition from renting to owning. With the median home price sitting at $296,750, the barrier to entry is significant. If you are coming from a high-cost area, this looks like a steal, but for locals earning the median, it is a steep climb. The rent vs. buy calculation is tilting dangerously toward renting right now, not because renting is cheap (data is unavailable but regional trends suggest a tight market), but because the hidden costs of homeownership are aggressively eating into the "bang for your buck." The market heat is driven by the proximity to Lexington and the manufacturing sector, keeping demand high and inventory tight. Buying at this median price point with current interest rates creates a monthly nut that requires a household income well above the single-earner median, effectively locking many out of ownership unless they have a dual-income household. It is a trap for the unprepared; the "sticker shock" of the down payment is only the beginning.

Taxes: You do not escape the taxman in Kentucky, and the bite is sharper than the raw index suggests. Kentucky has a flat state income tax rate of 4.5%, which hit the books recently. There is no "local" income tax in Georgetown specifically, but the state rate applies to every dollar you earn. The real financial bleed, however, comes from property taxes. While Kentucky’s property tax rates are technically low (around 0.83% of assessed value), the assessed value on a median $296,750 home results in a bill that is nothing to sneeze at. You are looking at roughly $2,400 a year just for the privilege of owning the land, before you pay a dime toward your mortgage principal. If you are renting, you are paying this cost indirectly; landlords pass it down. The tax environment here is structured to favor agriculture and business over the average wage earner, meaning you feel the 4.5% income cut on every paycheck while watching property values rise, pushing your long-term tax liability higher.

Groceries & Gas: The cost to fuel your body and your car shows the most variance against the national baseline. Groceries in Georgetown run about 8% lower than the national average. You will notice this at the checkout counter, but it’s not a massive windfall; it’s a slight buffer against the higher costs elsewhere. Gas, however, is where the local variance bites. You are looking at prices that fluctuate wildly but generally track slightly below or at the national average, currently hovering around $3.00 - $3.15 per gallon. The "local variance" is the killer: because Georgetown is a commuter hub for Lexington, you are burning more fuel than a pure city dweller. The 12.79 cents per kWh electric rate is actually decent compared to national spikes, but it’s a cold comfort when you are driving 30 miles a day for work. The savings on a dozen eggs are effectively canceled out by the gas tank required to get to the job that buys the eggs.

Hidden 'Gotcha' Costs

Do not underestimate the hidden "gotcha" costs in Georgetown; they will nickel and dime you to death if you aren't paying attention. First and foremost is insurance. While car insurance rates are moderate, you need to scrutinize your homeowner’s or renter’s policy. This region is prone to severe storms and flooding. Standard policies often exclude flood damage, requiring a separate flood insurance policy that can easily add $500 to $1,200 annually to your overhead. If you buy a home in a subdivision, HOA fees are common and can range from $50 to $200 monthly. These are mandatory fees for amenities you may never use, and they rarely decrease. Unlike major metros, there are no toll roads to speak of, but the city aggressively monetizes parking in the downtown corridor. If you work or socialize there, expect to pay $1.50 to $2.00 per hour for street parking, which adds up fast. There is also the "convenience tax"—the lack of competition in certain sectors means local service providers (mechanics, contractors) can charge a premium simply because there are fewer alternatives.

Lifestyle Inflation

Lifestyle inflation in Georgetown is subtle but effective. It starts with a coffee and ends with a drained savings account. A decent cup of coffee at a local spot will run you $4.50 to $5.50. A casual dinner for two at a mid-range restaurant, excluding alcohol, is easily $60 to $80. If you add drinks, you are pushing $100+. The "night out" tax is real; the limited entertainment options mean the popular spots can charge cover charges of $10 to $20 on weekends. Gym memberships are competitive, with basic chains running $30 to $50 per month, but boutique fitness studios are creeping up toward $100+. The danger here is that the cost of living feels low, so you loosen the purse strings. You buy the extra round, you upgrade the dinner, you impulse buy at the local boutiques. Before you know it, your spending has inflated to match the lifestyle of a city with ten times the salary potential. This is the psychological trap: because the rent isn't New York City prices, you think you are rich, but your bank account tells a different story.

Salary Scenarios

The following table outlines three distinct financial lifestyles for Georgetown. Note that "Family Income" assumes two earners to achieve the household stability required for the "Comfortable" tier.

Frugal Scenario ($32,000 Single / $64,000 Family)

This is survival mode. At $32,000 as a single earner, you are likely living with roommates or in a substandard 1BR apartment. You are cooking every meal at home and driving a paid-off, older vehicle. You are contributing the bare minimum to a 401k, if anything. A single earner at this level is one blown transmission or medical emergency away from financial ruin. For a family earning $64,000, life is a constant exercise in budgeting. You are likely in a starter home or a cheaper rental on the outskirts. You are shopping sales, using coupons, and probably relying on public schools exclusively because private tuition is impossible. There is zero margin for error here.

Moderate Scenario ($43,105 Single / $86,210 Family)

This is the baseline for "living" rather than just surviving. A single earner at $43,105 can afford a 1BR apartment (likely spending $950-$1,100 on rent) or a modest mortgage on a condo. You can afford to go out once a week, maintain a modest emergency fund, and drive a reliable used car. You are not saving aggressively, but you are not going backward. For a family at $86,210, life stabilizes. You can afford a median home ($296,750), though it will be a stretch. You can fund extracurriculars for kids and take a modest vacation once a year. This is the true middle-class Georgetown experience.

Comfortable Scenario ($65,000 Single / $130,000 Family)

At $65,000 single income, you are winning. You can afford a nice 2BR apartment or buy a home without being house-poor. You have a fully funded emergency fund, max out a Roth IRA, and drive a newer vehicle with a warranty. You don't stress about the grocery bill or a surprise $1,000 insurance deductible. For a family at $130,000, you are in the top tier locally. You can afford a nice home in a good school district with a garage, a reliable newer car (or two), and save significantly for college. You can absorb the $200 HOA fee and the $1,000 flood insurance premium without altering your lifestyle. This is the level where you actually feel wealthy in this market.