Lancaster, KY
Population 3,960 · Kentucky
About Lancaster, KY
Lancaster is a small town located in Kentucky with a population of 3,960 residents according to the latest US Census Bureau American Community Survey data. The median household income is $45,795 per year, which is 39% below the national median of $75,149. The median age of 33.4 years is notably younger the US median age of 38.9 years, indicating a younger, often more dynamic population base.
Housing Market Overview
The housing market in Lancaster features a median home value of $134,700, which is 45% below the national median of $244,900. This makes Lancaster one of the more affordable markets in the country, potentially attractive for first-time homebuyers. Median monthly rent is $768, 34% below the national average of $1,163/month. Of the 1,624 total housing units, 52% are owner-occupied (761 units) and 48% are renter-occupied (716 units). The balanced mix of owners and renters indicates a diverse housing market.
Economy & Employment
The local economy in Lancaster shows an unemployment rate of 15.3%, which is significantly above the national rate of 3.7%, suggesting economic challenges in the area. The poverty rate stands at 25.1%, above the national average of 12.4%. Workers in Lancaster have an average one-way commute time of 29.1 minutes.
Education & Demographics
12.7% of Lancaster residents aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The lower educational attainment rate may reflect the area's industry mix, with more employment in trades, manufacturing, or agricultural sectors. The community's demographic composition includes 4.7% White, 0.7% Hispanic or Latino, 0.0% Black or African American, and 0.0% Asian residents, with 0.5% of the population being foreign-born.
Cost of Living in Lancaster, KY
Compared to national averages, Lancaster has a median household income of $45,795 (39% below the national median of $75,149). Home values average $134,700, which is 45% below the national median. Monthly rent at $768 is 34% below the US average of $1,163. Within Kentucky, Lancaster's income is 31% below the state average of $66,273, and home values are 26% below the state median of $182,504.
Why Live in Lancaster, KY?
Lancaster offers affordable housing with a median home value of $134,700, below the US average of $244,900, and rent that’s lower than the national average at $768/month.
Potential considerations include median household income ($45,795) that falls below the national average. However, Lancaster’s smaller community size offers a quieter lifestyle and tight-knit neighborhoods.
Lancaster has a population of 3,960 with a median age of 33.4 years. Compare Lancaster with other cities to see how it stacks up, or explore all cities in Kentucky.
Similar Cities Near Lancaster
Cities in Kentucky with a similar population size.
| City | Population | Median Income | Home Value | |
|---|---|---|---|---|
| Williamstown | 3,929 | $71,761 | $159,100 | Compare |
| Carrollton | 3,894 | $58,788 | $122,400 | Compare |
| Crittenden | 4,058 | $51,336 | $168,300 | Compare |
| Prestonsburg | 3,823 | $27,265 | $157,200 | Compare |
| Grayson | 3,820 | $28,548 | $125,600 | Compare |
| Buckner | 3,786 | $149,700 | $389,900 | Compare |
| Russell | 3,696 | $76,389 | $207,900 | Compare |
| Southgate | 3,680 | $55,469 | $175,700 | Compare |
Demographics
Racial & Ethnic Composition
Economy & Education
Housing
Other Cities in Kentucky
Data source: US Census Bureau ACS 5-Year Estimates. Last updated: 2026-04-05.
Compare Lancaster With Other Cities
Frequently Asked Questions about Lancaster
What is the population of Lancaster, KY?
The population of Lancaster, KY is 3,960 according to the latest US Census Bureau American Community Survey estimates. This makes it a small town in Kentucky.
What is the median household income in Lancaster?
The median household income in Lancaster, KY is $45,795 per year, which is 39% below the national median of $75,149.
What is the median home value in Lancaster?
The median home value in Lancaster, KY is $134,700, which is 45% below the national median of $244,900. The majority of housing units are owner-occupied.
What is the average rent in Lancaster?
The median monthly rent in Lancaster, KY is $768, which is 34% below the national average of $1,163/month.
What is the unemployment rate in Lancaster?
The unemployment rate in Lancaster, KY is 15.3%, compared to the national average of 3.7%. Job seekers may want to research the dominant industries in the area.
Is Lancaster, KY a good place to live?
Lancaster offers a moderate cost of living, affordable housing, and growing employment opportunities. With a population of 3,960 and a median age of 33.4, the city appeals to young professionals and families.
How educated is Lancaster, KY?
12.7% of residents in Lancaster aged 25 and older hold a bachelor's degree or higher, compared to the national average of 33.7%. The educational profile reflects the area's industry mix and employment landscape.
What is the cost of living in Lancaster?
Key cost-of-living indicators for Lancaster, KY: median home value is $134,700 (45% below national), median rent is $768/month, and median household income is $45,795. The home-value-to-income ratio is 2.9x, indicating relatively affordable housing relative to local incomes.
What is the poverty rate in Lancaster?
The poverty rate in Lancaster, KY is 25.1%, compared to the national average of 12.4%. Residents and prospective movers should be aware of the economic challenges facing parts of this community.
How diverse is Lancaster, KY?
Lancaster's population is 4.7% White, 0.7% Hispanic or Latino, 0.0% Black or African American, 0.0% Asian, and 8.1% two or more races. 0.5% of residents are foreign-born.