Detroit vs Lexington: Cost of Living Comparison
How does the cost of living in Detroit, Michigan compare to Lexington, Kentucky? Below is a side-by-side breakdown of housing costs, income, wages, and taxes using official government data.
Summary: Detroit is the more affordable city overall. Housing costs are 73% lower in Detroit compared to Lexington, while rent is 7% lower. State income tax is 4.25% in MI vs 4% in KY.
| Metric | Detroit, MI | Lexington, KY | Diff |
|---|---|---|---|
| Housing | |||
| Median Home Value | $66,700 | $247,900 | -73.1% |
| Median Monthly Rent | $989 | $1,065 | -7.1% |
| Income | |||
| Median Household Income | $37,761 | $66,087 | -42.9% |
| Per Capita Income | $22,861 | $40,953 | -44.2% |
| Taxes | |||
| State Income Tax Rate | 4.3% | 4.0% | +6.3% |
| Combined Sales Tax | 6.0% | 6.0% | same |
| Demographics | |||
| Population | 636,787 | 321,276 | +98.2% |
Source: U.S. Census Bureau ACS 5-Year Estimates (2022), Freddie Mac Primary Mortgage Market Survey. State/local tax rates from Tax Foundation (2024).
Rent vs. Buy Calculator — Detroit
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Rent vs. Buy Calculator — Lexington
Default home price from Census ACS median. Mortgage rate: 6.38% (Freddie Mac PMMS, March 2026). Property tax est. 1.1%, insurance est. 0.35% of home value annually.
Key Takeaways
- Housing: The median home in Detroit costs $66,700 compared to $247,900 in Lexington — a 73% discount.
- Rent: Median rent is $989/mo in Detroit vs $1,065/mo in Lexington.
- Income: Median household income is $37,761 in Detroit and $66,087 in Lexington.
- Taxes: State income tax is 4.25% in Michigan vs 4% in Kentucky.
Methodology
This comparison uses data from the U.S. Census Bureau American Community Survey 5-Year Estimates (2022) for median household income, median home value, median gross rent, per capita income, and population. State and local tax rates are sourced from the Tax Foundation. Mortgage rates are from the Freddie Mac Primary Mortgage Market Survey (updated weekly).