Department of Numbers

This section of Department of Numbers is no longer being updated and may be removed in the future. The data here is out of date and should no longer be used.

Kentucky Home Affordability

The data below quantifies Kentucky home affordability by using home prices and home price indices to calculate price-to-income and price-to-rent ratios.1 The maximum affordable loan amount for the median household income is also calculated. You can also compare Kentucky home affordability to other states.

Kentucky Home Price-to-Income Ratios

The home price-to-income ratio for Kentucky comes from the Federal Housing Finance Agency's relatively new state median price series and their purchase only index combined with Kentucky annual median household income data. The FHFA home price series yields a dollar ratio (top chart) while the index results in an index ratio (bottom chart). Based on the latest FHFA state home prices in June 2010, the price-to-income ratio for Kentucky was 3.16.

Home Price-to-Income Dollar Ratio: FHFA

Chart of Kentucky home price-to-income ratio using FHFA median price

Home Price-to-Income Index Ratio: FHFA

Chart of Kentucky home price-to-income ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Kentucky Home Price-to-Income Ratio History

(Dollar Ratio)
(Index Ratio)
December 2013 117.3
September 2013 117.2
June 2013 115.6
March 2013 114.5
December 2012 113.9
September 2012 112.1
June 2012 113.1
March 2012 111.6
December 2011 113.1
September 2011 113.2

Kentucky Home Price-to-Rent Ratios

The price-to-rent ratio for Kentucky is determined for both the FHFA median price and the purchase only index by calculating a ratio with the median contract rent. The price-to-adjusted rent value takes into account CPS reported household size to attempt to correct for quality differences in renter and owner occupied homes. More on that process here. Again, the median price ratio is a dollar ratio and the HPI ratio is an index ratio defined to be 100 in Q1 2000. The adjusted price-to-rent ratio for Kentucky was 21.35 in June 2010.

Home Price-to-Rent Dollar Ratio: FHFA, FHFA Adjusted Rent

Chart of Kentucky home price-to-rent ratio using FHFA median price

Home Price-to-Rent Index Ratio: FHFA

Chart of Kentucky home price-to-rent ratio using FHFA HPI

Note: Index set to 100 in Q1 of 2000

Kentucky Home Price-to-Rent Ratio History

(Dollar Ratio)
FHFA Adjusted
(Dollar Ratio)
(Index Ratio)
December 2013 97.8
September 2013 97.7
June 2013 96.3
March 2013 95.4
December 2012 94.9
September 2012 93.4
June 2012 94.2
March 2012 93.0
December 2011 95.1

Kentucky Inferred Affordable Mortgage

The inferred affordable mortgage is determined by taking the median household income for Kentucky and calculating the mortgage 30% of that income could afford. Traditionally, 30% of income is the maximum amount a homeowner could use towards a home loan. Inferred affordable loan values are calculated from median household income and average monthly mortgage rates. The amounts are not adjusted for inflation.

Inferred Affordable Mortgage

Chart of Kentucky maximum affordable home loan amount

Kentucky Inferred Affordable Mortgage History

Date Inferred Mortgage
February 2014 $207,561
January 2014 $204,396
December 2013 $203,676
November 2013 $208,550
October 2013 $210,297
September 2013 $202,959
August 2013 $203,676
July 2013 $205,848
June 2013 $213,343
May 2013 $227,610
April 2013 $230,172
March 2013 $226,766
February 2013 $227,893

1. Specifically, Home prices are from the FHFA seasonally adjusted, purchase only quarterly series. Rent data is from the Census ACS and income is from the Census CPS. Rent and income data for the previous year is carried into the following year for calculations prior to release of new data.