Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Alabama and Kentucky. Updated for 2026.
Metric
Alabama
Kentucky
Median Home Price
$230K
$210K
Property Tax Rate
0.41%
0.83%
Avg Closing Costs
$3K
$3K
Closing Cost %
1.4%
1.4%
Transfer Tax
None
0.1%
Homeowners Insurance
$1,950/yr
$2,400/yr
First-Time Buyer Program
Alabama Housing Finance Authority Step Up
Up to $10,000 DPA
KHC Regular DAP
Up to $6,000 repayable loan
Verdict
Alabama wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Kentucky has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.