Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Kentucky and Vermont. Updated for 2026.
Kentucky wins 5 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $210K and lower overall costs, Kentucky offers meaningful savings compared to Vermont. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in Kentucky saves you approximately $1,379/month ($16,548/year) compared to Vermont, based on median home prices with identical loan terms.
Kentucky offers meaningfully lower home prices than Vermont, with median prices running 45% less ($170K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Vermont may find Kentucky far more accessible, particularly when combined with local down payment assistance programs.
Property taxes are dramatically different: Kentucky charges 0.83% while Vermont charges 1.9%, a gap of 1.07 percentage points. On the respective median homes, this means Vermont homeowners pay roughly $7,220 per year in property taxes versus $1,743 in Kentucky. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Insurance costs favor Vermont at $1,100/year versus $2,400/year in Kentucky, a difference of $1,300 annually. While not the largest cost factor, this adds up to over $13K over a decade of homeownership. Shop multiple carriers in either state — actual premiums depend on your specific property, coverage level, and claims history.
Closing costs are a one-time but significant expense. Vermont averages $6K in closing costs (1.6% of purchase price) while Kentucky averages $3K (1.4%). Much of Vermont's higher costs come from its 1.45% transfer tax, which adds $6K to the median home purchase. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Kentucky's KHC Regular DAP provides Up to $6,000 repayable loan, while Vermont's VHFA MOVE Mortgage offers $5K–$15K DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: Kentucky homes cost $170K less than Vermont on average. That translates to roughly $1,379 less per month in total housing costs if you choose Kentucky. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.