2025 Housing Costs in Versailles: Rent, Mortgage & More

The Housing Market in Versailles Today

The housing market in Versailles, Kentucky has seen steady growth in recent years. Inventory has tightened as demand for both rental properties and single-family homes continues to rise. New housing developments are popping up downtown and in the surrounding suburbs to meet the needs of a growing population.

Despite increasing costs, Versailles remains relatively affordable compared to larger cities in the region. The local economy is stable, with major employers in healthcare, education, and manufacturing providing job opportunities for residents. This economic context has helped keep housing prices from skyrocketing, even as demand grows.

Renting in Versailles: What’s Typical?

As of 2025, the average rent for a one-bedroom apartment in Versailles is around $950 per month. Two-bedroom units typically go for $1,200 or more, depending on location, amenities, and age of the property. Rent prices have risen gradually over the past few years, but availability remains decent, especially for those willing to look outside the most popular neighborhoods.

Young professionals and small families make up a significant portion of Versailles’ renter population. Popular areas for renters include the historic downtown district, with its charming shops and restaurants, as well as newer developments on the city’s north side that offer modern amenities like fitness centers and swimming pools.

It’s worth noting that many rental properties in Versailles include utilities like water, trash, and even internet service in the monthly rent. This can help keep costs manageable for tenants on a tight budget. Renters insurance is always a smart idea to protect personal belongings.

Owning a Home in Versailles

For those looking to buy, the median home price in Versailles currently sits around $225,000. With a 10% down payment and a 30-year fixed mortgage at 4% interest, that translates to a monthly payment of about $1,200 (including principal and interest). However, homeowners must also factor in additional costs like property taxes, homeowners insurance, and potentially HOA dues.

Property taxes in Woodford County, where Versailles is located, are relatively low compared to other parts of the country. Homeowners can expect to pay around $1,500 annually on a property assessed at $200,000. Insurance costs vary depending on the age and size of the home, but a typical policy might run $800-$1,200 per year.

Renters vs. Homeowners: Who Lives Where?

Versailles’ homeownership rate is approximately 65%, slightly higher than the national average. Many families and older residents prefer the stability and long-term investment potential of owning a home. However, financial barriers like saving for a down payment and qualifying for a mortgage can make homeownership difficult for some.

Younger residents and those with lower incomes are more likely to rent, at least initially. The flexibility and lower upfront costs of renting appeal to those still establishing careers or saving to buy a home. Some retirees also choose to rent to avoid the maintenance responsibilities that come with homeownership.

Culturally, there is a strong emphasis on homeownership in Versailles, as in much of the country. Many see it as a key part of the “American Dream” and a sign of financial success. However, changing economic realities and shifting lifestyle preferences have made renting a more attractive option for a growing number of residents.

Table: Typical Monthly Housing Costs in Versailles

Here’s what housing costs might look like each month in Versailles:

Estimates reflect mid-range properties and average usage.

What’s Driving Costs Up or Down?

Several factors influence housing costs in Versailles. On the demand side, the city’s growing population and strong job market are putting upward pressure on prices. More people are moving to the area for work, driving competition for available homes and apartments.

In terms of supply, Versailles has seen steady construction of new housing in recent years. However, zoning regulations and limited land availability downtown have somewhat constrained development. This has helped keep prices from dropping significantly, even as new units come online.

Policy decisions at the local and state level also play a role. Property tax rates, development incentives, and affordable housing initiatives can all impact the cost of living. In general, Versailles has maintained a balance between encouraging growth and preserving affordability.

FAQs About Housing in Versailles

Is Versailles affordable to live in?
Compared to many larger cities, Versailles is relatively affordable. Housing costs are lower than the national average, and residents benefit from a low cost of living overall. However, affordability ultimately depends on individual income and lifestyle.

Why are housing prices changing?
Housing prices in Versailles are influenced by supply and demand factors. Population growth and a strong economy are driving demand, while limited land availability downtown has constrained supply. New construction is helping to balance the market.

How does Versailles compare to nearby cities?
Versailles is more affordable than Lexington, the nearest large city, where median home prices and rents are significantly higher. However, it is slightly more expensive than some smaller towns in the surrounding area. Ultimately, Versailles offers a balance of affordability and access to amenities.

Making Smart Housing Decisions in Versailles

Housing is often the single largest expense in a household budget. As such, it’s important to weigh the costs and benefits of renting versus owning carefully. Renting offers flexibility and lower upfront costs, while owning can provide long-term stability and investment potential.

Factors like your income, savings, job security, and future plans should all inform your housing decision. It’s also wise to budget for the full cost of housing, including utilities, insurance, and maintenance, rather than just the rent or mortgage payment.

For a deeper dive into budgeting for housing costs, check out our guide on Monthly Budget Examples for Versailles Residents. And for a broader look at affordability in the city, see our Cost of Living in Versailles (2025 Guide).

Whether you choose to rent or buy, being informed about the local housing market and your own financial situation is key to making a smart decision. With careful planning and realistic expectations, you can find a home that fits your needs and budget in Versailles.