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Kentucky

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Kentucky

Lexington-Fayette

Nearest city: Lexington
Population: 272,470
Median household income: $68,857

Lexington, home to the University of Kentucky, is known as the "horse capital of the world." But there's more to Lexington than its horse parks and race courses. Lexington has ballets, orchestras, and museums, and a highly educated populace.

Runners-up:
Louisville
Owensboro

Click here to see the 2010 version of the Best Places to Raise Your Kids