Lancaster is a very small city located in the state of Kentucky. With a population of 4,010 people and five associated neighborhoods, Lancaster is the 106th largest community in Kentucky.

One interesting thing about the economy is that relatively large numbers of people worked from their home: 8.81% of the workforce. While this number may seem small overall, as a fraction of the total workforce this is high compared to the rest of the county. These workers are often telecommuters who work in knowledge-based, white-collar professions. For example, Silicon Valley has large numbers of people who telecommute. Other at-home workers may be self-employed people who operate small businesses out of their homes.

Being a small city, Lancaster does not have a public transit system used by locals to get to and from work.

The percentage of people in Lancaster with college degrees is quite a bit lower than the national average for cities and towns of 21.84%: just 10.95% of people over 25 have a bachelor's degree or advanced degree.

The per capita income in Lancaster in 2018 was $25,076, which is middle income relative to Kentucky, and lower middle income relative to the rest of the US. This equates to an annual income of $100,304 for a family of four. However, Lancaster contains both very wealthy and poor people as well.

Lancaster is a somewhat ethnically-diverse city. The people who call Lancaster home describe themselves as belonging to a variety of racial and ethnic groups. The greatest number of Lancaster residents report their race to be White, followed by Black or African-American. Important ancestries of people in Lancaster include English, German, Irish, European, and Scots-Irish.

The most common language spoken in Lancaster is English. Other important languages spoken here include Spanish and Polish.