Lancaster is a very small city located in the state of Kentucky. With a population of 4,083 people and five associated neighborhoods, Lancaster is the 106th largest community in Kentucky.

A relatively large number of people in Lancaster telecommute to their jobs. Overall, about 8.99% of the workforce works from home. While this may seem like a small number, as a fraction of the total workforce it ranks among the highest in the country. 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 citizens of Lancaster are slightly less educated than the national average of 21.84% for the average city or town: 13.23% of adults in Lancaster have a bachelor's degree or advanced degree

The per capita income in Lancaster in 2022 was $23,631, which is lower middle income relative to Kentucky, and low income relative to the rest of the US. This equates to an annual income of $94,524 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, Irish, European, German, and Scottish.

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