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.

Telecommuters are a relatively large percentage of the workforce: 8.81% of people work from home. While this number may seem small overall, as a fraction of the total workforce it is high relative to the nation. 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.

In Lancaster, just 10.95% of people have at least a bachelor's degree, which is quite a bit lower than the national average for cities and towns of 21.84%.

The per capita income in Lancaster in 2022 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.