Cannel City is an unincorporated community located in the U.S. state of Kentucky. It is within and the county seat of Morgan County on Route 191 south of the city of West Liberty. It coordinates at 37°47′24″N 83°16′27″W. The elevation is 892 feet above sea level. Estimated per capita income in 2016 was $16,985. It has Zip code 41408.