A Palomino horse can cost you between U.S. dollars 3,000 to 15,000. The expenses of keeping a horse (insurance, food, etc.) can cost about US$ 15,000 a year. Moreover, if you are a beginner, it may be difficult for you to handle a Palomino as they are relatively more energetic and sensitive as compared to other horses. Chocolate Palomino Horse Genetics. The genetic composition of chocolate palominos consists of a chestnut base coat (ee) and a copy of the cream dilution gene (nCr). Horses that carry one copy of the dilution gene are identified as single dilutes. For example, a bay horse carrying a single copy of cream will be a buckskin, while a black horse. If you’re still not sure what a Palomino horse is, then here’s a detailed guide on that. Average Palomino Horse Cost. The average cost of a palomino horse may range between $5,000 to $10,000 and depends on several factors including the area where you live, the horse breed, the amount of training required, as well as its health status.