What's a good cap rate in Louisville?

In Louisville, cap rates typically run around 8.5% (Kentucky state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Louisville deal lands versus this benchmark.

What's the average rent for a rental in Louisville?

A typical rental in Louisville runs about $1,272–$1,625/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Kentucky?

Kentucky's effective property tax rate is about 0.83% of value per year — the figure TrueCap applies by default for Louisville deals. You can override it with the exact local rate.

Louisville, KY

Louisville rental property analysis

Louisville is a stable, affordable cash-flow market anchored by logistics (UPS Worldport) and healthcare — steady demand, low volatility, easy entry.

Louisville market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

8.5%

Kentucky state median

Typical rent

$1,272–$1,625/mo

HUD FMR · 2–3BR · 2026

Typical price

$160,000–$250,000

est., all-in

Property tax

0.83%

Kentucky effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Louisville a good place to buy rentals?

A dependable first or second market: prices stay reasonable, the economy is recession-resistant, and B-class SFRs rent quickly. Appreciation is modest but reliable.

See the full Kentuckyinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Louisville

Germantown

Walkable, popular with renters, steady appreciation.

Okolona

Affordable SFRs near logistics jobs, low vacancy.

Shively

Strong cash flow, value-add stock, working-tenant base.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Louisville deal in 60 seconds

Paste a Louisville address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Kentucky tax and HUD rent so you start from the right assumptions.

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