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Rental Investing in Louisville, KY

2026 Market Data & Investment Analysis

Gross Yield

6.9%

Annual rent / price

Median Home Price

$210,000

As of 2026-Q1

Median Monthly Rent

$1,200

Per month

Population

633,045

+0.3% / yr (5y avg)

Calculate Your Return in Louisville

Pre-filled with Louisville's median values. Adjust to match your specific property.

Property Details

$

Total acquisition cost before taxes

$
$

HOA, insurance, property management

%

% of time the property is empty

%

% of purchase price (e.g. 2% = 2)

% of price

Rule of thumb: 1% of purchase price/yr

Results

Gross Rental Yield

6.86%

Net Rental Yield

4.37%

Cap Rate

4.37%

Monthly Cash Flow

$765.00

Annual Cash Flow

$9,180.00

> 6% — Excellent4–6% — Good< 4% — Low

Market Overview

Median Home Price — 5-Year Trend

2021
$182,000
2022
$233,000
2023
$219,000
2024
$214,000
2025
$210,000

Median Monthly Rent — 5-Year Trend

2021
$1,030
2022
$1,170
2023
$1,200
2024
$1,202
2025
$1,200

Louisville provides solid rental yields of 6.9%, in line with healthy investment market benchmarks.

Modest population growth of 0.3% per year indicates a stable but slowly growing rental market.

The vacancy rate of 6.7% is healthy, indicating strong rental demand and limited downtime between tenants.

Investment Profile

Cash Flow Market

Louisville is a cash flow-focused market where high rental yields can generate strong monthly income. Lower population growth means price appreciation may be limited, making this primarily an income play.

✓ Strengths

  • •High gross yield of 6.9% supports strong monthly cash flow
  • •Lower entry prices relative to rents reduce upfront capital needed
  • •Income-driven returns are less dependent on market timing

! Risks

  • •Limited price appreciation potential reduces total return
  • •Modest population growth limits long-term demand growth

Key Metrics

Gross Yield6.9%
Median Home Price$210,000
Median Monthly Rent$1,200
Population Growth+0.3% / yr
Vacancy Rate6.7%

How Louisville Compares

Louisville vs Cincinnati: 0.4 percentage point difference in gross yield.

CityMedian PriceMedian RentGross YieldPop. Growth
Cincinnati, OH$220,000$1,2006.5%+0.3%
Indianapolis, IN$235,000$1,3006.6%+0.8%
Nashville, TN$420,000$1,7505%+1.3%
Columbus, OH$250,000$1,3506.5%+1.1%
Birmingham, AL$170,000$1,0507.4%-0.6%

Frequently Asked Questions

Is rental investing profitable in Louisville?▾
Yes, Louisville offers a gross rental yield of 6.9%, which is above the national average of around 5–6%. With a median home price of $210,000 and median monthly rent of $1,200, the numbers support profitable rental investing — though your specific results depend on financing terms, expenses, and property management.
What is the average rental yield in Louisville?▾
The average gross rental yield in Louisville is approximately 6.9%, based on a median home price of $210,000 and median monthly rent of $1,200 (as of 2026-Q1). Net yield, which accounts for vacancy, expenses, and maintenance, is typically 2–3 percentage points lower.
How does Louisville compare to Cincinnati for investors?▾
Louisville has a gross yield of 6.9% compared to 6.5% in Cincinnati, a difference of 0.4 percentage points. Louisville offers higher current income potential, making it more attractive for cash flow-focused investors.

Ready to Analyse a Specific Property in Louisville?

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Compare with nearby cities:

Cincinnati, OHIndianapolis, INNashville, TNColumbus, OH

Data source: Zillow Research / U.S. Census Bureau. Last updated: 2026-Q1. This information is for educational purposes only and does not constitute investment advice.