Cash Flow Investing in Louisville, KY
Data-driven cash flow analysis for Louisville, KY — score breakdown, key investment metrics, and how it compares to other markets.
Last updated: May 2026
Score Breakdown
Key Metrics for Cash Flow
Cap Rate
7.3%
Good
Rent-to-Price
0.67%
Below 1% rule
Vacancy Rate
8.0%
Healthy
Property Tax
0.83%
Very low
Cash Flow Investment Thesis
Louisville combines Midwest affordability with Southern growth dynamics. Low property taxes and a diversified economy (healthcare, logistics, bourbon tourism) make it a reliable rental market.
How Louisville Compares
| Rank | City | Cash Flow Score | Cap Rate | Median Price |
|---|---|---|---|---|
| #8 | Huntsville, AL | 5.4 | 7.1% | $260,000 |
| #9 | Indianapolis, IN | 5.3 | 8.1% | $175,000 |
| #10 | Tulsa, OK | 5.2 | 7.9% | $155,000 |
| #11 | Louisville, KY | 5.2 | 7.3% | $195,000 |
| #12 | Oklahoma City, OK | 5.0 | 7.7% | $175,000 |
| #13 | Little Rock, AR | 4.9 | 8.3% | $150,000 |
| #14 | Des Moines, IA | 4.9 | 6.6% | $200,000 |
Showing markets ranked near Louisville for this strategy.
Quick Math: Estimated Annual Return
Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.
Frequently Asked Questions
What is the cash flow score for Louisville, KY?
Louisville, KY scores 5.2 out of 10 on our cash flow score, ranking #11 out of 52 markets we track. Weighted composite: rent-to-price ratio (30%), cap rate (30%), low vacancy (20%), low property taxes (20%). Scale 0–10.
Is Louisville a good city for cash flow investing?
Louisville, KY ranks #11 for cash flow investing — a solid mid-tier market with a score of 5.2/10. The median home price is $195,000 with a 7.3% average cap rate.
What is the average cap rate in Louisville?
The average cap rate in Louisville, KY is 7.3%. The median home price is $195,000 with a median monthly rent of $1,300, resulting in a rent-to-price ratio of 0.67%.
What are the property taxes in Louisville?
The effective property tax rate in Louisville, KY is 0.83%. On a $195,000 property, that translates to approximately $1,619 per year in property taxes.
How does Louisville compare to other cash flow markets?
Among our 52 tracked markets, Louisville, KY ranks #11 for cash flow investing. It performs above average for this strategy.
Does Louisville meet the 1% rule?
Louisville, KY has a rent-to-price ratio of 0.67%, which falls significantly below the 1% rule. However, the 1% rule is a rough guideline — individual deals can still cash flow well in this market.
Run Your Own Numbers for Louisville
Use our free calculators pre-filled with Louisville, KY market data, or adjust the numbers for your specific deal.
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