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Lexington vs Bowling Green for Rental Property Investing

Side-by-side comparison of Lexington, KY and Bowling Green, KY — cap rates, rent, prices, and investment metrics.

Bowling Green wins 5–2 across key metrics
Bowling Green leads on cash flow (4.48% vs 4.08% cap rate)
Metric
Lexington, KY
Bowling Green, KY
Est. Cap Rate
4.08%
4.48%
Median Home Price
$260,000
$220,000
Median Monthly Rent
$1,300
$1,180
1% Rule
0.50%
0.54%
GRM
16.7x
15.5x
Price / Income
4.5x
4.8x
Property Tax Rate
0.81%
0.8%
Vacancy Rate
5.2%
5.5%
Population Growth
0.9% / yr
1.2% / yr
Annual Appreciation
3.1%
2.8%
Population
325,000
78,000
Median Income
$58,400
$46,200

Lexington vs Bowling Green: Which Is Better for Investors?

Cash flow: Bowling Green has the edge with an estimated cap rate of 4.48% compared to Lexington's 4.08%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $260,000 in Lexington vs $220,000 in Bowling Green, while rents come in at $1,300/mo and $1,180/mo respectively.

Growth & appreciation: Bowling Green is growing faster at 1.2% annually vs Lexington's 0.9%. Lexington leads on home value appreciation at 3.1% per year.

Costs & risk: Property taxes are 0.81% in Lexington vs 0.8% in Bowling Green. Vacancy rates of 5.2% and 5.5% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Bowling Green edges out Lexington on most key metrics. While cap rates are moderate at 4.48%, Bowling Green's overall profile is stronger. Use our free calculators to model specific deals in Lexington or Bowling Green.

Lexington, KY
4.08% cap rate · $260,000 median · $1,300/mo
Full analysis →
Bowling Green, KY
4.48% cap rate · $220,000 median · $1,180/mo
Full analysis →
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