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Lexington vs Owensboro for Rental Property Investing

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

Lexington wins 4–3 across key metrics
Owensboro leads on cash flow (4.95% vs 4.08% cap rate) · Lexington leads on population growth
Metric
Lexington, KY
Owensboro, KY
Est. Cap Rate
4.08%
4.95%
Median Home Price
$260,000
$175,000
Median Monthly Rent
$1,300
$1,020
1% Rule
0.50%
0.58%
GRM
16.7x
14.3x
Price / Income
4.5x
3.9x
Property Tax Rate
0.81%
0.82%
Vacancy Rate
5.2%
6%
Population Growth
0.9% / yr
0.4% / yr
Annual Appreciation
3.1%
2.3%
Population
325,000
62,000
Median Income
$58,400
$44,800

Lexington vs Owensboro: Which Is Better for Investors?

Cash flow: Owensboro has the edge with an estimated cap rate of 4.95% 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 $175,000 in Owensboro, while rents come in at $1,300/mo and $1,020/mo respectively.

Growth & appreciation: Lexington is growing faster at 0.9% annually vs Owensboro's 0.4%. Lexington leads on home value appreciation at 3.1% per year.

Costs & risk: Property taxes are 0.81% in Lexington vs 0.82% in Owensboro. Vacancy rates of 5.2% and 6% are mixed — Lexington has the tighter rental market.

Bottom line: Lexington edges out Owensboro on most key metrics. While cap rates are moderate at 4.08%, Lexington's overall profile is stronger. Use our free calculators to model specific deals in Lexington or Owensboro.

Lexington, KY
4.08% cap rate · $260,000 median · $1,300/mo
Full analysis →
Owensboro, KY
4.95% cap rate · $175,000 median · $1,020/mo
Full analysis →
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