Factor in financing to see your actual return on invested capital in Danville.
$
$52,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.10%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$58,800
$52,500 down + $6,300 closing
Monthly Mortgage
$1,027
on $158K loan
Monthly Cash Flow
$-348
after all expenses
Annual Cash Flow
$-4,173
before taxes
Cash Flow Breakdown
Monthly Rent$1,170
Less Expenses−$491
Less Mortgage−$1,027
Monthly Cash Flow$-348
Is Danville a Good Place to Invest in Rental Property?
Danville, KY has a population of 50,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $210,000 paired with median rents of $1,170/mo produces an estimated cap rate of 4.70%.
Property taxes at 0.81% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.1x, homes cost about 4.1 times the local median income of $51,300. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.8% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Danville presents moderate opportunities. Cap rates near 4.70% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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