Elizabethtown, KY Cap Rate: 4.12% — Rental Property Analysis
Elizabethtown is a budget-friendly market in the South with a small but investable metro of 50,000. At a 4.12% estimated cap rate, this is a moderate market where rents of $1,240/mo lag behind home prices. With a median home price of $245,000 and steady population growth supports long-term rental demand, Elizabethtown offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $245,000 median price and $1,240/mo median rent
Est. Cap Rate
4.12%
1% Rule
0.51%
Fails
GRM
16.5x
Price / Income
4.8x
Market Data
Median Home Price$245,000
Median Monthly Rent$1,240
Property Tax Rate0.81%
Population50,000
Population Growth0.8% / yr
Median Household Income$51,300
Vacancy Rate5.6%
Annual Appreciation2.8%
2026 Market Update: Elizabethtown
Elizabethtown's 0.5% rent-to-price ratio is well below the 1% rule. At median prices of $245,000, the $1,240/mo rent produces only $842/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($49K at 7%) would result in approximately $-461/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 16.5x gross rent multiplier and 5.6% vacancy rate position Elizabethtown as a balanced market. With annual appreciation at 2.8%, total returns (cash flow + equity growth) run approximately 6.9% before financing leverage.
Cap Rate Calculator — Elizabethtown
Pre-filled with Elizabethtown medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.81% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.43%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,407
net operating income
Gross Rent Multiplier
16.5x
High (>15)
1% Rule
0.51%
✗ Fails
Monthly Cash Flow
$701
before debt service
Annual Breakdown
Gross Rental Income$14,880
Less Vacancy−$833
Effective Income$14,047
Less Operating Expenses−$5,640
Net Operating Income$8,407
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Factor in financing to see your actual return on invested capital in Elizabethtown.
$
$61,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.38%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$68,600
$61,250 down + $7,350 closing
Monthly Mortgage
$1,198
on $184K loan
Monthly Cash Flow
$-479
after all expenses
Annual Cash Flow
$-5,747
before taxes
Cash Flow Breakdown
Monthly Rent$1,240
Less Expenses−$521
Less Mortgage−$1,198
Monthly Cash Flow$-479
Is Elizabethtown a Good Place to Invest in Rental Property?
Elizabethtown, 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 $245,000 paired with median rents of $1,240/mo produces an estimated cap rate of 4.12%.
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 4.8x, homes cost about 4.8 times the local median income of $51,300. This moderate ratio indicates a balanced rent-vs-buy market. 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: Elizabethtown presents moderate opportunities. Cap rates near 4.12% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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