Factor in financing to see your actual return on invested capital in Frankfort.
$
$61,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.39%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
$-537
after all expenses
Annual Cash Flow
$-6,443
before taxes
Cash Flow Breakdown
Monthly Rent$1,140
Less Expenses−$479
Less Mortgage−$1,198
Monthly Cash Flow$-537
Is Frankfort a Good Place to Invest in Rental Property?
Frankfort, 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 $1,140/mo produces an estimated cap rate of 3.66%.
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: At current median prices, Frankfort is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.
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