Updated 2026 · Based on median market data for London, KY
London sits in the South with a population of 50,000 growing at 0.8% annually. The median home costs $155,000 while rents average $1,130/mo, producing an estimated cap rate of 6.65%. This puts London in the upper tier of investable US markets.
London is ideal for cash flow investors, BRRRR practitioners, and anyone building a portfolio of affordable, income-producing rentals. The low price point ($155,000) means you can get started with a $31,000 down payment, and the 6.65% cap rate should produce positive cash flow even with conservative financing.
Target properties priced 15-25% below the $155,000 median — around $124,000 or less. At this price point with $1,130/mo rents, your cap rate improves to roughly 8.7%. Factor in 0.81% property taxes ($1,256/yr), budget 5% of gross rent for maintenance, and underwrite to a 5.6% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $1,029.
Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.
Run the numbers on a specific London property using our cap rate calculator (pre-filled with London data). Compare London against similar markets in the South region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.
London vs Kentucky state average and national average across key investment metrics. London outperforms both benchmarks on cap rate.