Updated 2026 · Based on median market data for Louisville, KY
The median monthly rent in Louisville, KY is $1,220, translating to $14,640 in annual gross rental income per unit. The rent-to-price ratio is 0.53% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Louisville spend approximately 26% of the local median household income ($55,800) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.
The vacancy rate in Louisville is 5.8%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.6% annually provides stable demand.
Louisville's GRM (price divided by annual rent) is 15.7x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,220/mo, a single-family rental in Louisville generates approximately $14,640 in gross annual income. After accounting for 5.8% vacancy ($849 lost), property taxes of $1,909, insurance (~$920), and maintenance (~$920), the estimated NOI is $10,042 per year, or $837/mo.