Factor in financing to see your actual return on invested capital in Mount Sterling.
$
$47,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.47%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$53,200
$47,500 down + $5,700 closing
Monthly Mortgage
$929
on $143K loan
Monthly Cash Flow
$-198
after all expenses
Annual Cash Flow
$-2,376
before taxes
Cash Flow Breakdown
Monthly Rent$1,260
Less Expenses−$529
Less Mortgage−$929
Monthly Cash Flow$-198
Is Mount Sterling a Good Place to Invest in Rental Property?
Mount Sterling, 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 $190,000 paired with median rents of $1,260/mo produces an estimated cap rate of 5.90%.
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 3.7x, homes cost about 3.7 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: Mount Sterling presents moderate opportunities. Cap rates near 5.90% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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