Updated 2026 · Based on median market data for Mount Sterling, KY
The median monthly rent in Mount Sterling, KY is $1,260, translating to $15,120 in annual gross rental income per unit. The rent-to-price ratio is 0.66% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Mount Sterling spend approximately 29% of the local median household income ($51,300) 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 Mount Sterling is 5.6%. 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 0.8% annually provides stable demand.
Mount Sterling's GRM (price divided by annual rent) is 12.6x. 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 $1,260/mo, a single-family rental in Mount Sterling generates approximately $15,120 in gross annual income. After accounting for 5.6% vacancy ($847 lost), property taxes of $1,539, insurance (~$760), and maintenance (~$760), the estimated NOI is $11,214 per year, or $935/mo.
Mount Sterling vs Kentucky state average and national average across key investment metrics. Mount Sterling outperforms both benchmarks on cap rate.