%
CapRateCity
Free cap rate calculators for every US market
MarketsKentuckyPaducah

Cap Rate Analysis: Paducah, KY

Investment metrics, interactive calculators, and data-driven analysis for Paducah rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Strong investment fundamentals
Based on $170,000 median price and $1,220/mo median rent
Est. Cap Rate
6.52%
1% Rule
0.72%
Fails
GRM
11.6x
Price / Income
3.3x

Market Data

Median Home Price$170,000
Median Monthly Rent$1,220
Property Tax Rate0.81%
Population50,000
Population Growth0.8% / yr
Median Household Income$51,300
Vacancy Rate5.6%
Annual Appreciation2.8%

Cap Rate Calculator — Paducah

Pre-filled with Paducah medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.81% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
5.36%Moderate
Net Operating Income ÷ Purchase Price
NOI / Year
$9,116
net operating income
Gross Rent Multiplier
11.6x
Good (<15)
1% Rule
0.72%
✗ Fails
Monthly Cash Flow
$760
before debt service
Annual Breakdown
Gross Rental Income$14,640
Less Vacancy−$820
Effective Income$13,820
Less Operating Expenses−$4,704
Net Operating Income$9,116
Sponsored
Analyze Deals Faster with DealCheck
Import any property, get instant investment analysis — cap rates, cash flow, rehab estimates, and offer calculations. Used by 350,000+ investors.
Try DealCheck Free →

Cash-on-Cash Return — Paducah

Factor in financing to see your actual return on invested capital in Paducah.

$
$42,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-3.11%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$47,600
$42,500 down + $5,100 closing
Monthly Mortgage
$831
on $128K loan
Monthly Cash Flow
$-123
after all expenses
Annual Cash Flow
$-1,478
before taxes
Cash Flow Breakdown
Monthly Rent$1,220
Less Expenses−$512
Less Mortgage−$831
Monthly Cash Flow$-123

Is Paducah a Good Place to Invest in Rental Property?

Paducah, 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 $170,000 paired with median rents of $1,220/mo produces an estimated cap rate of 6.52%.

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 3.3x, homes cost about 3.3 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: Paducah offers attractive fundamentals for rental investors. low taxes, and cap rates above 6% put it in the upper tier of investable markets.

Sponsored
Get AI-Powered Property Insights
Homesage.ai analyzes 140 million properties with AI — spot hidden deals, assess property condition, and find investment opportunities. Free to try.
Analyze Properties →

Paducah Investment Guides

Explore Paducah Data

Free Download
Top 25 Cash Flow Cities (2026)
See how Paducah compares to the best cash flow markets in America.
Get the Report →
Sponsored
Investor Gear
Google Nest Thermostat
Google
$130
FLIR ONE Gen 3 Thermal Camera
FLIR
$179
Schlage Connect Keypad Deadbolt
Schlage
$229
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.

Similar Markets in the South

Danville, VA$160K · $1,150/mo
6.5%
Tifton, GA$200K · $1,460/mo
6.5%
Clewiston, FL$275K · $1,990/mo
6.6%
Opelousas, LA$130K · $920/mo
6.6%
Florence, SC$185K · $1,300/mo
6.6%
Run a BRRRR analysis for Paducah
Model a buy-rehab-refinance deal with Paducah data pre-loaded.
Open BRRRR Calculator →