Updated 2026 · Based on median market data for Somerset, KY
The median monthly rent in Somerset, KY is $1,120, translating to $13,440 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 Somerset spend approximately 26% 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 Somerset 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.
Somerset'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 $1,120/mo, a single-family rental in Somerset generates approximately $13,440 in gross annual income. After accounting for 5.6% vacancy ($753 lost), property taxes of $1,377, insurance (~$680), and maintenance (~$680), the estimated NOI is $9,950 per year, or $829/mo.
Somerset vs Kentucky state average and national average across key investment metrics. Somerset outperforms both benchmarks on cap rate.