Best places to buy rental properties in Kentucky

January 24, 2022
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Investing in Kentucky

If you're looking for a place to invest in rental properties, you'll want to check out Kentucky. The state has a low cost of living, steady job growth, and a diverse economy in agriculture, manufacturing, and aerospace.

The Nophin team crunched the numbers and found the five best places to invest in Kentucky rental properties.

Statewide vacancy rates

KY Rental Vacancy Rate via Federal Reserve Bank of St. Louis

Louisville, KY

Louisville is the largest city in Kentucky and home to events like the Kentucky Derby and three Fortune 500 companies including Yum! Brands (Taco Bell, KFC), Kindred Healthcare, and Humana.

  • Population: 246,161
  • Median household income: $54,929
  • Median 1-bedroom monthly rent: $1,075
  • Median listing home price: $239,900

Lexington, KY

Lexington is considered the "horse capital of the world" with dozens of horse farms and training centers for thoroughbreds.

  • Population: 322,570
  • Median household income: $58,954
  • Median 1-bedroom monthly rent: $775
  • Median listing home price: $340,000

Bowling Green, KY

Bowling Green is a college town home to the Western Kentucky University and the Corvette.

  • Population: 72,294
  • Median household income: $42,044
  • Median 1-bedroom monthly rent: $825
  • Median listing home price: $279,900

Covington, KY

Sitting right across the river from Cincinnati, Covington is a historic city with a low cost of living.

  • Population: 40,961
  • Median household income: $46,035
  • Median 1-bedroom monthly rent: $1,295
  • Median listing home price: $189,900

Hopkinsville, KY

Hopkinsville is a small city in Southwestern Kentucky and is one of the largest producers of corn, tobacco, and soybeans.

  • Population: 31,180
  • Median household income: $39,743
  • Median 1-bedroom monthly rent: $690
  • Median listing home price: $195,000

Nophin is landlord banking and software for rental properties

With FDIC-insured bank accounts and cards that seamlessly integrate with easy-to-use software, Nophin helps landlords increase returns and automate rental property finances. Check out what we offer on the Nophin homepage!


To help us determine the five best cities in all states, the Nophin team used data from several sources including the 2020 United States Census, the Department of Housing & Urban Development, Federal Reserve Economic Data (FRED), the National Association of REALTORS®, Zumper, internal data, and other reputable sources. Image by Chris Watson, CC BY 2.0.

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Please note: Nothing above should be construed as legal, investment, tax, nor financial advice. This content is for informational purposes only. Consult a lawyer and/or an accountant if the above is right for your personal situation.

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