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📊 Kentucky · Housing Market 2026

Louisville Housing Market Data 2026

Median prices, cap rates, rent benchmarks, and investment outlook for Louisville, Kentucky — data sourced from Zillow, HUD FMR, and Census ACS.
🟡 Moderate Market Median Price:$255,000 Cap Rate:5.9% Vacancy:7.8% 12-Mo Outlook:→ Neutral
$255,000
Median Home Price
YoY: +2.8%
5.9%
Avg Cap Rate
Cash-on-cash: 6.1%
$1,250
Median Rent (2BR/mo)
YoY: +2.0%
7.8%
Vacancy Rate
High — watch carefully
36 days
Days on Market
Moderate pace
$255,000 / 5.9%
Price / Cap Rate
🟡 Moderate Market

📈 Market Analysis — Louisville, KY

**Market Analysis: Louisville, KY (2026 Outlook)**

Louisville enters 2

🔮 12-Month Predictive Outlook View All Markets →

Price Trend
→ Neutral
12-mo forecast: $261,114
Confidence: 92%
Rent Growth
→ Stable
12-mo forecast: $1,274/mo
Confidence: 90%
Emerging Score
59/100
Confidence: 92%
Price Momentum +2.8% YoY (national: +2.3%)
Days on Market 36 days (national avg: 38)
Predictions are rule-based forecasts based on price momentum, rent data, vacancy trends, and population growth. Not investment advice. See full rankings →

🏘️ Rent Breakdown — HUD Fair Market Rents

HUD Fair Market Rent represents the 40th percentile of gross rents paid by recent movers in Louisville. Used as a benchmark for Section 8 voucher limits and rental market analysis.

Bedroom Count Monthly Rent (HUD FMR) Annual Rental Income Est. Cap Rate at Median Price
1 Bedroom $1,050/mo $12,600/yr 3.5% est.
2 Bedrooms $1,250/mo $15,000/yr 4.1% est.
3 Bedrooms $1,550/mo $18,600/yr 5.1% est.
* Estimated cap rate uses the 70% rule (30% reserved for expenses). Actual cap rates vary by property and management style.

💰 Cost of Investing in Louisville

Cost ItemRate / AmountEst. Annual CostMonthly Cost
Property Tax 0.8% effective rate $2,040 $170/mo
Homeowners Insurance Kentucky avg premium $1,700 $142/mo
Total Tax + Insurance Based on median home price of $255,000 $312/mo

These figures reflect state-level averages. Property tax rates vary by county; insurance costs vary by property type, age, and claims history. Source: Tax Foundation (2025), NAIC (2024).

⚖️ How Louisville Compares to National Averages

Avg Cap Rate
5.9%
National avg: 5.5%
✓ Above average
Median Home Price
$255,000
National avg: $371,696
✓ More affordable
Vacancy Rate
7.8%
National avg: 7.6%
Above avg vacancy
2BR Median Rent
$1,250/mo
National avg: $1,753/mo
Days on Market
36 days
National avg: 38 days
Price Growth YoY
+2.8%
National avg: +2.3%

National averages calculated across all 69 tracked US investor markets. A cap rate above the national average suggests stronger cash flow potential relative to purchase price.

🗺️ Nearby Markets in Kentucky

No other markets in this state.

View all Kentucky markets →
Related Guides & Resources
BRRRR Strategy Guide Vacancy Rate Calculator Rental Yield Calculator Market Rankings Best Market Data Tools All Markets
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