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Cap Rate Analysis: Bowling Green, KY

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

Moderate — source deals carefully
Based on $220,000 median price and $1,180/mo median rent
Est. Cap Rate
4.48%
1% Rule
0.54%
Fails
GRM
15.5x
Price / Income
4.8x

Market Data

Median Home Price$220,000
Median Monthly Rent$1,180
Property Tax Rate0.8%
Population78,000
Population Growth1.2% / yr
Median Household Income$46,200
Vacancy Rate5.5%
Annual Appreciation2.8%

Cap Rate Calculator — Bowling Green

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.8% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.73%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,197
net operating income
Gross Rent Multiplier
15.5x
High (>15)
1% Rule
0.54%
✗ Fails
Monthly Cash Flow
$683
before debt service
Annual Breakdown
Gross Rental Income$14,160
Less Vacancy−$779
Effective Income$13,381
Less Operating Expenses−$5,184
Net Operating Income$8,197

Cash-on-Cash Return — Bowling Green

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

$
$55,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.63%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$61,600
$55,000 down + $6,600 closing
Monthly Mortgage
$1,076
on $165K loan
Monthly Cash Flow
$-392
after all expenses
Annual Cash Flow
$-4,700
before taxes
Cash Flow Breakdown
Monthly Rent$1,180
Less Expenses−$496
Less Mortgage−$1,076
Monthly Cash Flow$-392

Is Bowling Green a Good Place to Invest in Rental Property?

Bowling Green, KY has a population of 78,000 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $220,000 paired with median rents of $1,180/mo produces an estimated cap rate of 4.48%.

Property taxes at 0.8% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.8x, homes cost about 4.8 times the local median income of $46,200. This moderate ratio indicates a balanced rent-vs-buy market. 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: Bowling Green presents moderate opportunities. Cap rates near 4.48% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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