Side-by-side comparison of Louisville, KY and Lexington, KY — cap rates, rent, prices, and investment metrics.
Cash flow: Louisville has the edge with an estimated cap rate of 4.37% compared to Lexington's 4.08%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $230,000 in Louisville vs $260,000 in Lexington, while rents come in at $1,220/mo and $1,300/mo respectively.
Growth & appreciation: Lexington is growing faster at 0.9% annually vs Louisville's 0.6%. Lexington leads on home value appreciation at 3.1% per year.
Costs & risk: Property taxes are 0.83% in Louisville vs 0.81% in Lexington. Vacancy rates of 5.8% and 5.2% are both healthy, suggesting strong tenant demand in both markets.
Bottom line: Lexington edges out Louisville on most key metrics. While cap rates are moderate at 4.08%, Lexington's overall profile is stronger. Use our free calculators to model specific deals in Louisville or Lexington.