Average capitalization rate in Kentucky, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Kentucky

MedianMeanMode
8.2%
From 2,387,222 homes
8.3%
From 2,387,222 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Kentucky

LocationMedianMeanMode
Adair County
7.9%
From 9,069 homes
8.1%
From 9,069 homes
-
Adairville
5.5%
From 479 homes
5.5%
From 479 homes
-
Ages
9.1%
From 139 homes
9.2%
From 139 homes
-
Albany
6.8%
From 1,308 homes
6.7%
From 1,308 homes
-
Alexandria
9.1%
From 5,436 homes
8.7%
From 5,436 homes
-
Allen
6.7%
From 134 homes
6.7%
From 134 homes
-
Allen County
5.8%
From 10,313 homes
6.1%
From 10,313 homes
-
Allensville
6.1%
From 111 homes
6.1%
From 111 homes
-
Anchorage
7.1%
From 868 homes
7.5%
From 868 homes
-
Anderson County
8.1%
From 5,768 homes
8.2%
From 5,768 homes
-

All cities in Kentucky