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Kentucky Rental Yield Calculator

Calculate rental yield using Kentucky market data. Gross yield uses total rent before expenses; net yield subtracts operating costs — the number that actually matters.

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Property & Income

Operating Expenses(Kentucky defaults)

Total Annual Expenses$10,531

Gross vs. Net Rental Yield

Gross rental yield is the simplest comparison metric: annual rent divided by total property cost. It's useful for quick screening but doesn't account for the real cost of ownership.

Net rental yield subtracts operating expenses (taxes, insurance, maintenance, management, vacancy) from income before dividing by cost. This tells you what the property actually earns as a percentage of your investment.

The gap between gross and net reveals your expense ratio — how much of your gross income gets consumed by costs. A tight ratio means more money in your pocket; a wide one means the property is expensive to hold.

Kentucky Market Context

Avg Cap Rate

6.8%

Median Price

$263K

Property Tax

0.72%

Vacancy Rate

6.9%

Local Factors

  • -Louisville and Lexington are the primary rental markets with steady demand
  • -High insurance costs relative to home values due to storm exposure
  • -Affordable entry prices with moderate cash flow potential

Net Rental Yield

2.0%

Low

Gross Rental Yield

5.9%

Annual Gross Income$15,864
Annual Net Income$5,333
Total Investment$270,890
Total Expenses$10,531
Expense Ratio66.4%
Monthly Net Income$444
NET YIELD2.0%
Net Income$5,333
Property Tax$1,894
Insurance$3,643
Maintenance$2,630
Management$1,269
Vacancy$1,095
Other$0

What does this mean?

A net yield below 3% is typical in high-demand markets where appreciation drives returns more than cash flow. You're betting on the asset growing in value.