1st Advantage MortgageInvestors buying in Frankfort, KY are measured on the rent the property earns. Locally, median gross rent is $944 and median real estate taxes are $1,571 a year, which together set how much loan a rent can carry.
What the numbers say about Frankfort
For Frankfort, the latest five-year ACS shows a median gross rent of $944 (close to the Kentucky median of $967) and a median owner-occupied value of $183,700 (about 11% below the Kentucky median of $205,600). A quick screen: twelve months of Frankfort median rent over its median home value equals 6.2%, a middle-of-the-road gross ratio. Use it to compare markets, then replace it with real rent evidence for the address.
| Indicator | Kentucky | Frankfort | Difference |
|---|---|---|---|
| Tax as a share of home value | 0.75% | 0.86% | +14% |
| Annual property tax bill, median | $1,544 | $1,571 | +2% |
| Typical owner-occupied value | $205,600 | $183,700 | -11% |
| Typical monthly rent | $967 | $944 | -2% |
| Persons per household | 2.43 | 2.11 | |
| Share of homes detached | 67.5% | 53.9% | -20% |
| Long commuters, 45 min plus | 12.5% | 6.2% | -50% |
| Degree holders, age 25+ | 27.6% | 28.4% | +3% |
| Workers on their own account | 8.6% | 7.3% | -15% |
| Renters paying 30%+ of income | 45.4% | 46.5% | +2% |
| Units sitting vacant | 10.3% | 7.0% | -32% |
| Typical construction year | 1982 | 1972 | |
| Annual rent divided by value | 5.6% | 6.2% | +9% |
| Households that rent | 31.7% | 51.2% | +62% |
| Residents (Census estimate) | 4,534,824 | 28,503 |
51.2% of households in Frankfort rent, well above the Kentucky median of 32%. A large renter base supports steady leasing but also means plenty of competing listings. Against a median household income of $53,073 (about 17% below the Kentucky median of $63,726), 46% of renters report rent at or above 30 percent of income.
Homes, buildings and vacancies in Frankfort
Multifamily matters in Frankfort. About 40% of housing units are in multi-unit buildings, and 17% are in two to four unit properties that fit standard DSCR programs. A median build year of 1972 puts most of the stock in its second round of big repairs, and an inspector will show what remains.
About 7% of Frankfort's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 2.6%.
Underwriting angles in Frankfort
Frankfort's 6.2% yield is workable. Expect most single-family rentals to land near the lender's minimum ratio, so details like taxes after reassessment matter. Homes of this vintage age unevenly, so rent comparables should come from properties in similar condition. Renter-heavy markets like Frankfort favor investors with a clear tenant profile, whether workers, students or families.
Taxes, insurance and hazards in Frankfort
Tax drag is easy to underestimate. Frankfort owners report a median $1,571 in annual real estate taxes, close to the Kentucky median of $1,544, an effective 0.86% of median home value. At the median rent that tax bill takes roughly 14% of a year's rent before insurance, dues or interest.
The federal National Risk Index scores Franklin County relatively low for overall risk, led by strong wind (relatively high), tornadoes (relatively moderate) and ice storms (relatively moderate). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Franklin County, FEMA index | Level |
|---|---|
| Winter weather exposure | Relatively Moderate |
| Ice storms exposure | Relatively Moderate |
| Tornadoes exposure | Relatively Moderate |
| Strong wind exposure | Relatively High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Relatively Low |
Many investors meet insurance too late, so get a quote tied to the Frankfort property's roof age and flood zone before you waive your inspection period.
What the Frankfort medians allow
The quick test for Frankfort: rent of $944 divided by a 1.25 ratio allows a total payment of $755, and subtracting $131 in monthly taxes leaves $624 for the loan, insurance and dues. At 1.00 the allowance is the full $813.
Rules a Frankfort landlord should check
Local rental rules in Frankfort are not summarized here because we could not verify them from a city source. Ask the city and Franklin County about registration, inspection and short-term rental requirements, and confirm what an HOA allows. State tax treatment of short stays, as it applies to Frankfort. Kentucky applies sales tax and a statewide transient room tax to short-term rentals, exempts stays of 30 continuous days or more, and requires platforms that facilitate bookings to collect and remit both state and local transient taxes.
As for landlord entry, At least 2 days' notice, except in an emergency or where impracticable (URLTA areas).
Comparing Frankfort with surrounding markets
Among the nearby markets above, Nicholasville has the lowest median home value at $226,800 and Lexington the highest at $293,500, against $183,700 in Frankfort.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Jeffersontown | 30% | $2,151 | $250,700 | 29,199 | $1,320 |
| Nicholasville | 42% | $1,660 | $226,800 | 32,197 | $1,147 |
| Lexington | 46% | $2,542 | $293,500 | 323,725 | $1,164 |
| Georgetown | 38% | $1,839 | $265,400 | 39,117 | $1,255 |
| Frankfort | 51% | $1,571 | $183,700 | 28,503 | $944 |
Workforce and demand drivers in Frankfort
The self-employed share of the workforce is 7.3%, and those owners tend to be exactly the buyers DSCR financing was built for. Three more data points: government workers are about 32% of employment, 28% of adults hold a bachelor's degree or higher and 6% of commuters travel 45 minutes or more.
Kentucky State University are the named colleges for the Frankfort area, a source of steady tenants but also of a lease cycle that follows the academic calendar. Frankfort offers interstate access via I-64 and air service through Blue Grass Airport and Cincinnati/Northern Kentucky International Airport, details that affect commute times and how easily a distant investor can inspect a property.
Next steps for a Frankfort purchase
Bring the Frankfort numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More Kentucky markets
- All Kentucky DSCR loans
- DSCR loans in Georgetown, KY
- DSCR loans in Lexington, KY
- DSCR loans in Nicholasville, KY
- DSCR loans in Jeffersontown, KY
- Every market we cover
Where we checked
- Frankfort overview (Wikipedia)
- Text of KRS 383.580 for Frankfort landlords
- Lodging tax reference: Kentucky Department of Revenue, transient room tax
- 2020 to 2024 ACS data used for Frankfort
- FEMA risk data used for Frankfort
Frankfort's figures are ACS estimates covering 2020 to 2024 and are not exact counts. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Kentucky sections. Checked October 2026; confirm with Frankfort or the county before you rely on any rule.
Before you make an offer
For a Frankfort rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Frankfort rent documented for a DSCR loan?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Frankfort median rent of $944 is context and not a substitute.
What payment can a Frankfort rent support?
Every piece of PITIA is in the denominator. With $944 in rent, a 1.25 lender allows about $755, leaving $624 after median taxes of $131 a month.
What does Franklin County charge in property tax, in practice?
Typical owners pay $1,571, or 0.86% of home value, with Kentucky overall at 0.75%. Do not assume the seller's bill carries over to you.
Is short-term rental income allowed for a Frankfort DSCR loan?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Frankfort and any HOA permit stays under 30 days, and that you can register for Kentucky lodging tax.
What hazard risk does Frankfort carry for investors?
Overall risk is rated relatively low for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
How do LLC closings work for Frankfort rentals?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in Frankfort.