1st Advantage MortgageNicholasville, KY DSCR loans work like they do elsewhere: the lender divides the property's rent by its full monthly payment. The local inputs are a median gross rent of $1,147, median real estate taxes of $1,660 and a renter share of 42%.
Local data for Nicholasville investors
Median gross rent in Nicholasville: $1,147, about 19% above the Kentucky median of $967. Median owner-occupied home value: $226,800, about 10% above the Kentucky median of $205,600. Those are citywide medians, so an individual address can sit well on either side of them. The gross rent-to-value ratio for Nicholasville works out to 6.1% (twelve months of median rent divided by median value), close to the range investors often call workable. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Kentucky | Nicholasville | Difference |
|---|---|---|---|
| Share in 2-4 unit buildings | 7.1% | 12.3% | +74% |
| Share of homes detached | 67.5% | 67.4% | -0% |
| Long commuters, 45 min plus | 12.5% | 14.0% | +12% |
| Degree holders, age 25+ | 27.6% | 26.9% | -2% |
| Workers on their own account | 8.6% | 10.4% | +21% |
| Renters paying 30%+ of income | 45.4% | 43.9% | -3% |
| Units sitting vacant | 10.3% | 5.7% | -45% |
| Typical construction year | 1982 | 1993 | |
| Annual rent divided by value | 5.6% | 6.1% | +8% |
| Households that rent | 31.7% | 41.8% | +32% |
| Tax as a share of home value | 0.75% | 0.73% | -3% |
| Annual property tax bill, median | $1,544 | $1,660 | +8% |
| Typical owner-occupied value | $205,600 | $226,800 | +10% |
| Typical monthly rent | $967 | $1,147 | +19% |
| Residents (Census estimate) | 4,534,824 | 32,197 |
Tenure in Nicholasville is split fairly evenly: 41.8% renter-occupied and 58% owner-occupied, with the renter share well above the Kentucky median of 32%. Against a median household income of $68,503 (close to the Kentucky median of $63,726), 44% of renters report rent at or above 30 percent of income.
Property types and condition in Nicholasville
Single-family detached housing accounts for 67% of the units counted in Nicholasville, so expect house-style comparables in most appraisals. With a median build year of 1993, newer houses and townhomes set the tone, and homeowner association rules matter more than deferred maintenance.
Use vacancy as a reality check: 6% of all units are vacant in Nicholasville, and the rental vacancy rate is 2.4%.
Investor takeaways for Nicholasville
At 6.1% gross, Nicholasville is a middle-yield market, so ratios usually clear with a normal down payment and careful attention to insurance and taxes. Because homes here are relatively new, expect more subdivisions and associations than in older cities. Renters are 42% of households, which gives investors a real tenant base to market to.
Insurance, tax and flood context for Nicholasville
The Census reports median real estate taxes paid of $1,660 in Nicholasville, close to the Kentucky median of $1,544. Against the median value that is an effective rate of roughly 0.73%, compared with 0.75% for Kentucky as a whole. At the median rent that tax bill takes roughly 12% of a year's rent before insurance, dues or interest.
County-level hazard data from FEMA (National Risk Index 1.20) shows Jessamine County with very low overall risk and strong wind (relatively high), lightning (relatively moderate) and winter weather (relatively moderate) at the top of the list.
| Hazard in Jessamine County, FEMA index | Level |
|---|---|
| Tornadoes exposure | Relatively Moderate |
| Winter weather exposure | Relatively Moderate |
| Lightning exposure | Relatively Moderate |
| Strong wind exposure | Relatively High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Low |
| Composite risk | Very Low |
Many investors meet insurance too late, so get a quote tied to the Nicholasville property's roof age and flood zone before you waive your inspection period.
A worked DSCR test for Nicholasville
For a rough fit test, treat $1,147 as the rent and $138 as the monthly tax. The payment cannot exceed $1,147 at a 1.00 ratio, so $1,009 is left after taxes for interest, principal, insurance and any association dues, shrinking to $779 if the lender wants 1.25.
What KY law and Nicholasville require of landlords
For Nicholasville, treat local rental rules as an open question to close before you offer. Ask the city and Jessamine County about landlord registration, inspections and short-term rental permits, and check association documents too. For Nicholasville short-term hosts, one state-level point stands out. 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.
Landlord entry in Kentucky: At least 2 days' notice, except in an emergency or where impracticable (URLTA areas).
How Nicholasville stacks up against its neighbors
Prices in the comparison range from $183,700 in Frankfort to $293,500 in Lexington, with Nicholasville at $226,800.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Frankfort | 51% | $1,571 | $183,700 | 28,503 | $944 |
| Georgetown | 38% | $1,839 | $265,400 | 39,117 | $1,255 |
| Richmond | 62% | $1,713 | $214,900 | 37,111 | $917 |
| Lexington | 46% | $2,542 | $293,500 | 323,725 | $1,164 |
| Nicholasville | 42% | $1,660 | $226,800 | 32,197 | $1,147 |
Workforce and demand drivers in Nicholasville
10.4% of employed residents work for themselves, which matters here because DSCR lending does not ask for tax returns or pay stubs. Around the edges, government workers are about 15% of employment, 27% of adults hold a bachelor's degree or higher and 14% of commuters travel 45 minutes or more.
Before you make an offer in Nicholasville
Bring the Nicholasville 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.
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- Every market we cover
Where we checked
- Nicholasville landlords: see KRS 383.580
- Lodging tax reference: Kentucky Department of Revenue, transient room tax
- American Community Survey tables, Kentucky
- National Risk Index entry, Jessamine County
- Background reading: Nicholasville, Kentucky
All Nicholasville statistics are ACS five-year survey estimates from 2020 to 2024. For Kentucky tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Our check date is October 2026, so look for newer Nicholasville rules before you commit.
A short buyer checklist
On a Nicholasville purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How does a lender pick the rent for a Nicholasville DSCR file?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Nicholasville renters report a median of $1,147.
What payment can a Nicholasville rent support?
They count in full. A 1.25 ratio on $1,147 of rent permits a payment near $918, and median Nicholasville taxes take about $138 of it each month.
Are Nicholasville property taxes high for Kentucky?
The median bill is $1,660, an effective rate near 0.73%. Because Jessamine County may reassess at sale, use an estimate on the new price when you run the ratio.
Will a lender count nightly rental income at a Nicholasville property?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Kentucky lodging taxes before you underwrite nightly income in Nicholasville.
Does hazard risk affect a Nicholasville DSCR loan?
At the county level FEMA calls overall risk very low. Insurance, not the index, shows up in the ratio, so price a policy for the Nicholasville address.
Should a Nicholasville rental be bought in an LLC?
No, but it is common. Entity borrowers supply articles, an operating agreement and an EIN letter, and the owners typically guarantee the loan. A Kentucky attorney can advise on structure.