1st Advantage MortgageOwensboro is a KY market where the rent-to-payment ratio decides the loan. Median rent is $905, median home value is $178,900 and 43% of households rent.
Market snapshot for Owensboro
Renters who pay cash rent in Owensboro have a median gross rent of $905 a month, close to the Kentucky median of $967, while owner-occupied homes carry a median value of $178,900. Dividing a year of median rent by the median home value gives a gross rent-to-value ratio of 6.1%, close to the range investors often call workable. It mixes apartments and houses, so treat it as a compass and not as the number for any one property.
| Indicator | Kentucky | Owensboro | Difference |
|---|---|---|---|
| Persons per household | 2.43 | 2.30 | |
| Share in 2-4 unit buildings | 7.1% | 12.1% | +71% |
| Share of homes detached | 67.5% | 69.8% | +3% |
| Long commuters, 45 min plus | 12.5% | 8.1% | -35% |
| Workers on their own account | 8.6% | 6.4% | -25% |
| Renters paying 30%+ of income | 45.4% | 43.6% | -4% |
| Units sitting vacant | 10.3% | 6.7% | -35% |
| Annual rent divided by value | 5.6% | 6.1% | +8% |
| Households that rent | 31.7% | 42.6% | +34% |
| Tax as a share of home value | 0.75% | 0.92% | +22% |
| Annual property tax bill, median | $1,544 | $1,642 | +6% |
| Household income, median | $63,726 | $56,357 | -12% |
| Typical owner-occupied value | $205,600 | $178,900 | -13% |
| Typical monthly rent | $967 | $905 | -6% |
| Residents (Census estimate) | 4,534,824 | 60,302 |
42.6% of Owensboro households rent, well above the Kentucky median of 32%. That is a healthy base of tenants without the churn of a pure student or military town. Household income runs a median $56,357 (about 12% below the Kentucky median of $63,726), while 44% of renters spend 30 percent or more of income on housing.
Housing stock and vacancy in Owensboro
About 70% of Owensboro's housing is detached single-family, which means a typical rental purchase is a house with its own roof, yard and repair schedule. With 1972 as the median build year, expect aging HVAC and roofs and ask for the dates of the last replacements.
About 7% of Owensboro's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 4.9%.
What the data means for Owensboro buyers
With a 6.1% rent-to-value ratio, Owensboro deals tend to work when the buyer controls the price and carrying costs, and struggle when either runs above the median. Homes of this vintage age unevenly, so rent comparables should come from properties in similar condition. A 43% renter share is large enough to keep units leased, so location relative to jobs and schools drives rent more than the market as a whole.
Taxes and risk in Owensboro
Tax drag is easy to underestimate. Owensboro owners report a median $1,642 in annual real estate taxes, close to the Kentucky median of $1,544, an effective 0.92% of median home value. In rent terms, the tax bill equals roughly 15% of twelve months of median rent.
The federal National Risk Index scores Daviess County relatively moderate for overall risk, led by ice storms (very high), strong wind (relatively high) and winter weather (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Daviess County, FEMA index | Level |
|---|---|
| Earthquakes exposure | Relatively Moderate |
| Winter weather exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Ice storms exposure | Very High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Flood risk in Owensboro is parcel by parcel: check the address on FEMA's flood map service, because a mapped high-risk zone means required flood cover and a heavier payment.
Running the numbers in Owensboro
Try the math at the medians. With rent at $905 and taxes near $137 a month, a 1.00 DSCR leaves $768 for everything else in the payment, a 1.20 ratio leaves $617, and a 1.25 ratio leaves $587. Any real property will differ, but the exercise shows how little room insurance and dues can take.
Legal checks before a Owensboro purchase
Local rental rules in Owensboro are not summarized here because we could not verify them from a city source. Ask the city and Daviess 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 Owensboro. 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.
On entering a unit, Kentucky says: At least 2 days' notice, except in an emergency or where impracticable (URLTA areas).
How Owensboro stacks up statewide
Other Kentucky markets on this site show median values from $187,300 (Covington) to $250,700 (Jeffersontown); Owensboro is $178,900.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Nicholasville | 42% | $1,660 | $226,800 | 32,197 | $1,147 |
| Covington | 48% | $2,085 | $187,300 | 41,110 | $1,006 |
| Jeffersontown | 30% | $2,151 | $250,700 | 29,199 | $1,320 |
| Owensboro | 43% | $1,642 | $178,900 | 60,302 | $905 |
Workforce and demand drivers in Owensboro
Self-employed workers, incorporated or not, make up 6.4% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Other workforce markers: government workers are about 12% of employment, 26% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
Owensboro's principal employers for 2023 are given as Owensboro Health, U.S. Bank Home Mortgage, Owensboro Public Schools, Toyotetsu Mid-America and Specialty Foods Group. Rental demand follows jobs, so a property within an easy commute of one of them has a natural tenant pool. Brescia University, Kentucky Wesleyan College, Owensboro Community and Technical College and Daymar College are the named colleges for the Owensboro area, a source of steady tenants but also of a lease cycle that follows the academic calendar. For getting around, Owensboro has interstate access via I-165 and air service through Owensboro-Daviess County Regional Airport and Evansville Regional Airport, which matters to commuters and to out-of-town owners planning a visit.
Moving from numbers to a Owensboro loan
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Owensboro address, check them in the calculator, and begin your application or get a quote first.
More Kentucky markets
- All Kentucky DSCR loans
- DSCR loans in Jeffersontown, KY
- DSCR loans in Covington, KY
- DSCR loans in Nicholasville, KY
- Every market we cover
Source links
- Census Bureau ACS 5-year 2020 to 2024 tables
- Federal hazard index, KY
- Owensboro overview (Wikipedia)
- Kentucky landlord deposit rules, KRS 383.580
- Kentucky Department of Revenue, transient room tax
Owensboro's figures are ACS estimates covering 2020 to 2024 and are not exact counts. Landlord rules for Owensboro rest on Kentucky statutes and the CC BY 4.0 RedFlagLease dataset. Facts were checked in October 2026, and rules change.
Quick file checklist
For a Owensboro 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
Lease or market rent: what counts in Owensboro?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Owensboro median rent of $905 is context and not a substitute.
What payment can a Owensboro rent support?
Yes, the payment includes principal, interest, taxes, insurance and association dues. At the Owensboro median rent of $905, a 1.25 ratio allows about $724 in total payment, of which roughly $137 a month goes to median taxes.
What does Daviess County charge in property tax, in practice?
Owensboro owners report a median $1,642 in annual real estate taxes, an effective 0.92% (Kentucky: 0.75%). Your own bill depends on the assessed value after purchase.
Will a lender count nightly rental income at a Owensboro property?
It depends on the program and on local law. A Owensboro owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
What hazard risk does Owensboro carry for investors?
The county scores relatively moderate overall in FEMA's index, with ice storms leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Can I close a Owensboro DSCR loan in an LLC?
An individual can borrow too. If you prefer an entity for the Owensboro purchase, expect to provide formation documents and sign a personal guaranty.