1st Advantage MortgageInvestors buying in Paducah, KY are measured on the rent the property earns. Locally, median gross rent is $834 and median real estate taxes are $1,390 a year, which together set how much loan a rent can carry.
Local data for Paducah investors
For Paducah, the latest five-year ACS shows a median gross rent of $834 (about 14% below the Kentucky median of $967) and a median owner-occupied value of $165,300 (about 20% below the Kentucky median of $205,600). By the simple measure of annual rent over home value, Paducah sits at 6.1%, close to the range investors often call workable. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Kentucky | Paducah | Difference |
|---|---|---|---|
| Persons per household | 2.43 | 2.19 | |
| Share in 2-4 unit buildings | 7.1% | 12.9% | +82% |
| Share of homes detached | 67.5% | 62.0% | -8% |
| Long commuters, 45 min plus | 12.5% | 4.4% | -65% |
| Degree holders, age 25+ | 27.6% | 28.8% | +4% |
| Workers on their own account | 8.6% | 8.2% | -4% |
| Renters paying 30%+ of income | 45.4% | 45.6% | +1% |
| Typical construction year | 1982 | 1967 | |
| Annual rent divided by value | 5.6% | 6.1% | +7% |
| Households that rent | 31.7% | 45.0% | +42% |
| Tax as a share of home value | 0.75% | 0.84% | +12% |
| Annual property tax bill, median | $1,544 | $1,390 | -10% |
| Household income, median | $63,726 | $49,915 | -22% |
| Typical owner-occupied value | $205,600 | $165,300 | -20% |
| Residents (Census estimate) | 4,534,824 | 26,845 |
Roughly 45.0% of occupied housing in Paducah is rented, well above the Kentucky median of 32%. Median household income of $49,915 (about 22% below the Kentucky median of $63,726) sets the ceiling for rent growth, and 46% of renters already spend 30 percent or more of income on rent.
The kind of housing in Paducah
No single type dominates Paducah. Detached houses are 62% of units, small buildings of two to four units are 13%, and larger apartment buildings fill much of the rest. The median home was built in 1967, a middle-aged stock where roofs, HVAC and water heaters are the main repair items.
Vacancy is a quiet driver of rent. 15% of homes are vacant citywide and 3.6% of the rental inventory was listed for rent when the Census surveyed.
Investor takeaways for Paducah
A 6.1% gross yield makes Paducah a market where the ratio is achievable but not automatic. A few hundred dollars of extra insurance or dues can decide a borderline file. Housing here is neither new nor ancient, so condition varies widely from block to block and the inspection tells you more than the median. Renters are 45% of households, which gives investors a real tenant base to market to.
Insurance, tax and flood context for Paducah
Property taxes in Paducah run a median $1,390 a year for owners, about 10% below the Kentucky median of $1,544. As a share of median value, that is about 0.84%. Set beside the median rent, the tax alone consumes about 14% of annual rent.
For hazards, FEMA's National Risk Index puts McCracken County at a relatively moderate overall rating, and its top-ranked hazards are ice storms (relatively high), winter weather (relatively high) and earthquakes (relatively moderate).
| Hazard in McCracken County, FEMA index | Level |
|---|---|
| Heat waves exposure | Relatively Moderate |
| Earthquakes exposure | Relatively Moderate |
| Winter weather exposure | Relatively High |
| Ice storms exposure | Relatively High |
| Social vulnerability score | Relatively Moderate |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Insurance belongs in the ratio from day one, so get a landlord quote for the Paducah address and ask about roof age, wind or hail deductibles and flood cover.
Working the Paducah rent math
Take the median rent ($834), subtract median taxes spread over twelve months ($116), and you have $718 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $551. Real quotes for the address decide the rest.
Registration, deposits and nightly stays in Paducah
We have not confirmed a city-specific rental registration or nightly-stay permit program for Paducah, so check with the city and with McCracken County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. On lodging taxes, a Paducah host should read this first. 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).
Paducah compared with nearby markets
Among the nearby markets above, Murray has the lowest median home value at $195,000 and Cape Girardeau the highest at $196,300, against $165,300 in Paducah.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Cape Girardeau | 46% | $1,380 | $196,300 | 40,344 | $876 |
| Murray | 58% | $1,535 | $195,000 | 18,080 | $870 |
| Paducah | 45% | $1,390 | $165,300 | 26,845 | $834 |
Who rents in Paducah
About 8.2% of Paducah workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. Looking at who fills the rentals, government workers are about 14% of employment, 29% of adults hold a bachelor's degree or higher and 4% of commuters travel 45 minutes or more.
For a sense of who employs Paducah renters, the published employer list for 2023 shows Bon Secours Mercy Health, Inc., Baptist Healthcare Systems, Wal-Mart Associates, Inc., Paducah Board of Education and Baptist Health Medical Group. Check the current year before you lean on it, since payrolls move. Campuses such as West Kentucky Community and Technical College, Aspen Institute, University of Kentucky College of Engineering and Murray State University pull tenants into Paducah, and landlords near them can plan around move-in seasons. On the logistics side, interstate access via I-69 and air service through Barkley Regional Airport are noted for Paducah.
Taking a Paducah deal to a lender
Before you offer on a Paducah property, test the ratio in the calculator, then apply now or request a DSCR quote.
More Kentucky markets
- All Kentucky DSCR loans
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- DSCR loans in Cape Girardeau, MO
- Every market we cover
Sources and data notes
- State rule cited for Paducah hosts: Kentucky Department of Revenue, transient room tax
- ACS 2020 to 2024 estimates for Paducah
- National Risk Index entry, McCracken County
- Encyclopedia entry for Paducah
- KRS 383.580, the Kentucky deposit law
The Paducah statistics are five-year ACS estimates (2020 to 2024), which have sampling error. For Kentucky tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Checked October 2026; confirm with Paducah or the county before you rely on any rule.
Pre-offer checklist
Before you commit on a Paducah deal, confirm the rent with the lease or a market estimate, price the insurance for the exact address, and check how the taxes may change after the sale, so the ratio you run matches the one the lender calculates.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
How is Paducah rent documented for a DSCR loan?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Paducah median is $834.
How do taxes and insurance affect a DSCR loan in Paducah?
Every piece of PITIA is in the denominator. With $834 in rent, a 1.25 lender allows about $667, leaving $551 after median taxes of $116 a month.
What tax bill should I expect on a Paducah rental?
The median bill is $1,390, an effective rate near 0.84%. Because McCracken County may reassess at sale, use an estimate on the new price when you run the ratio.
Can nightly stays at a Paducah property support a DSCR file?
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 Paducah.
What does FEMA say about hazard risk near Paducah?
FEMA's National Risk Index rates the county's overall natural hazard risk as relatively moderate. That is a county-level view, so check the FEMA flood map and an insurance quote for the exact Paducah address.
Do I need an LLC to buy a rental in Paducah?
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 Paducah.