Investment Properties in Elizabethtown, KY

Elizabethtown offers a compelling case for real estate investors. A combination of strong rental demand, affordable purchase prices, and a stable economic base anchored by Fort Knox creates the kind of predictable cash flow that investors seek. Whether you are a local landlord adding to your portfolio or an out-of-state investor looking at Kentucky for the first time, here is what you need to know about the Elizabethtown investment market.

What Drives Rental Demand

Elizabethtown benefits from multiple rental demand drivers that operate independently, reducing the risk that any single economic shift will collapse the market:

• Fort Knox military families. PCS rotations bring a constant stream of tenants who need housing for 2-3 year assignments. Many of these families prefer to rent rather than buy, especially for shorter tours. Military tenants are generally reliable, with steady income backed by BAH.
• Elizabethtown Community and Technical College (ECTC) students. ECTC enrollment creates demand for affordable rental units, particularly one- and two-bedroom apartments near campus and along the Dixie Highway corridor.
• Young professionals and civilian workers. Fort Knox's civilian workforce, local healthcare employers, and the growing logistics sector along I-65 generate demand from professionals who are not yet ready to buy or prefer renting flexibility.
• Louisville commuters. Some workers commuting to Louisville choose to rent in E-town for the lower cost of living while testing the area before committing to a purchase.

Average Rental Yields

Gross rental yields in the Elizabethtown market typically fall in the 6-9% range, depending on the property type, location, and condition. Here is a general breakdown:

• Single-family homes ($180,000-$240,000 purchase): Renting for $1,200-$1,500/month, these properties generate gross yields of approximately 7-8%. After expenses (taxes, insurance, maintenance, vacancy), net yields typically settle around 4-6%.
• Duplexes and small multifamily: Less common in E-town but available. When you find them, cap rates can reach 8-10% because both units generate income against a single property tax and insurance cost.
• Townhomes and condos ($150,000-$200,000 purchase): Renting for $950-$1,150/month. HOA fees reduce net yield, but lower maintenance responsibility can offset some of that impact.

Compared to markets like Louisville, Nashville, or Indianapolis, Elizabethtown offers higher cash-on-cash returns due to lower entry prices and a rental market supported by the military tenant base. For current average rent data, see our rental market overview.

Best Neighborhoods for Investment

Not every neighborhood in Elizabethtown makes an equally good investment. Here are the areas that consistently perform well for rental properties:

• Helmwood and Valley Creek. Established subdivisions with affordable single-family homes in the $180,000-$220,000 range. Strong rental demand from military families, low vacancy rates, and predictable tenant turnover aligned with PCS cycles.
• Radcliff and Vine Grove (adjacent communities). Even more affordable than Elizabethtown proper, with strong proximity to Fort Knox gates. Properties here attract military tenants who want the shortest possible commute to post.
• Near Elizabethtown Community and Technical College. One- and two-bedroom units near campus or along Ring Road attract student and young professional tenants. Turnover is higher, but rents are steady.
• Newer subdivisions (Windermere, The Reserve). Higher purchase prices mean lower percentage yields, but these areas attract higher-quality tenants willing to pay premium rents. Maintenance costs are also lower on newer construction.

For a full breakdown of Elizabethtown neighborhoods, including school ratings, amenities, and home values, see our neighborhood guide.

Military Tenant Considerations

Renting to military families near Fort Knox offers distinct advantages, but investors should understand the unique aspects of this tenant pool:

• BAH-based affordability. Military tenants budget their housing based on their Basic Allowance for Housing. For an E-5 with dependents, that is approximately $1,647/month in 2026. Most military renters look for homes at or below their BAH rate. Pricing your rental at or slightly under the BAH rate for your target rank ensures fast occupancy.
• Predictable lease cycles. PCS orders create 2-3 year tenancies that are relatively predictable. However, the Servicemembers Civil Relief Act (SCRA) allows military tenants to break a lease with 30 days' notice when they receive PCS orders. Factor this into your planning.
• Property condition expectations. Military families typically expect clean, well-maintained homes. Properties that meet the standards of on-post housing will attract tenants quickly, while deferred-maintenance properties will struggle.
• Income reliability. Military pay arrives on the 1st and 15th of every month without fail. Rent collection from military tenants is among the most reliable of any tenant demographic.

Getting Started as an Investor

If you are considering purchasing an investment property in Elizabethtown, preparation is key. Start by researching Hardin County property tax rates and local landlord-tenant regulations. Kentucky is generally landlord-friendly compared to many states, with no rent control and reasonable eviction timelines, but you should still understand your obligations regarding security deposits, lease terms, and property maintenance.

Working with a real estate agent who understands both the investment and military sides of the equation will help you identify properties that meet cash flow targets while appealing to the tenant base that drives this market.