Historic Short-Term Rental
For Sale
$625,000
231 S Main Street, Madisonville, KY 42431
Commercial Sale, Madisonville, KY
Property Size4,534 SF
Lot Size0.72 Acres
Price / SF$137.85
Days on Market40
Property Features for 231 S Main Street
General Information
Property type
Commercial Sale
Property subtype
Other
Directions
Home located on S Main to the left of Dunkin Donuts. Parking in the back of the home. Turn on alley off on Broadway.
Subdivision
1 - Madisonville
Standard status
Active
Size
4,534 SF
Lot size
0.72 Acres
Amenities
fully equipped kitchen
music room
laundry facilities
ADA accessibility improvements
Building Details
Year built
1909
Listing Agency:
Haven Realty, LLC
(270) 245-2626
Listed By:
Sara Spencer · License #241639
(270) 836-2771
Added: Jul 27
Changed: Aug 20
Last Checked: Sep 4 at 2:06AM
MLS# 122088
Copyright © 2026 Madisonville-Hopkins County Board of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
Constructed in 1909, this 4534-square-foot property combines short-term lodging with event space in downtown Madisonville. The layout includes 11 bedrooms with private baths, in-room microwaves and mini-refrigerators, a fully equipped kitchen, shared gathering rooms, a music room, and laundry facilities. A complete apartment on the third floor provides separate owner or manager accommodations.
The property is offered fully furnished with antique furniture, linens, and kitchenware. Improvements include a new roof, updated HVAC systems, new plumbing and electrical systems, and ADA accessibility work. It operates as a short-term rental and event venue and is situated on 0.72 acres in Madisonville, Kentucky.
The property is offered fully furnished with antique furniture, linens, and kitchenware. Improvements include a new roof, updated HVAC systems, new plumbing and electrical systems, and ADA accessibility work. It operates as a short-term rental and event venue and is situated on 0.72 acres in Madisonville, Kentucky.
Key Highlights
- Short‑term rental and event venue in downtown Madisonville
- 4534 square feet on 0.72 acres
- 11 bedrooms with private baths
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$27,662
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.43%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$553,240
$553.2K
Cap Rate 7%
$395,171
$395.2K
Cap Rate 9%
$307,356
$307.4K
Market Conditions
NOI Build-Up for 4,534 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$52.8K $11.64/SF
− Vacancy
−$2.5K −$0.55/SF
EGI
$50.3K $11.09/SF
− OpEx
−$22.6K −$4.99/SF
NOI
$27.7K $6.10/SF
Area
Hopkins County, KY
Vacancy
4.70%
Lease Rate
$11.64 /SF/Yr
Expense Ratio
45.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$553,240
Cap Rate 7%
$395,171
Cap Rate 9%
$307,356
Alternative Uses
Best Use
Apartment 5plus
$395.2K
$345.8K – $461.0K
NOI $27,662 @ 7.0% cap · market cap 4.43%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$764.8K
$669.2K – $892.3K
NOI $53,537 @ 7.0% cap · market cap 8.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Turnkey business
Opportunity
Location Intelligence
Trade Area within ½ mile
1,125
Businesses Nearby
Explore this area
Business Placement
Demographics for 42431, KY
26,566
Population
12,569
Households
2.1
Avg Household Size
41
Median Age
20%
College-Educated
88%
High-School Grad
166.7 sq mi
ZIP Area
159
Density / Sq Mi
$57,529
Median Household Income
$37,671
Median Earnings
$858
Median Rent
$151,800
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Short term rental property - Downtown lodging and event property with guest accommodations, common gathering areas, and a manager’s apartment.
Where is this short term rental property located?
The property is located at 231 S Main Street Madisonville, KY.
What is the asking price?
The asking price for this property is $625,000.
What are key features of this property?
This property features: Short‑term rental and event venue in downtown Madisonville; 4534 square feet on 0.72 acres; 11 bedrooms with private baths
