Operating Short-Term Rental
For Sale
$345,000
934 E Muhammad Ali Blvd, Louisville, KY 40204
Operating short-term rental with renovated baths, updated kitchen, self check-in, and an option to include furnishings.
Property Size1,793 SF
Price / SF$192.41
Days on Market182
Property Features for 934 E Muhammad Ali Blvd
General Information
Standard status
Active
Size
1,793 SF
Property subtype
Hospitality
Zoning
OR2
Listing Agency:
Winner Realty
Listed By:
Madison Meredith · License #279604
(502) 974-1401
Source:
Kcrea.resimplifi
Added: Mar 4
Changed: Aug 29
Last Checked: Sep 1 at 2:39PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Winner Realty
Investment Insights
Based on property information with market context.
This 1,793-square-foot short-term rental property is currently operating as an Airbnb in Louisville’s Phoenix Hill corridor. The interior includes an updated kitchen with granite countertops and new appliances, renovated bathrooms, an open living area with natural light, high-speed internet, and a self check-in system. A washer and dryer are located on site, and the property includes a private backyard, street parking, and one off-street space.
The property is approximately 3 minutes from Downtown Louisville and about 15 minutes from Churchill Downs, Louisville International Airport, and the Expo Center. It is zoned OR2 and is legally nonconforming under Louisville’s short-term rental ordinance, with no conditional use permit required. Furnishings and operating components may remain in place as part of the acquisition.
The property is approximately 3 minutes from Downtown Louisville and about 15 minutes from Churchill Downs, Louisville International Airport, and the Expo Center. It is zoned OR2 and is legally nonconforming under Louisville’s short-term rental ordinance, with no conditional use permit required. Furnishings and operating components may remain in place as part of the acquisition.
Key Highlights
- Active Airbnb operation with 1,793 square feet of property
- Legally nonconforming under Louisville’s short‑term rental ordinance; no conditional use permit required
- Approximately 3 minutes from Downtown Louisville
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
$12,202
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
3.54%
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%
$244,040
$244.0K
Cap Rate 7%
$174,314
$174.3K
Cap Rate 9%
$135,578
$135.6K
Market Conditions
NOI Build-Up for 1,793 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
$23.5K $13.08/SF
− Vacancy
−$1.3K −$0.71/SF
EGI
$22.2K $12.37/SF
− OpEx
−$10.0K −$5.57/SF
NOI
$12.2K $6.81/SF
Area
Louisville, KY
Vacancy
5.40%
Lease Rate
$13.08 /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%
$244,040
Cap Rate 7%
$174,314
Cap Rate 9%
$135,578
Alternative Uses
Best Use
Apartment 5plus
$174.3K
$152.5K – $203.4K
NOI $12,202 @ 7.0% cap · market cap 3.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$464.7K
$406.7K – $542.2K
NOI $32,532 @ 7.0% cap · market cap 9.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,454
Businesses Nearby
Explore this area
Business Placement
Demographics for 40204, KY
14,600
Population
8,759
Households
1.7
Avg Household Size
38
Median Age
63%
College-Educated
97%
High-School Grad
3.2 sq mi
ZIP Area
4,563
Density / Sq Mi
$70,706
Median Household Income
$50,246
Median Earnings
$1,225
Median Rent
$314,700
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 - Operating short-term rental with renovated baths, updated kitchen, self check-in, and an option to include furnishings.
Where is this short term rental property located?
The property is located at 934 E Muhammad Ali Blvd Louisville, KY.
What is the asking price?
The asking price for this property is $345,000.
What are key features of this property?
This property features: Active Airbnb operation with 1,793 square feet of property; Legally nonconforming under Louisville’s short‑term rental ordinance; no conditional use permit required; Approximately 3 minutes from Downtown Louisville
