Real Estate Investing in Richmond, Kentucky (40385)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40385 (Richmond, KY)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 28.4% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 25.5 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Richmond, KY (40385)?
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Market Analysis: 40385 Richmond
This part of Madison County is not an easy win. The 40385 ZIP comes in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Rent of $828/mo on a $253K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 40385 sits below the stated 0.0% once reality is priced in.
Within KY, ZIP 40385 trails on several market indicators that neighboring Madison County submarkets outperform. The gap is real and solid enough to shape underwriting.
Demographically, 40385 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
New investors are better served looking at Richmond's stable or hybrid ZIPs before stepping into 40385. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Richmond:
Market Trends
Home Value History (with trend line)
📊 How Does 40385 Compare?
| Metric | 40385 | Richmond | Richmond-Berea, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $253,402 | $278,339 | N/A | $225,788 |
| 5-Year CAGR | 5.3% | 5.4% | N/A | 6.9% |
| Avg Rent | $828 | $1,003 | N/A | - |
| Cap Rate | 2.6% | 2.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 40385 (Richmond, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $253,402 |
| Monthly Rent | $828 |
| Price-to-Rent | 25.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.6% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | +4.9% ▲ |
| 3-Year CAGR | +6.2% ▲ |
| 5-Year CAGR | +5.3% ▲ |
| 10-Year CAGR | +6.6% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.6%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 40385
Population: 2,378
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 40385
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 1,170 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Can I live-in-and-rent in Richmond, KY?
House hacking in Richmond, KY is a challenging. With home values around $253K and rents at $828/mo, owner-occupants can offset a meaningful share of PITI.
What is the tenant pool like in Richmond, KY?
Expect a solid tenant pool in Richmond, KY. The rental market absorbs $828/mo rents without meaningful friction.
How does Richmond, KY stack up for property investment?
Yes - Richmond, KY a 3.0/5 investability score. With $253K home prices against $828/mo monthly rent, the market delivers a reasonable entry point for new investors.
How high is vacancy risk in Richmond, KY?
Vacancy risk in Richmond, KY is elevated. That supports reliable cash flow for typical rental holds.
Are landlord laws favorable in Richmond, KY?
Richmond, KY operates under KY law, which is landlord-friendly overall for landlords. Expect even-keeled treatment in typical lease and eviction cases.
You know 40385 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 40385 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 40385 ranks in Richmond-Berea, KY
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