Real Estate Investing in Lily, Kentucky (40740)
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Should you buy in 40740 (Lily, KY)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- 1-year downturn: Values declined 5.1% in the last year.
- Elevated poverty: 20.2% poverty rate — can affect rent collection.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Lily, KY (40740)?
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Market Analysis: 40740 Lily
Not every below-median market is a bargain. Lily's 40740 ZIP shows signals that favor experienced operators who can absorb the risk $158K pricing implies.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $158K asset, 40740 is the wrong submarket. If the plan prices in friction, the yield can still work.
Nearby ZIPs in Lily have seen price recovery that 40740 has not matched. Laurel County data supports the view that the spread is structural rather than temporary.
Employment concentration in 40740 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
The right play in 40740 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Lily:
Market Trends
Home Value History (with trend line)
📊 How Does 40740 Compare?
| Metric | 40740 | Lily | London, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $158,214 | $158,214 | N/A | $225,788 |
| 5-Year CAGR | 4.2% | 4.2% | N/A | 6.9% |
| Avg Rent | $783 | $783 | N/A | - |
| Cap Rate | 3.9% | 3.9% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 40740 (Lily, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $158,214 |
| Monthly Rent | $783 |
| Price-to-Rent | 16.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.9% |
| Cap Rate | 3.9% |
| 5-Year IRR | 8.0% |
📈 Home Appreciation
| 1-Year | -5.1% ▼ |
| 3-Year CAGR | +1.2% ▲ |
| 5-Year CAGR | +4.2% ▲ |
| 10-Year CAGR | +5.3% ▲ |
🏠 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 (3.9%). 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 40740
Population: 3,954
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 40740
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Sublimity Elementary School
Wyan-Pine Grove Elementary
Camp Ground Elementary School
South Laurel Middle School
McDaniel Learning Center
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
Frequently Asked Questions
Is Lily, KY a good place for real estate investing?
Yes - Lily, KY a 3.0/5 investability score. With $158K home prices against $783/mo monthly rent, the market delivers a reasonable entry point for new investors.
What is the average home sale price in Lily, KY?
Expect median prices around $158K in Lily, KY. The market has run at a 0.0% 5-year CAGR, so entry costs have been measured.
Is Lily, KY better for rentals, flips, or BRRRR?
For Lily, KY, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
How quickly do rentals get leased in Lily, KY?
Lily, KY carries elevated vacancy risk. Expect consistent absorption at market rents of $783/mo.
Is house hacking profitable in Lily, KY?
House hacking in Lily, KY is reasonable to execute. Prices around $158K and rents of $783/mo solid owner-occupant economics.
You know 40740 now. You don’t know where it ranks.
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How 40740 ranks in London, KY
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