Real Estate Investing in Baxter, Kentucky (40806)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40806 (Baxter, KY)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.9% of homes vacant — above national norms.
- 1-year downturn: Values declined 5.9% in the last year.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Baxter, KY (40806)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 40806 Baxter
The 40806 ZIP in Baxter, KY is a local-operator market. Outside capital chasing a $107K entry has to pair deep knowledge with the discount.
The investment case in 40806 is significant only for operators who understand what they are buying. A $107K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
In the broader KY picture, 40806 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
The 40806 ZIP's population of 1,827 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
Strategy in 40806 is an operator game, not a passive one. Turning to rents, entry prices of $107K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Baxter:
Property Strategy for 40806
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $70,122 | $920 | 9.4% | +12.1% | $35,061 |
| 3BR | $127,921 | $1,210 | 6.8% | +11.0% | $42,640 |
| 4BR | $177,990 | $1,220 | 4.9% | — | $44,498 |
Market Trends
Home Value History (with trend line)
📊 How Does 40806 Compare?
| Metric | 40806 | Baxter | Kentucky |
|---|---|---|---|
| Home Value | $106,884 | $101,793 | $225,788 |
| 5-Year CAGR | 6.1% | 5.9% | 6.9% |
| Avg Rent | $828 | $824 | - |
| Cap Rate | 6.0% | 6.3% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 40806 (Baxter, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $106,884 |
| Monthly Rent | $828 |
| Price-to-Rent | 10.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 9.3% |
| Cap Rate | 6.0% |
| 5-Year IRR | 12.2% |
📈 Home Appreciation
| 1-Year | -5.9% ▼ |
| 3-Year CAGR | +2.7% ▲ |
| 5-Year CAGR | +6.1% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 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 (6.0%). 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 40806
Population: 1,827
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 40806
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.
Frequently Asked Questions
How do home values compare in Baxter, KY?
Baxter, KY median home values land near $107K. That is reasonable territory for investors looking at $828/mo-per-month rentals.
What type of investing works in Baxter, KY?
For Baxter, KY, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
What do landlords charge for rent in Baxter, KY?
Rental rates in Baxter, KY average $828/mo. Tenant demand and $107K home values make the yield look reasonable by investor standards.
Does Baxter, KY favor landlords or tenants?
KY law landlord-friendly for landlords, and Baxter inherits those rules. Investors should still review local ordinances for rental licensing.
Can I house hack in Baxter, KY?
For house hackers, Baxter, KY is a challenging. The $828/mo rent on a unit helps defray the mortgage on a $107K property.
You know 40806 now. You don’t know where it ranks.
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