Real Estate Investing in Cumberland, Kentucky (40855)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40855 (Cumberland, KY)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
Rare combination of both appreciation and cash flow. These markets don't last long — worth serious consideration.
- High vacancy: 36.5% of homes vacant — above national norms.
- Elevated poverty: 20.5% poverty rate — can affect rent collection.
- Lower household income: $27,778 median — tenant affordability is tighter.
• Limited market data — this is a very small market; averages are built from few observations and can swing widely. • Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Cumberland, KY (40855)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 40855 Cumberland
Within Harlan County, the 40855 ZIP shows a lower entry point around $56K. On the rental side, operators who can improve stock here typically see outsized uplift.
In 40855, the deal is made on the buy and on the capex. substantial entry prices of $56K leave room in the budget for light-to-medium renovation, with rent lift to match.
Across KY, value-add opportunity tends to concentrate where housing stock is older and entry prices are below the state median. ZIP 40855 clocks in at both traits clearly.
A renter-heavy, wage-earner demographic anchors 40855. Value-add players rely on that mix — the 33% share is both the tenant source and the buyer pool for future owner-occupied exits.
Flippers with local expertise can do well in 40855. Out-of-state investors should partner with boots-on-the-ground operators or skip the ZIP entirely.
Here's what matters if you're considering buying a home in Cumberland:
Market Trends
Home Value History (with trend line)
📊 How Does 40855 Compare?
| Metric | 40855 | Cumberland | Kentucky |
|---|---|---|---|
| Home Value | $55,519 | $62,793 | $225,788 |
| 5-Year CAGR | 14.1% | 13.5% | 6.9% |
| Avg Rent | $891 | $819 | - |
| Cap Rate | 12.5% | 10.3% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 40855 (Cumberland, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $55,519 |
| Monthly Rent | $891 |
| Price-to-Rent | 5.2:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 19.3% |
| Cap Rate | 12.5% |
| 5-Year IRR | 26.7% |
📈 Home Appreciation
| 1-Year | +4.2% ▲ |
| 3-Year CAGR | +16.1% ▲ |
| 5-Year CAGR | +14.1% ▲ |
| 10-Year CAGR | +10.2% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (12.5%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 40855
Population: 782
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
🎓 Nearby Colleges & Universities
Investor Insight: With 1,840 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What kind of market is Cumberland, KY for investors?
Cumberland, KY rates 5.0/5 for investability. With median values at $56K and rents near $891/mo, the market offers reasonable fundamentals for rental investors.
How strong are rents in Cumberland, KY?
Expect rents around $891/mo per month in Cumberland, KY. With home values at $56K, the yield math works out to reasonable levels for rental investors.
What is the smart move for investors in Cumberland, KY?
A value-add and BRRRR deals strategy Cumberland, KY best. The market produces predictable results for that approach at the $56K price point.
How close is Cumberland, KY to meeting the 1% rule?
Hitting the 1% rule in Cumberland, KY is realistic given the 1.60% average rent-to-price. Most value-add properties push well above that line.
Can you recycle capital via BRRRR in Cumberland, KY?
BRRRR in Cumberland, KY is a strong. The interplay of $56K values and $891/mo rents creates reasonable refinance conditions.
You know 40855 now. You don’t know where it ranks.
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