Real Estate Investing in Barbourville, Kentucky (40906)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40906 (Barbourville, KY)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 17.4% of homes vacant — above national norms.
- 1-year downturn: Values declined 11.3% in the last year.
- Elevated poverty: 33.1% poverty rate — can affect rent collection.
- Lower household income: $22,221 median — tenant affordability is tighter.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Barbourville, KY (40906)?
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Market Analysis: 40906 Barbourville
Not every below-median market is a bargain. Barbourville's 40906 ZIP posts signals that favor experienced operators who can absorb the risk $139K pricing implies.
Rent of $828/mo on a $139K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 40906 sits below the stated 0.0% once reality is priced in.
Looking more closely, 40906 offers a low basis, the region around Barbourville has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Employment concentration in 40906 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 40906 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 Barbourville:
Property Strategy for 40906
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $104,459 | $920 | 6.3% | +8.5% | $52,229 |
| 3BR | $159,433 | $1,100 | 5.0% | +8.5% | $53,144 |
| 4BR | $199,116 | $1,530 | 5.5% | +10.0% | $49,779 |
Market Trends
Home Value History (with trend line)
📊 How Does 40906 Compare?
| Metric | 40906 | Barbourville | London, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $139,280 | $139,280 | N/A | $225,788 |
| 5-Year CAGR | 3.3% | 3.3% | N/A | 6.9% |
| Avg Rent | $828 | $828 | N/A | - |
| Cap Rate | 4.6% | 4.6% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 40906 (Barbourville, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $139,280 |
| Monthly Rent | $828 |
| Price-to-Rent | 14.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.1% |
| Cap Rate | 4.6% |
| 5-Year IRR | 7.9% |
📈 Home Appreciation
| 1-Year | -11.3% ▼ |
| 3-Year CAGR | +0.3% ▲ |
| 5-Year CAGR | +3.3% ▲ |
| 10-Year CAGR | +5.2% ▲ |
🏠 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 (4.6%). 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 40906
Population: 10,560
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 40906
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
Frequently Asked Questions
What is the typical rental rate in Barbourville, KY?
The typical rental in Barbourville, KY commands about $828/mo monthly. That rent profile steady cash flow against the $139K purchase basis.
Are there empty rentals in Barbourville, KY?
Barbourville, KY sees elevated vacancy, which is reasonable relative to the broader KY rental market.
What is the investability score for Barbourville, KY?
Yes - Barbourville, KY a 3.0/5 investability score. With $139K home prices against $828/mo monthly rent, the market delivers a reasonable entry point for new investors.
Is Barbourville, KY good for landlords?
Barbourville, KY falls under KY landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
How qualified is the tenant pool in Barbourville, KY?
Expect a solid tenant pool in Barbourville, KY. The rental market absorbs $828/mo rents without meaningful friction.
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