Real Estate Investing in Middlesboro, Kentucky (40965)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40965 (Middlesboro, KY)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 17.7% of homes vacant — above national norms.
- Elevated poverty: 23.7% poverty rate — can affect rent collection.
- Lower household income: $30,000 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 Middlesboro, KY (40965)?
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Market Analysis: 40965 Middlesboro
ZIP 40965 in Middlesboro, KY carries a significant set of headwinds. Home values near $113K and rents of $837/mo sit inside a market where underwriting has to be tight.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $113K asset, 40965 is the wrong submarket. If the plan prices in friction, the yield can still work.
The gap between 40965 and stronger Middlesboro ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
The 40965 ZIP's population of 11,698 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
looks to the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Middlesboro:
Property Strategy for 40965
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $86,926 | $930 | 7.7% | +8.7% | $43,463 |
| 3BR | $147,482 | $1,210 | 5.9% | +8.3% | $49,161 |
| 4BR | $215,893 | $1,380 | 4.6% | +8.3% | $53,973 |
Market Trends
Home Value History (with trend line)
📊 How Does 40965 Compare?
| Metric | 40965 | Middlesboro | Middlesborough, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $113,413 | $113,413 | N/A | $225,788 |
| 5-Year CAGR | 4.6% | 4.6% | N/A | 6.9% |
| Avg Rent | $837 | $837 | N/A | - |
| Cap Rate | 5.8% | 5.8% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 40965 (Middlesboro, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $113,413 |
| Monthly Rent | $837 |
| Price-to-Rent | 11.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.9% |
| Cap Rate | 5.8% |
| 5-Year IRR | 10.3% |
📈 Home Appreciation
| 1-Year | +6.9% ▲ |
| 3-Year CAGR | +2.0% ▲ |
| 5-Year CAGR | +4.6% ▲ |
| 10-Year CAGR | +3.6% ▲ |
🏠 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 (5.8%). 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 40965
Population: 11,698
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 40965
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 are home prices like in Middlesboro, KY?
The median home value in Middlesboro, KY is roughly $113K. That puts it reasonable relative to the KY statewide average.
Do landlords face vacancy issues in Middlesboro, KY?
Expect elevated vacancy in Middlesboro, KY. Rents at $837/mo are absorbed by the tenant base without meaningful lag.
Are landlord laws favorable in Middlesboro, KY?
Rental owners in Middlesboro, KY deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.
Is Middlesboro, KY good for house hacking?
The house hack math a challenging in Middlesboro, KY. Owner-occupant buyers benefit from the $837/mo rents and $113K home values.
What kind of tenants rent in Middlesboro, KY?
Tenant quality in Middlesboro, KY ranks as solid. Landlords generally report steady occupancy at market rents of $837/mo.
You know 40965 now. You don’t know where it ranks.
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How 40965 ranks in Middlesborough, KY
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