Real Estate Investing in Cumberland, Kentucky (40823)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40823 (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: 16.1% of homes vacant — above national norms.
- Elevated poverty: 38.7% poverty rate — can affect rent collection.
- Higher unemployment: 9.9% unemployment — tenant risk signal.
- Lower household income: $34,491 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 Cumberland, KY (40823)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 40823 Cumberland
ZIP 40823 offers what many appreciation markets cannot: an affordable basis at $69K and rent support of $783/mo for rehab-driven equity creation in Harlan County.
Investors in 40823 do not buy the market average — they buy the unit they can improve. $69K median pricing and $783/mo comps define the envelope within which the work has to pay.
Regionally, 40823 sits on the affordable end of the Harlan County map. From an investor standpoint, the absolute numbers are modest, the spread between acquisition price and post-rehab value is wider than in turnkey ZIPs.
The 40823 ZIP's demographic trend has been one of stability with upside — population of 3,907, steady renter share, and an incoming cohort that is willing to pay for improved units.
The robust opportunity in 40823 is buying the worst house on the block, fixing it, and renting it at the top of the local band. That is the strategy, repeated.
Here's what matters if you're considering buying a home in Cumberland:
Property Strategy for 40823
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $42,663 | $870 | 14.7% | +16.0% | $21,331 |
| 3BR | $69,577 | $1,140 | 11.8% | +12.4% | $23,192 |
Market Trends
Home Value History (with trend line)
📊 How Does 40823 Compare?
| Metric | 40823 | Cumberland | Kentucky |
|---|---|---|---|
| Home Value | $69,092 | $62,793 | $225,788 |
| 5-Year CAGR | 12.2% | 13.5% | 6.9% |
| Avg Rent | $783 | $819 | - |
| Cap Rate | 8.8% | 10.3% | - |
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 40823 (Cumberland, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $69,092 |
| Monthly Rent | $783 |
| Price-to-Rent | 7.4:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 13.6% |
| Cap Rate | 8.8% |
| 5-Year IRR | 21.0% |
📈 Home Appreciation
| 1-Year | +11.2% ▲ |
| 3-Year CAGR | +12.6% ▲ |
| 5-Year CAGR | +12.2% ▲ |
| 10-Year CAGR | +8.6% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The estimated cap rate (8.8%) 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 40823
Population: 3,907
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 40823
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
Investor Insight: With 1,840 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does buy-rehab-rent-refinance work in Cumberland, KY?
Cumberland, KY BRRRR deals are a strong. With proper buy-side discipline, operators can recycle most of their capital post-refinance.
How close is Cumberland, KY to meeting the 1% rule?
The 1% rule in Cumberland, KY is reasonable to achieve. Rent-to-price at the median ($783/mo on $69K) lands around 1.13%.
How much should I expect to pay for a home in Cumberland, KY?
Cumberland, KY home values average about $69K. That price point suits investors targeting rentals with $783/mo in monthly income.
How does Cumberland, KY rate as a rental market?
Our data puts Cumberland, KY at 5.0/5 for investability. Home prices of $69K and rents around $783/mo create a solid backdrop for investor activity.
What does house hacking look like in Cumberland, KY?
House hacking works an attractive in Cumberland, KY. Rents of $783/mo against $69K acquisition make the strategy solid for owner-occupants.
You know 40823 now. You don’t know where it ranks.
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