Real Estate Investing in Farmington, Kentucky (42040)
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Should you buy in 42040 (Farmington, KY)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 18.8% of homes vacant — above national norms.
• 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 Farmington, KY (42040)?
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Market Analysis: 42040 Farmington
Investors eyeing 42040 need to respect the fundamentals at play. Home values of $202K come alongside slower price movement and elevated management overhead.
The 42040 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Within KY, ZIP 42040 trails on several market indicators that neighboring Graves County submarkets outperform. The gap is real and significant enough to shape underwriting.
The demographic picture in 42040 includes headwinds that any investor should price in. Income distribution skews lower than Farmington averages, and tenant stability requires active management.
The right play in 42040 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 Farmington:
Market Trends
Home Value History (with trend line)
📊 How Does 42040 Compare?
| Metric | 42040 | Farmington | Mayfield, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $201,909 | $201,909 | N/A | $225,788 |
| 5-Year CAGR | 7.8% | 7.8% | N/A | 6.9% |
| Avg Rent | $891 | $891 | N/A | - |
| Cap Rate | 3.4% | 3.4% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 42040 (Farmington, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $201,909 |
| Monthly Rent | $891 |
| Price-to-Rent | 18.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.3% |
| Cap Rate | 3.4% |
| 5-Year IRR | 11.2% |
📈 Home Appreciation
| 1-Year | +11.5% ▲ |
| 3-Year CAGR | +7.4% ▲ |
| 5-Year CAGR | +7.8% ▲ |
| 10-Year CAGR | +9.7% ▲ |
🏠 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 (3.4%). 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 42040
Population: 983
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
Frequently Asked Questions
Are rents high in Farmington, KY?
Rents in Farmington, KY run near $891/mo. Compared with median home prices of $202K that produces solid gross yields for typical rentals.
How expensive is real estate in Farmington, KY?
The median home value in Farmington, KY is roughly $202K. That puts it reasonable relative to the KY statewide average.
Is Farmington in KY worth investing in?
Investors tracking Farmington, KY will find a 3.0/5 rating supported by $202K median home values and $891/mo rents. That profile suits long-term holders targeting even-keeled returns.
Are there empty rentals in Farmington, KY?
Farmington, KY sees elevated vacancy, which is reasonable relative to the broader KY rental market.
Is Farmington, KY landlord-friendly?
KY law landlord-friendly for landlords, and Farmington inherits those rules. Investors should still review local ordinances for rental licensing.
You know 42040 now. You don’t know where it ranks.
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How 42040 ranks in Mayfield, KY
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