Real Estate Investing in Buffalo, Kentucky (42716)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 42716 (Buffalo, 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: 13.2% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Buffalo, KY (42716)?
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Market Analysis: 42716 Buffalo
Not every below-median market is a bargain. Buffalo's 42716 ZIP records signals that favor experienced operators who can absorb the risk $222K pricing implies.
Distressed markets are won on execution, not on spreadsheets. ZIP 42716 registers the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
Statewide comparisons place 42716 among KY's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Demographically, 42716 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
The 42716 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Buffalo:
Property Strategy for 42716
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $165,428 | $970 | 4.2% | +10.8% | $82,714 |
| 3BR | $230,408 | $1,360 | 4.2% | +10.8% | $76,803 |
Market Trends
Home Value History (with trend line)
📊 How Does 42716 Compare?
| Metric | 42716 | Buffalo | Elizabethtown-Fort Knox, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $222,035 | $222,035 | N/A | $225,788 |
| 5-Year CAGR | 7.6% | 7.6% | N/A | 6.9% |
| Avg Rent | $873 | $873 | N/A | - |
| Cap Rate | 3.1% | 3.1% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 42716 (Buffalo, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $222,035 |
| Monthly Rent | $873 |
| Price-to-Rent | 21.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.7% |
| Cap Rate | 3.1% |
| 5-Year IRR | 10.7% |
📈 Home Appreciation
| 1-Year | +5.2% ▲ |
| 3-Year CAGR | +6.9% ▲ |
| 5-Year CAGR | +7.6% ▲ |
| 10-Year CAGR | +8.5% ▲ |
🏠 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 (3.1%). 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 42716
Population: 1,640
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
Frequently Asked Questions
What do rentals go for in Buffalo, KY?
Rental rates in Buffalo, KY average $873/mo. Tenant demand and $222K home values make the yield look reasonable by investor standards.
What is the typical renter like in Buffalo, KY?
Buffalo, KY offers a consistent renter base at the $873/mo rent level. Tenant turnover is reasonable for well-managed properties.
How should investors approach Buffalo, KY?
Most investors in Buffalo, KY run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
Is Buffalo, KY a good market for buy-and-hold investors?
Investors tracking Buffalo, KY will find a 3.0/5 rating supported by $222K median home values and $873/mo rents. That profile suits long-term holders targeting predictable returns.
Is KY a landlord-friendly state?
The landlord environment in Buffalo, KY is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
You know 42716 now. You don’t know where it ranks.
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How 42716 ranks in Elizabethtown-Fort Knox, KY
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