Location: Montgomery County, KY | Metro: Bath County, KY
| Unit Size | Monthly FMR |
|---|---|
| Studio | $670 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 40346 presents a nuanced landscape for landlords and small-portfolio investors, with implications that extend beyond the immediate period into the next 12-24 months. The median home value stands at $150,258, indicating a relatively affordable housing market that could attract first-time buyers and investors looking for entry-level opportunities. However, the lack of percentage of listings being reduced and the median days on market (DOM) data suggests a stable market without significant downward pressure on prices.
On the rental side, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is projected to be $900, while the current market rent, according to Census ACS data, is $728. This gap signals potential upward movement in rental prices, aligning with broader economic trends that suggest increasing demand for rental properties as housing affordability challenges persist.
For long-term investors, the setup in ZIP 40346 implies a steady appreciation thesis rather than explosive growth. The stable median home values combined with the growing disparity between FMR and current market rents indicate that property values are likely to rise gradually, driven by rental income potential and the overall health of the local economy. Investors should focus on acquiring properties below the median home value to maximize their potential for capital appreciation and rental yield.
The market's current stability and the projected increase in rental rates offer a balanced approach for investors. Properties can be held for both short-term gains through rental income and longer-term appreciation, making ZIP 40346 a viable option for those seeking consistent returns. Landlords and investors should continue to monitor local economic indicators and rental trends to adjust their strategies accordingly.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.