Olive Hill is home to the best residential real estate investment market in Kentucky.
The 41164 zip code in Olive Hill presents the greatest opportunity for the best real estate investments among the 3,784 individual real estate markets in Kentucky we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Kentucky
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Olive Hill | 100 | 2.6 | 50% |
| 2 | Edmonton | 98.9 | 2.9 | 55% |
| 3 | Russell Springs | 95.8 | 3.0 | 53% |
| 4 | Owingsville | 94.4 | 3.1 | 52% |
| 5 | Beattyville | 93.5 | 2.8 | 62% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Kentucky.
1. Olive Hill
We've identified the 41164 zip code in Olive Hill as Kentucky's best real estate investment market. Here's why.
🔎 Key data about Olive Hill (41164)
| Data point | Value | Rank in state (of 3,784 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $139,330[1] | 31st lowest |
| Five-year appreciation | 50%[2] | 21st highest |
| Household income | $53,579[3] | 134th highest |
| Affordability ratio | 2.6 | 25th most affordable |
| Five-year population growth | 1.6%[4] | 68th highest |
| Unemployment rate | 4.4%[5] | 10th lowest |
| Property taxes | $617[6] | 6th lowest |
| Educational attainment | 15%[7] | 122nd highest |
Olive Hill (zip code 41164) is the best residential real estate investment market in Kentucky. It has the 21st highest property value appreciation among markets we evaluated, with a 50% appreciation of the typical property over the last five years.
Olive Hill is the 25th most affordable market among the 3,784 Kentucky markets we evaluated, with an affordability ratio of 2.6.
2. Edmonton
The 42129 zip code in Edmonton is the runner-up spot for the best real estate investments in Kentucky.
🔎 Key data about Edmonton (42129)
| Data point | Value | Rank in state (of 3,784 markets) |
|---|---|---|
| InvestScore | 98.9 | 2nd highest |
| Typical property value | $157,355[1] | 55th lowest |
| Five-year appreciation | 55%[2] | 8th highest |
| Household income | $53,609[3] | 133rd highest |
| Affordability ratio | 2.9 | 42nd most affordable |
| Five-year population growth | 3.7%[4] | 26th highest |
| Unemployment rate | 2.3%[5] | lowest |
| Property taxes | $734[6] | 17th lowest |
| Educational attainment | 14%[7] | 131st highest |
The 42129 zip code in Edmonton features a typical property value of $157,355, the 55th lowest in the state.
Property values have appreciated 55% over the past five years, the 8th highest increase among evaluated markets in the state. Edmonton homes have an affordability ratio of 2.9, the 42nd most affordable in the state.
3. Russell Springs
The 42642 zip code in Russell Springs comes in at No. 3 in our ranking of the best residential real estate investment markets in Kentucky.
🔎 Key data about Russell Springs (42642)
| Data point | Value | Rank in state (of 3,784 markets) |
|---|---|---|
| InvestScore | 95.8 | 3rd highest |
| Typical property value | $157,098[1] | 54th lowest |
| Five-year appreciation | 53%[2] | 12th highest |
| Household income | $52,633[3] | 137th highest |
| Affordability ratio | 3.0 | 50th most affordable |
| Five-year population growth | 3.9%[4] | 21st highest |
| Unemployment rate | 2.3%[5] | lowest |
| Property taxes | $847[6] | 38th lowest |
| Educational attainment | 16%[7] | 119th highest |
With a typical property value of $157,098, Russell Springs's 42642 zip code features the 54th lowest property values in the state.
Russell Springs homes have an affordability ratio of 3.0, the 50th most affordable among the markets we evaluated.
4. Owingsville
The 40360 zip code in Owingsville ranks No. 4 among Kentucky's residential real estate investment markets.
🔎 Key data about Owingsville (40360)
| Data point | Value | Rank in state (of 3,784 markets) |
|---|---|---|
| InvestScore | 94.4 | 4th highest |
| Typical property value | $170,184[1] | 66th lowest |
| Five-year appreciation | 52%[2] | 14th highest |
| Household income | $55,193[3] | 14th highest |
| Affordability ratio | 3.1 | 58th most affordable |
| Five-year population growth | 7.4%[4] | 5th highest |
| Unemployment rate | 2.3%[5] | lowest |
| Property taxes | $831[6] | 34th lowest |
| Educational attainment | 13%[7] | 134th highest |
Property values in Owingsville's 40360 zip code have seen the 14th highest increase among evaluated markets in the state, with an appreciation of 52% over the past five years.
Owingsville's affordability ratio of 3.1 makes it the 58th most affordable among the 3,784 markets we evaluated.
5. Beattyville
The 41311 zip code in Beattyville rounds out our top five residential real estate investment markets in Kentucky.
🔎 Key data about Beattyville (41311)
| Data point | Value | Rank in state (of 3,784 markets) |
|---|---|---|
| InvestScore | 93.5 | 5th highest |
| Typical property value | $110,615[1] | 11th lowest |
| Five-year appreciation | 62%[2] | 2nd highest |
| Household income | $39,158[3] | 2nd highest |
| Affordability ratio | 2.8 | 35th most affordable |
| Five-year population growth | -0.7%[4] | 143rd highest |
| Unemployment rate | 2.3%[5] | lowest |
| Property taxes | $691[6] | 14th lowest |
| Educational attainment | 11%[7] | 143rd highest |
Property values in Beattyville's 41311 zip code rose 62% over the last five years, ranking the city 2nd highest among evaluated markets in Kentucky.
Beattyville homes have an affordability ratio of 2.8, the 35th most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Kentucky.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Kentucky
To determine the best real estate investments in Kentucky we evaluated 3,784 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Kentucky.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
