Union (KY) Investor Pulse Report (2026-Q1)

In Union County, investors hold a significant 24.2% of the Single-Family Residential (SFR) market, totaling 1,003 properties. This highlights a substantial investor presence relative to the total market size of 4,146 SFR homes.

The ownership structure is overwhelmingly dominated by 901 individual investors, who control 812 properties, or 81.0% of the investor-owned portfolio. In contrast, 124 companies own the remaining 213 properties (21.2%), signifying a market built on small-scale, personal investment rather than large corporate holdings.

A defining characteristic of this market is the preference for cash transactions. A remarkable 86.2% of investor-owned properties (865 homes) are held free and clear, compared to only 13.8% (138 homes) that are financed. This low leverage suggests investors have significant equity and financial stability.

The portfolio is heavily focused on generating rental income. A total of 966 properties are classified as rented, which represents 96.3% of all investor-owned homes. This confirms the primary strategy for real estate investing in the area is long-term rental holds.

When comparing entity counts to property counts, the average company landlord holds a slightly larger portfolio (1.7 properties per entity) than the average individual landlord (0.9 properties per entity). This indicates that while individuals are far more numerous, companies tend to scale slightly more.

In the first quarter of 2026, investors demonstrated a remarkable ability to acquire properties below market rates, paying an average of $159,000. This was a full 40.1% less than the $265,660 paid by traditional homeowners, translating to a substantial $106,660 discount per property.

However, this pricing advantage is not consistent throughout the year. The discount fluctuates dramatically, from a massive 56.0% ($130,657) in Q3 2025 to landlords actually paying a 7.2% premium ($11,339) in Q2 2025. This volatility suggests investors are capitalizing on specific opportunities rather than benefiting from a stable, market-wide discount.

Overall price trends indicate a recent cooling in the market. The average landlord acquisition price fell from $152,579 in 2024 to $143,857 in 2025. While this is still higher than the pandemic-era (2020-2023) average of $118,235, it points to a slowdown in price appreciation.

The data for recent quarters shows an average price based on a very low transaction volume, with zero distinct properties recorded as purchased in some periods. This implies the averages are derived from a minimal sample size and should be interpreted with caution as indicators of broad market shifts.

This pricing behavior, combined with an ability to find discounted assets, gives investors a distinct competitive edge and likely contributes to stronger returns compared to an automated valuation (AVM) which reflects broader market prices.

Investors represented a powerful buying force in Union County's housing market during Q4 2025, purchasing 11 of the 34 total SFRs sold. This activity gave them a substantial market share of 32.4% for the quarter.

The entirety of this purchasing activity was driven by small-scale investors. Mom-and-pop landlords (those owning 1-10 properties) accounted for 100% of the 11 acquisitions, with zero properties purchased by mid-size or institutional players.

New entrants and first-time investors were particularly active. The single-property tier saw 15 new entities acquire 10 homes, making up 90.9% of all investor buying activity. This signals a healthy and accessible market for new landlords.

The complete absence of institutional buyers (1000+ properties) is a defining feature of the market. This, coupled with the dominance of the smallest landlord tier, indicates that Union County is a market shaped by local, independent capital rather than large-scale corporate investment.

Beyond the new entrants, only one other transaction was recorded from a small landlord in the 6-10 property tier, further cementing the trend of a market driven from the bottom up.

The investor landscape in Union County is overwhelmingly dominated by small-scale landlords. Mom-and-pop investors, defined as those owning 1-10 properties, collectively control 91.9% of all investor-owned SFRs, a figure that underscores their critical role in providing rental housing.

Single-property landlords form the absolute bedrock of this market. This tier alone accounts for 675 properties, representing 64.2% of the entire investor portfolio. This high concentration demonstrates a fragmented ownership base with a low barrier to entry.

The data directly counters the narrative of large-scale corporate dominance in residential real estate. Institutional investors (1000+ properties) have no footprint in the county, with a 0.0% market share. Even mid-size landlords (11-50 properties) hold a relatively small combined share of just 8.0%.

Progression through the tiers is evident but limited. The portfolio distribution shows landlords expanding from one property to the two-property tier (7.5%), the 3-5 property tier (12.8%), and the 6-10 property tier (7.4%), but very few grow beyond that scale.

This market structure suggests that local knowledge and small-scale operations are the keys to success in Union County, with little to no influence from national institutional capital.

A distinct pattern of ownership structure emerges when analyzing portfolios by size. Individual investors are the primary owners in smaller tiers, while corporate entities become more prevalent as portfolio sizes increase.

The clear crossover point is the 6-10 property tier. At this level, companies own a 57.7% majority of the assets. This trend of corporate prevalence continues into the 11-20 property tier, where companies hold a 56.1% share.

Conversely, individual ownership is most concentrated at the entry level. Individuals own 87.8% of all single-property investor homes and 87.0% of homes in the 3-5 property tier, highlighting their foundational role in the rental market.

This trend likely reflects a common business practice where landlords choose to incorporate as their holdings grow to better manage assets, limit liability, and streamline operations.

Even so, individual ownership persists at higher levels. In the 21-50 property tier, individuals still own a 67.7% majority (21 properties), indicating that a corporate structure is a strategic choice rather than a necessity for all larger-scale landlords in this market.

Investor ownership in Union County is not widespread but is instead intensely focused within a few key geographic areas. The top three zip codes by property count, 42437, 42459, and 42461, collectively contain 947 properties, which is 94.4% of all investor-owned SFRs in the county.

While the 42437 zip code has the highest number of investor properties at 430, the 42461 zip code demonstrates the deepest market penetration. In 42461, investors own 39.4% of the housing stock, meaning nearly two out of every five homes is an investment property.

The zip code 42459 is another critical hub for investment, ranking second for both total count (371 properties) and ownership rate (26.7%). The fact that the same three zip codes lead in both volume and penetration highlights their central importance to the local rental market.

This extreme geographic clustering suggests that investors are targeting very specific neighborhoods, likely driven by factors such as strong rental demand, attractive property prices, or desirable housing types. A detailed property search in these areas would likely reveal further patterns.

Outside of these core areas, investor presence is minimal. The remaining zip codes, 42462 and 42404, have far lower counts of 49 and 7 investor-owned properties, respectively.

Investors in Union County are firmly in an accumulation phase, consistently acquiring more properties than they are selling. This trend was clear in Q1 2026, when they purchased 17 homes while only selling 4, resulting in a net gain of 13 properties and a strong 4.25-to-1 buy/sell ratio.

This aggressive buying posture is not a new phenomenon. It follows a pattern of significant net acquisitions over the past two years. In 2025, investors bought 85 properties and sold just 14, and in 2024, the ratio was even more skewed with 78 buys versus only 6 sells.

While investors remain strong net buyers, the buy/sell ratio has moderated slightly from its peak. The ratio of 13.0x in 2024 decreased to 6.1x in 2025 and 4.25x in Q1 2026. This indicates that while acquisitions remain high, selling activity has seen a small uptick, potentially signaling some profit-taking or portfolio reallocation.

The sustained, positive net acquisition numbers reflect strong investor confidence in the local rental market. This behavior points toward a long-term hold strategy being the dominant approach for landlords in the area.

In line with ownership data, there is no institutional transaction activity to report, confirming that large-scale investors are not currently buying or selling in this market.

Landlords played a pivotal role in the Union County real estate market's liquidity during Q1 2026, participating in 17 of the 54 total SFR transactions. This activity secured them a significant market share of 31.5%.

The transaction volume was heavily concentrated at the smallest end of the investor spectrum. New or single-property landlords (Tier 01) were responsible for the vast majority of activity, conducting 15 of the 17 investor transactions.

These entry-level investors paid an average price of $159,000 per property, a price point that appears advantageous when compared to the broader market, as noted in pricing analysis.

The market shows very little inter-landlord trading, indicating a lack of portfolio churning. Only one of the 15 properties (6.7%) acquired by single-property investors was purchased from another landlord. This suggests new acquisitions are primarily sourced from traditional homeowners or off-market channels.

Activity from larger investors was negligible. A single transaction was recorded from a small-medium landlord (11-20 properties) and one from a small landlord (6-10 properties), with zero transactions from institutional-scale buyers, reinforcing the market's mom-and-pop character.