Daviess (KY) Investor Pulse Report (2025-Q4)

In a dramatic shift from previous quarters, landlord acquisition activity completely ceased in Q4 2025. Investors purchased zero of the 19 SFR properties that sold in Daviess County during the quarter.

This halt in activity was uniform across all investor sizes. Mom-and-pop landlords (1-10 properties), who form the backbone of the local market, made no new purchases.

Likewise, mid-size and larger investors were also inactive, with zero properties acquired across Tiers 05 through 08.

The absence of new purchases means no new landlords entered the market in Q4, a stark contrast to previous periods where new, single-property investors were common.

This sudden stop in investor buying represents a significant market event, contrasting sharply with the consistent acquisition activity seen in the first three quarters of 2025 and throughout 2024.

Before purchasing activity paused, landlords in Daviess County consistently acquired properties at a significant discount compared to traditional homeowners. In Q3 2025, landlords paid an average of $216,425, which was 20.0% less than the homeowner average of $270,384—a savings of $53,959 per property.

This pricing advantage was not a one-time event but a consistent trend throughout the year. In Q2 2025, the discount was even larger at 20.9% ($52,192), and in Q1 it was 16.3% ($41,712).

The data reveals a stark price appreciation trend when comparing recent prices to the pandemic era. The average landlord acquisition price of $143,045 between 2020-2023 is substantially lower than the prices observed in 2025, indicating significant market value growth.

Despite the consistent discounts achieved, all landlord purchasing activity came to a complete stop in the last two quarters of available data, signaling a major shift in market dynamics or investor sentiment.

Analysis pending.

The investor landscape in Daviess County is defined by small-scale landlords. Mom-and-pop investors (owning 1-10 properties) dominate the market, collectively holding 87.5% of all investor-owned SFRs.

First-time or single-property landlords are the most significant group, owning 2,100 properties, which accounts for 54.3% of the entire investor portfolio. This highlights the accessible, 'Main Street' nature of the local rental market.

The distribution skews heavily toward the smallest tiers. Following single-property owners, landlords with 3-5 properties hold the next largest share at 16.5% (636 properties).

As portfolio sizes increase, ownership concentration drops off sharply. Mid-size landlords (11-100 properties) collectively own just 12.1% of the inventory.

Notably, there is no institutional-scale investment in the county. The largest investors (Tier 09, 1,000+ properties) have a 0.0% market share, underscoring the complete absence of large corporate landlords.

Individual investors overwhelmingly control every segment of the Daviess County rental market, from single-property owners to the largest local portfolios. Unlike in larger markets, there is no crossover point where companies become the majority owners.

In the single-property tier, individuals own 1,973 homes (93.0%), establishing a foundation of 'Main Street' ownership from the very beginning.

This pattern of individual dominance persists even as portfolios grow. In the 'small landlord' tiers of 3-5 and 6-10 properties, individuals maintain control with 92.0% and 89.7% ownership, respectively.

The trend continues into the mid-size tiers. For landlords with 21-50 properties, individuals own 163 homes (97.0%), leaving only 5 for companies.

Even at the highest local level of 51-100 properties, individual ownership is near-total at 98.8% (83 properties), demonstrating that the market's growth is driven by private individuals scaling up, not corporations.

The vast majority of real estate investor activity in Daviess County is concentrated in just two geographic areas. The 42301 and 42303 zip codes together are home to 3,245 of the 3,531 investor-owned properties, representing a 91.9% concentration.

The 42301 zip code is the epicenter of investment, with 1,778 landlord-owned properties. It also boasts the highest investor penetration rate in the county at 14.5%.

Following close behind, the 42303 zip code holds 1,467 investor properties and has a significant ownership rate of 12.5%, making it the second key hub for rental housing.

Other areas have a much smaller investor footprint. For example, the 42376 zip code has only 107 investor properties (9.6% rate), and 42366 has just 88 (7.0% rate).

The regions with the highest counts of investor properties are also the ones with the highest ownership percentages, indicating that investors are clustered in the same core areas rather than being dispersed evenly across the county.

The recent halt in investor purchasing marks a sharp reversal from a period of strong and sustained acquisition. Through the first three quarters of 2025, landlords were decisive net buyers, purchasing 203 properties while selling only 58, for a net increase of 145 homes.

This buying momentum was consistent throughout the year before the pause. In Q3 2025, investors bought 89 properties and sold only 24, and in Q2, they bought 74 while selling just 18.

The acquisition trend was even more pronounced in the prior year. Throughout 2024, landlords purchased 299 properties and sold only 56, resulting in a net portfolio expansion of 243 properties.

As there is no institutional (1,000+ tier) ownership in Daviess County, all of this transaction activity was driven by small and mid-size individual and company landlords.

The data clearly shows a market that was in an expansion phase, driven by smaller investors, which makes the sudden stop in Q4 2025 a particularly noteworthy shift in market behavior.

Q4 2025 was marked by a complete absence of investor transactions in Daviess County. Landlords were involved in zero of the 22 SFR transactions that occurred, representing a 0% share of market activity.

This inactivity was consistent across all investor sizes. Mom-and-pop landlords (Tiers 01-04), who represent the overwhelming majority of owners, conducted zero transactions during the quarter.

Similarly, mid-size investors also remained on the sidelines, with no buying or selling activity recorded.

Consequently, there was no inter-landlord trading, where one investor sells a property to another. This component of market liquidity was entirely frozen.

The complete cessation of transactions for an entire quarter, especially after a period of being strong net buyers, suggests a significant, albeit potentially temporary, shift in local investor strategy or market conditions.