Securing a single-family home on 3.2 private, wooded acres equipped with a pond, a detached garage, a separate workshop, and public water infrastructure for under $130,000 represents an increasingly scarce opportunity in Eastern Kentucky’s rural housing market. Located at 2450 S State Highway 233 in Gray, Kentucky (ZIP 40734, Knox County), this unimproved residential property features a 1,000-square-foot ranch-style home offered at an asking price of $129,900.
Offered at $129.90 per square foot of residential living space and $40,593.75 per acre, 2450 S State Highway 233 strikes a compelling balance between privacy and practical utility. The property includes 3 bedrooms, 1 full bathroom, an eat-in kitchen, updated flooring across primary living areas, a private septic system, public water supply, central heat pump climate control, and a long set-back driveway. Outside, the parcel features mature hardwood shade, an on-site pond, a 1-car detached garage, and an independent workshop building.
Originally listed on July 24, 2026, for $129,900, the property entered contingent contract status on August 2, 2026 after just nine days on the market. This rapid absorption underscores strong local demand for sub-$150,000 acreage listings in the Knox/Laurel County area.
This real estate analysis evaluates 2450 S State Highway 233 across its financial metrics, tax assessment structure, land and water features, home layout, outbuilding utility, comparative replacement value, target buyer profiles, and essential due diligence steps.
Property Overview and Specification Summary
Reviewing public listing disclosures, land records, and tax filings establishes the baseline parameters for this Knox County asset.
| Property Parameter | Official Listing Data & Public Records |
|---|---|
| Street Address | 2450 S State Highway 233, Gray, KY 40734 |
| County / Region | Knox County / Corbin-Gray Regional Market |
| Parcel Identification Number | 029000006100 |
| Current Asking Price | $129,900 (Contingent Status as of August 2, 2026) |
| Original List Date | July 24, 2026 (Listed at $129,900) |
| Total Land Footprint | 3.20 Acres (139,392 Square Feet) |
| Price Per Acre | $40,593.75 per acre |
| Price Per Square Foot of Land | $0.93 per sq. ft. |
| Finished Living Area | 1,000 Sq. Ft. (Finished Above Ground) |
| Price Per Square Foot of House | $129.90 per sq. ft. ($130/sq. ft.) |
| Bedrooms / Bathrooms | 3 Bedrooms / 1 Full Bathroom |
| Architectural Style & Stories | One-Story Ranch |
| Construction Envelope | Vinyl Siding over Concrete Block Foundation (No Basement) |
| Heating & Cooling Systems | Electric Heat Pump / Central Air Conditioning |
| Flooring Materials | Laminate, Vinyl, Carpet (Additional Uninstalled Flooring Included) |
| Outbuilding Infrastructure | Detached 1-Car Garage + Independent Workshop |
| Water Supply & Wastewater | Public Water Supply / Private Septic Tank System |
| Waterfront Features | On-Site Water View / Private Pond |
| County Tax Assessed Value | $46,000 |
| Annual Property Taxes | $35.00 per year ($2.92 per month) |
| Homeowners Association (HOA) | None ($0.00 / month) |
| Listing Terms & MLS ID | Imagine MLS #26019683 |
The Numbers and Detailed Price Analysis
Evaluating a 3.2-acre residential parcel requires separating underlying land value from structural improvements while examining annual carrying overhead.
Per-Acre and Structural Valuation Breakdown
At an asking price of $129,000 across 3.20 acres and 1,000 square feet of finished living space, the primary mathematical metrics yield the following indicators:
- Price Per Acre: $129,900 ÷ 3.20 acres = $40,593.75 per acre
- Total Land Area in Square Feet: 3.20 acres × 43,560 sq. ft. = 139,392 square feet
- Price Per Square Foot of Land: $129,900 ÷ 139,392 sq. ft. = $0.93 per sq. ft.
- Price Per Building Square Foot: $129,900 ÷ 1,000 sq. ft. = $129.90 per sq. ft.
In Knox County, small rural parcels (3 to 5 acres) featuring direct highway frontage, cleared building envelopes, pond excavations, public water drops, and private septic installations typically carry baseline land values between $12,000 and $18,000 per acre.
Assigning a conservative land-and-site value of $15,000 per acre to the 3.2-acre footprint ($48,000 total land allocation) leaves the residual purchase price attributed to the 1,000 sq. ft. home, block foundation, heat pump, public water drop, septic tank, 1-car garage, and workshop at just $81,900—or $81.90 per square foot for the building shell and outbuilding infrastructure.
Tax Assessment Mechanics and Low Carrying Overhead
Public property tax records for Knox County outline an exceptionally low carrying cost structure:
- County Tax Assessed Value: $46,000
- Current List Price: $129,900
- Assessment Ratio: Assessed at 35.41% of current asking price
- Annual Property Tax Bill: $35.00 per year
- Monthly Property Tax Burden: $35 ÷ 12 months = $2.92 per month
- Effective Annual Tax Rate (on List Price): ($35 ÷ $129,900) × 100 = 0.027%
- Homeowners Association Dues: $0.00 per month
With property taxes averaging under $3.00 per month and zero HOA dues, holding carrying costs are virtually nonexistent. A buyer financing 80% ($103,920 loan amount at a hypothetical 6.5% interest rate) would see principal and interest payments of approximately $657 per month, resulting in a total monthly housing carrying cost under $750 per month before homeowner insurance.
Land, Acreage, and Water Features Analysis
The physical land footprint surrounding 2450 S State Highway 233 provides privacy, agricultural potential, and natural water features.
Setback Privacy and Long Driveway Access
The parcel is oriented along South State Highway 233, featuring a long, private driveway that sets the home back from the main roadway.
- Acoustic and Visual Buffer: The deep setback, combined with mature shade trees, isolates the residence from passing highway traffic.
- Topography & Elevation: The lot consists of rolling terrain with clear sightlines across the private acreage.
- Agricultural & Livestock Utility: Listed as permitting horses, the 3.2-acre footprint provides sufficient space for rotational pasture, small livestock fencing, poultry coops, or raised vegetable gardens.
On-Site Pond and Drainage Characteristics
A primary feature of the 3.2-acre lot is the private pond situated within view of the main home site.
- Recreational & Livestock Value: The pond acts as a natural water source for livestock, property irrigation, or local wildlife attraction.
- Site Drainage: The presence of a pond indicates natural low-point water retention on the parcel. Buyers should verify that surface runoff drains appropriately away from the house foundation block walls during seasonal heavy rain events.
Home Infrastructure, Layout, and Outbuildings
The single-story ranch home provides a compact 1,000-square-foot footprint designed for efficient main-level living.
Interior Layout and Finish Condition
- Floor Plan Configuration: Single-story living featuring 3 dedicated bedrooms, 1 full bathroom, a central living room, and an eat-in kitchen.
- Flooring Status: The listing notes that updated laminate and vinyl flooring have been installed throughout the primary common living areas. Uninstalled matching flooring materials are included with the sale to allow the new owner to finish the bedroom floors.
- HVAC Infrastructure: Climate control is supplied by a central electric heat pump system paired with central air conditioning, eliminating reliance on window units or space heaters.
- Appliance Package: Includes a range, refrigerator, and dishwasher, alongside main-level washer and electric dryer hookups.
- Accessibility: Designed with a single-level ground entry and accessible interior hallway clearances.
Outbuilding Package: Detached Garage and Independent Workshop
A major value driver for this property is its dual outbuilding setup:
- Detached 1-Car Garage: Provides covered vehicle parking, protecting automobiles from winter weather and summer UV exposure.
- Independent Workshop Building: Offers dedicated square footage for woodworking, mechanical repairs, tool storage, or craft projects without taking up vehicle space in the main garage.
Comparative Value Analysis: Subject Property vs. Raw Land Development
To measure the value proposition of $129,900, consider a hypothetical cost comparison between acquiring 2450 S State Highway 233 and purchasing a raw 3.2-acre lot in Knox County to build an equivalent homestead from scratch.
| Development Component | Raw Land New Build (Est.) | 2450 S State Highway 233 (Actual) |
|---|---|---|
| 3.2-Acre Land Footprint | $25,000 ($7,812/acre) | Included ($129,900 total list price) |
| Pond Excavation & Grading | $8,000 | Included (Established on-site pond) |
| Long Gravel Driveway Construction | $6,000 | Included (Gravel driveway in place) |
| Public Water Service Hookup | $3,500 | Included (Active public water meter) |
| Septic System Installation | $11,000 | Included (Permitted septic system) |
| Electrical Drop & Meter Base | $3,000 | Included (Grid power connected) |
| 1,000 Sq. Ft. Ranch House ($110/sq ft) | $110,000 | Included (1,000 sq ft vinyl/block home) |
| Detached Garage & Workshop | $22,000 | Included (1-car garage + workshop) |
| ESTIMATED TOTAL CAPITAL INVESTMENT | $188,500 | $129,900 |
| IMPLIED CAPITAL SAVINGS | — | $58,600 (31.1% Capital Savings) |
Analytical Takeaway
Developing an equivalent 1,000 sq. ft. home with a pond, long driveway, utilities, garage, and workshop on 3.2 acres in Knox County costs approximately $188,500. Acquiring 2450 S State Highway 233 for $129,900 provides established infrastructure at a ~$58,600 (31.1%) discount compared to raw land construction, leaving capital to complete the bedroom flooring installations.
Key Advantages and Potential Drawbacks
An objective evaluation requires weighing property strengths against structural and administrative realities.
Key Advantages
- Sub-$130K Entry Price: Offered at $129,900 ($130/sq. ft.), placing it below regional median home prices.
- 3.2 Private Acres with Pond: Generous land footprint with mature woods, deep road setback, and a private pond.
- Dual Outbuilding Package: Includes both a 1-car detached garage and an independent workshop building.
- Extremely Low Property Taxes: Annual taxes total just $35 per year ($2.92/month) with zero HOA fees.
- Modern Climate Control: Central electric heat pump and central air conditioning installed.
- Public Water Utility: Connected to public water, avoiding the risk and drilling costs of private wells.
Potential Drawbacks and Limitations
- Single Full Bathroom: A 3-bedroom floor plan served by only 1 full bathroom may create morning bottlenecks for larger households.
- Incomplete Bedroom Flooring: Requires the buyer or contractor to install the included flooring in the bedroom spaces before full occupancy.
- Crawl Space / Block Foundation Inspection: Built on a concrete block foundation without a basement; sub-floor moisture levels should be verified.
- Unspecified Age Basis: Public listing data records the build year as “Built in —-” (unspecified), requiring a structural home inspection to verify framing age and electrical panel capacity.
Target Buyer Profiles: Who Fits This Property Best?
Matching property characteristics with buyer profiles clarifies who can extract maximum utility from 2450 S State Highway 233.
| Buyer Category | Profile Characteristics | Fit Assessment |
|---|---|---|
| First-Time Homebuyers & Budget Builders | Buyers seeking an affordable, move-in-ready home with minor cosmetic flooring projects and low monthly carrying costs. | Ideal Fit |
| Hobbyists, Mechanics & Craftsmen | Purchasers requiring separate workshop and garage space for vehicle restoration, woodworking, or tool storage. | Ideal Fit |
| Small Homesteaders & Animal Owners | Buyers wanting 3.2 acres for horses, livestock, gardening, and natural pond water access without HOA rules. | Ideal Fit |
| Buy-and-Hold Rental Investors | Investors seeking a low-tax ($35/yr) single-family rental asset in the Corbin/Gray market. | Ideal Fit |
| Large Families Needing 2+ Bathrooms | Families requiring multiple bathrooms without undertaking plumbing additions. | Unfavorable Fit |
Essential Buyer Due Diligence Checklist
Prospective purchasers (or backup offer submitters) should complete the following technical verification steps prior to closing:
- Septic System Inspection: Hire a licensed Kentucky septic contractor to pump the septic tank, inspect structural baffles, and evaluate drain field absorption lines.
- Foundation & Crawl Space Audit: Retain a licensed home inspector to check the concrete block foundation walls, sill plates, floor joists, and crawl space vapor barrier.
- HVAC Performance Test: Have a certified technician service and test the electric heat pump and central air unit to verify compressor health and duct integrity.
- Pond Risk & Drainage Evaluation: Inspect the pond dam/banks during heavy rain to confirm proper overflow drainage away from the home and outbuildings.
- Verify Electrical Panel Amperage: Confirm that the main circuit breaker panel provides 100-amp or 200-amp service adequate for the home and workshop power tools.
Final Verdict
2450 S State Highway 233 in Gray, Kentucky, represents an exceptional value proposition for rural homebuyers. Offered at $129,900 ($130/sq. ft.) for 3.2 acres, a 1,000 sq. ft. ranch home, a detached garage, and a workshop, its primary strengths include its private setback, on-site pond, low $2.92/month property taxes, and public water connection.
The primary trade-offs involve its single bathroom layout and the need to install the provided flooring in the bedrooms.
For buyers seeking a private 3.2-acre country retreat, homesteading parcel, or workshop-equipped property under $130,000, 2450 S State Highway 233 is a standout offering in the Knox County real estate market.
Listed on Zillow