diff --git a/src/dbt_bouncer/checks/manifest/check_models.py b/src/dbt_bouncer/checks/manifest/check_models.py
index d089ec5e..e6c28dec 100644
--- a/src/dbt_bouncer/checks/manifest/check_models.py
+++ b/src/dbt_bouncer/checks/manifest/check_models.py
@@ -203,6 +203,9 @@ class CheckModelDirectories(BaseCheck):
     Receives:
         model (DbtBouncerModelBase): The DbtBouncerModelBase object to check.
 
+    Raises:
+        AssertionError: If the model directory does not contain a permitted sub-directory.
+
     Example(s):
         ```yaml
         manifest_checks:
@@ -237,10 +240,16 @@ def execute(self) -> None:
         path_after_match = clean_path_str(self.model.original_file_path)[
             matched_path.end() + 1 :
         ]
+        directory_to_check = path_after_match.split("/")[0]
 
-        assert (
-            path_after_match.split("/")[0] in self.permitted_sub_directories
-        ), f"`{self.model.name}` is located in `{self.model.original_file_path.split('/')[1]}`, this is not a valid sub-directory."
+        if directory_to_check.replace(".sql", "") == self.model.name:
+            raise AssertionError(  # noqa: DOC501
+                f"`{self.model.name}` is not located in a valid sub-directory ({self.permitted_sub_directories})."
+            )
+        else:
+            assert (
+                directory_to_check in self.permitted_sub_directories
+            ), f"`{self.model.name}` is located in the `{directory_to_check}` sub-directory, this is not a valid sub-directory ({self.permitted_sub_directories})."
 
 
 class CheckModelDocumentedInSameDirectory(BaseCheck):
diff --git a/tests/unit/checks/manifest/test_models.py b/tests/unit/checks/manifest/test_models.py
index 184c88e9..1c34c99b 100644
--- a/tests/unit/checks/manifest/test_models.py
+++ b/tests/unit/checks/manifest/test_models.py
@@ -1341,6 +1341,32 @@ def test_check_model_code_does_not_contain_regexp_pattern(
             ["finance", "marketing"],
             pytest.raises(AssertionError),
         ),
+        (
+            "models",
+            Nodes4(
+                **{
+                    "alias": "model_1",
+                    "checksum": {"name": "sha256", "checksum": ""},
+                    "columns": {
+                        "col_1": {
+                            "index": 1,
+                            "name": "col_1",
+                            "type": "INTEGER",
+                        },
+                    },
+                    "fqn": ["package_name", "model_1"],
+                    "name": "model_1",
+                    "original_file_path": "models/model_1.sql",
+                    "package_name": "package_name",
+                    "path": "marts/sales/model_1.sql",
+                    "resource_type": "model",
+                    "schema": "main",
+                    "unique_id": "model.package_name.model_1",
+                },
+            ),
+            ["finance", "marketing"],
+            pytest.raises(AssertionError),
+        ),
     ],
 )
 def test_check_model_directories(