Investment metrics, interactive calculators, and data-driven analysis for Lexington rental properties.
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Factor in financing to see your actual return on invested capital in Lexington.
Lexington, KY has a population of 325,000 and has been growing at 0.9% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $260,000 paired with median rents of $1,300/mo produces an estimated cap rate of 4.08%.
Property taxes at 0.81% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 4.5x, homes cost about 4.5 times the local median income of $58,400. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 3.1% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Lexington presents moderate opportunities. Cap rates near 4.08% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.