Lexington, KY — Rental Investment Analysis

🔴WEAK— appreciation play only

Cap Rate

3.5%

Below average

Monthly Cash Flow

-$814

After all expenses

Price-to-Rent

15.8

Overpriced for rent

DSCR

0.55

Fails

📊 Key Metrics

Median Home Price: $360,374
Average Rent (3BR): $1,780/mo
Price-to-Rent Ratio: 15.8(high)
1% Rule: 0.52%(fails — need 1%+)
Cash-on-Cash Return: -12.6%
Vacancy Rate: 8.0%

📈 Market Strength

Unemployment Rate: 4.3%(0% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: +0.55% YoY

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

0.8%

of assessed value (KY avg)

Median Income

$55,573

household (KY avg)

Rent-to-Income

38.4%

Stretched

Section 8 Max Rent

$1,780/mo

3BR voucher payment

🏛️ KY Investor Climate

Landlord Friendly

7/10

State Income Tax

Has state tax

Property Tax

0.8% effective

Population Trend

+0.55% (3yr)

🏘️ Best Zip Codes in Lexington for Investors

40517

Cap Rate: 4.8%Cash Flow: -$349/mo$254,959

40508

Cap Rate: 4.6%Cash Flow: -$339/mo$229,228

40505

Cap Rate: 4.4%Cash Flow: -$385/mo$231,123

All Zip Codes in Lexington

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
40517	4.8%	-$349	$254,959	$1,670/mo	0.74
40508	4.6%	-$339	$229,228	$1,470/mo	0.72
40505	4.4%	-$385	$231,123	$1,430/mo	0.69
40514	4.1%	-$719	$373,172	$2,190/mo	0.64
40511	3.8%	-$667	$314,302	$1,770/mo	0.60
40516	3.7%	-$770	$341,760	$1,870/mo	0.58
40504	3.5%	-$648	$272,582	$1,450/mo	0.55
40503	3.4%	-$858	$347,576	$1,810/mo	0.54
40515	3.1%	-$1,053	$383,860	$1,870/mo	0.48
40509	3.0%	-$1,142	$403,064	$1,920/mo	0.47
40507	2.1%	-$1,396	$388,411	$1,490/mo	0.32
40513	1.9%	-$2,168	$573,516	$2,070/mo	0.29
40502	1.4%	-$2,337	$564,651	$1,790/mo	0.22
40510	0.6%	-$3,652	$756,111	$1,760/mo	0.09