Real Estate Investing in Lexington, Massachusetts (02420)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 02420 (Lexington, MA)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 30.2 — hard to cash-flow at these prices.
What’s happening in Lexington, MA (02420)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 02420 Lexington
The 02420 ZIP in Lexington, MA is a local-operator market. Outside capital chasing a $1.5M entry has to pair deep knowledge with the discount.
The investment case in 02420 is robust only for operators who understand what they are buying. A $1.5M median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Nearby ZIPs in Lexington have seen price recovery that 02420 has not matched. Middlesex County data supports the view that the spread is structural rather than temporary.
Put differently, 16,287 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The 02420 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Lexington:
Property Strategy for 02420
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $465,395 | $3,070 | 4.7% | +3.7% | $465,395 |
| 2BR | $769,804 | $3,650 | 3.4% | +5.4% | $384,902 |
| 3BR | $1,208,321 | $4,380 | 2.6% | +7.4% | $402,774 |
| 4BR | $1,693,114 | $4,830 | 2.1% | +8.0% | $423,278 |
| 5BR | $2,445,887 | — | — | +7.7% | $489,177 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 02420 Compare?
| Metric | 02420 | Lexington | Massachusetts |
|---|---|---|---|
| Home Value | $1,547,844 | $1,596,655 | $645,115 |
| 5-Year CAGR | 6.1% | 6.3% | 7.0% |
| Avg Rent | $4,275 | $4,119 | - |
| Cap Rate | 2.2% | 2.0% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 02420 (Lexington, MA). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 02420 (Lexington, MA)?
~25 seconds · no account needed · your report is anonymous
Property managers serving Middlesex County
Manage rentals here? List your business →Green Ocean Property Management offers investment property management and condo association management services in Boston and surrounding areas like Allston, Brighton, Cambridge, and Quincy. summary from their website
McDonough Property Management offers full-service property management and HOA management in the Greater Boston Area, covering maintenance, inspections, legal compliance, and communication. summary from their website
New England Property Management & Maintenance offers property management for multi/single-family homes, apartments, rental properties, and condo associations in Brookline, MA and Cambridge, MA. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $1,547,844 |
| Monthly Rent | $4,275 |
| Price-to-Rent | 30.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.3% |
| Cap Rate | 2.2% |
| 5-Year IRR | 8.3% |
📈 Home Appreciation
| 1-Year | +4.1% ▲ |
| 3-Year CAGR | +4.5% ▲ |
| 5-Year CAGR | +6.1% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.2%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 02420
Population: 16,287
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 02420
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Bowman
Bridge
Maria Hastings
Minuteman Regional High
Jonas Clarke Middle
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 1,139 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the average home sale price in Lexington, MA?
Expect median prices around $1.5M in Lexington, MA. The market has run at a 0.0% 5-year CAGR, so entry costs have been predictable.
How much rent can I charge in Lexington, MA?
Lexington, MA rentals go for roughly $4,275/mo a month. That puts gross yield in solid territory relative to $1.5M acquisition costs.
Is the tenant base reliable in Lexington, MA?
Tenant demand in Lexington, MA is solid. The local workforce $4,275/mo rents across most rental classes.
Is real estate in Lexington, MA a good investment right now?
Lexington, MA rates 3.0/5 for investability. With median values at $1.5M and rents near $4,275/mo, the market offers reasonable fundamentals for rental investors.
What is the best play in Lexington, MA?
Lexington, MA investors pursuing careful cash-flow rentals with hands-on management. The underlying economics ($1.5M prices, $4,275/mo rents) make it a reasonable choice.
You know 02420 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 02420 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 02420 ranks in Boston-Cambridge-Newton, MA-NH
Every ZIP in this metro, ranked. Free.
AI Market Advisor
Ask questions about investing in 02420 (Lexington)
Community Ratings
What people who’ve spent time here actually say. Not paid reviews.
Be the first to rate 02420 (Lexington, MA).
It takes 30 seconds. No signup. Your rating helps everyone who comes here after you.