Real Estate Investing in Lexington, Tennessee (38351)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 38351 (Lexington, TN)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 13.6% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Lexington, TN (38351)?
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Market Analysis: 38351 Lexington
ZIP 38351 in Lexington, TN carries a healthy set of headwinds. Home values near $224K and rents of $1,008/mo sit inside a market where underwriting has to be tight.
The investment case in 38351 is resilient only for operators who understand what they are buying. A $224K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
The gap between 38351 and stronger Lexington ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
The 38351 ZIP's population of 17,958 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that sits at the need for careful underwriting.
Strategically, 38351 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Lexington:
Market Trends
Home Value History (with trend line)
📊 How Does 38351 Compare?
| Metric | 38351 | Lexington | Tennessee |
|---|---|---|---|
| Home Value | $224,320 | $194,962 | $327,001 |
| 5-Year CAGR | 7.4% | 6.5% | 7.7% |
| Avg Rent | $1,008 | $1,008 | - |
| Cap Rate | 3.5% | 4.1% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 38351 (Lexington, TN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $224,320 |
| Monthly Rent | $1,008 |
| Price-to-Rent | 18.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 10.9% |
📈 Home Appreciation
| 1-Year | +10.9% ▲ |
| 3-Year CAGR | +6.7% ▲ |
| 5-Year CAGR | +7.4% ▲ |
| 10-Year CAGR | +8.1% ▲ |
🏠 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 (3.5%). 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 38351
Population: 17,958
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 38351
Schools in This ZIP Code
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
Frequently Asked Questions
How landlord-friendly is Lexington, TN?
The landlord environment in Lexington, TN is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
What is the renter demographic in Lexington, TN?
Tenant quality in Lexington, TN ranks as solid. Landlords generally report measured occupancy at market rents of $1,008/mo.
Are homes affordable in Lexington, TN?
Lexington, TN median home values land near $224K. That is reasonable territory for investors looking at $1,008/mo-per-month rentals.
How viable is house hacking in Lexington, TN?
The house hack math a challenging in Lexington, TN. Owner-occupant buyers benefit from the $1,008/mo rents and $224K home values.
How should investors approach Lexington, TN?
In Lexington, TN the solid play is typically careful cash-flow rentals with hands-on management. The combination of $224K prices and $1,008/mo rents suits that approach.
You know 38351 now. You don’t know where it ranks.
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