Real Estate Investing in Lexington, Kentucky (40514)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40514 (Lexington, KY)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Lexington, KY (40514)?
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Market Analysis: 40514 Lexington
The 40514 ZIP in Lexington, KY is a local-operator market. Outside capital chasing a $376K entry has to pair deep knowledge with the discount.
If the plan assumes clean turnover, on-time rent, and low maintenance on a $376K asset, 40514 is the wrong submarket. If the plan prices in friction, the yield can still work.
Statewide comparisons place 40514 among KY's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
A resilient renter share of 28% in 40514 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The 40514 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 40514
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $237,618 | $1,770 | 5.4% | +11.0% | $118,809 |
| 3BR | $334,976 | $2,430 | 5.2% | +8.3% | $111,659 |
| 4BR | $440,049 | $2,700 | 4.4% | +8.2% | $110,012 |
| 5BR | $552,873 | — | — | +8.4% | $110,575 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 40514 Compare?
| Metric | 40514 | Lexington | Lexington-Fayette, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $375,853 | $342,797 | N/A | $225,788 |
| 5-Year CAGR | 6.6% | 6.9% | N/A | 6.9% |
| Avg Rent | $2,055 | $1,627 | N/A | - |
| Cap Rate | 4.3% | 3.5% | - | - |
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 40514 (Lexington, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $375,853 |
| Monthly Rent | $2,055 |
| Price-to-Rent | 15.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.6% |
| Cap Rate | 4.3% |
| 5-Year IRR | 10.8% |
📈 Home Appreciation
| 1-Year | +6.4% ▲ |
| 3-Year CAGR | +4.9% ▲ |
| 5-Year CAGR | +6.6% ▲ |
| 10-Year CAGR | +6.7% ▲ |
🏠 Rent Trends
| 1-Year | +5.8% ▲ |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.3%). 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 40514
Population: 16,919
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 40514
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Scapa At Bluegrass
Clays Mill Elementary School
Stonewall Elementary School
Wellington Elementary
Fayette County Preschool Center
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 8,337 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does Lexington, KY make sense for an investment property?
The 3.0/5 investability rating in Lexington, KY reflects its $376K prices and $2,055/mo rents. Investors generally consider it a solid option within KY.
How do landlord-tenant laws work in Lexington, KY?
KY ranks as a landlord-friendly state for landlord-tenant law. Lexington generally follows the statewide framework, so landlords face reasonable operating rules.
How tight is the rental market in Lexington, KY?
Vacancy risk in Lexington, KY is elevated. That supports consistent cash flow for typical rental holds.
How viable is house hacking in Lexington, KY?
The house hack math a challenging in Lexington, KY. Owner-occupant buyers benefit from the $2,055/mo rents and $376K home values.
How should investors approach Lexington, KY?
In Lexington, KY the solid play is typically careful cash-flow rentals with hands-on management. The combination of $376K prices and $2,055/mo rents suits that approach.
You know 40514 now. You don’t know where it ranks.
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How 40514 ranks in Lexington-Fayette, KY
Every ZIP in this metro, ranked. Free.
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