Real Estate Investing in Lexington, Kentucky (40502)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40502 (Lexington, KY)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 8.4% vacancy may signal weakening demand.
- High price-to-rent: Price-to-rent ratio 33.1 — hard to cash-flow at these prices.
What’s happening in Lexington, KY (40502)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 40502 Lexington
The 40502 ZIP in Lexington, KY is a local-operator market. Outside capital chasing a $572K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 40502 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Nearby ZIPs in Lexington have seen price recovery that 40502 has not matched. Fayette County data supports the view that the spread is structural rather than temporary.
The 40502 ZIP's population of 26,593 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that records the need for careful underwriting.
New investors are better served looking at Lexington's stable or hybrid ZIPs before stepping into 40502. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Lexington:
Property Strategy for 40502
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $175,880 | $1,070 | 4.4% | +9.1% | $175,880 |
| 2BR | $289,786 | $1,260 | 3.1% | +8.1% | $144,893 |
| 3BR | $487,130 | $1,730 | 2.6% | +8.0% | $162,377 |
| 4BR | $747,641 | $1,920 | 1.8% | +8.5% | $186,910 |
| 5BR | $999,300 | — | — | +8.9% | $199,860 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 40502 Compare?
| Metric | 40502 | Lexington | Lexington-Fayette, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $572,335 | $342,797 | N/A | $225,788 |
| 5-Year CAGR | 7.7% | 6.9% | N/A | 6.9% |
| Avg Rent | $1,442 | $1,627 | N/A | - |
| Cap Rate | 2.0% | 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 40502 (Lexington, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $572,335 |
| Monthly Rent | $1,442 |
| Price-to-Rent | 33.1:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.0% |
| Cap Rate | 2.0% |
| 5-Year IRR | 9.7% |
📈 Home Appreciation
| 1-Year | +9.9% ▲ |
| 3-Year CAGR | +7.3% ▲ |
| 5-Year CAGR | +7.7% ▲ |
| 10-Year CAGR | +6.3% ▲ |
🏠 Rent Trends
| 1-Year | +0.3% ▲ |
| 3-Year CAGR | +2.9% ▲ |
| 5-Year CAGR | +5.8% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.0%). 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 40502
Population: 26,593
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 40502
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Booker T Washington Elementary School
Millcreek Elementary School
Scapa At Bluegrass
Southern Elementary School
William Wells Brown Elementary
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
How do home values compare in Lexington, KY?
In Lexington, KY the median home value sits at $572K. Against the broader KY market, that reads as reasonable for most investors.
Can I house hack in Lexington, KY?
Lexington, KY is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $572K price point reasonable to enter.
Do rentals sit vacant long in Lexington, KY?
Rental vacancy in Lexington, KY is elevated. Investors should budget normal turnover but not chronic empty units.
How much do tenants pay in Lexington, KY?
Rent in Lexington, KY is around $1,442/mo. The resulting rent-to-value relationship with $572K pricing is reasonable for most investor models.
Is KY a landlord-friendly state?
Landlord-friendliness in Lexington, KY is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
You know 40502 now. You don’t know where it ranks.
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How 40502 ranks in Lexington-Fayette, KY
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