Real Estate Investing in Lexington, Kentucky (40504)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40504 (Lexington, KY)? 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.
- Elevated vacancy: 8.2% vacancy may signal weakening demand.
- Elevated poverty: 21.6% poverty rate — can affect rent collection.
What’s happening in Lexington, KY (40504)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 40504 Lexington
The 40504 ZIP in Lexington, KY is a local-operator market. Outside capital chasing a $274K entry has to pair deep knowledge with the discount.
For an experienced owner, 40504 can be a a strong candidate for hunting ground — but the discount at $274K reflects genuine risk that outside investors often underestimate.
Within KY, ZIP 40504 trails on several market indicators that neighboring Fayette County submarkets outperform. The gap is real and significant enough to shape underwriting.
In practical terms, 26,164 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 right play in 40504 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Lexington:
Property Strategy for 40504
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $140,803 | $1,030 | 5.3% | +11.3% | $140,803 |
| 2BR | $190,457 | $1,210 | 4.6% | +9.6% | $95,228 |
| 3BR | $264,690 | $1,660 | 4.5% | +8.9% | $88,230 |
| 4BR | $317,715 | $1,850 | 4.2% | +7.4% | $79,429 |
| 5BR | $459,887 | — | — | +6.9% | $91,977 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 40504 Compare?
| Metric | 40504 | Lexington | Lexington-Fayette, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $274,331 | $342,797 | N/A | $225,788 |
| 5-Year CAGR | 7.5% | 6.9% | N/A | 6.9% |
| Avg Rent | $1,439 | $1,627 | N/A | - |
| Cap Rate | 4.1% | 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 40504 (Lexington, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $274,331 |
| Monthly Rent | $1,439 |
| Price-to-Rent | 15.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.3% |
| Cap Rate | 4.1% |
| 5-Year IRR | 11.5% |
📈 Home Appreciation
| 1-Year | +7.3% ▲ |
| 3-Year CAGR | +6.4% ▲ |
| 5-Year CAGR | +7.5% ▲ |
| 10-Year CAGR | +7.7% ▲ |
🏠 Rent Trends
| 1-Year | -7.6% ▼ |
| 3-Year CAGR | +2.5% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.1%). 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 40504
Population: 26,164
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 40504
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Booker T Washington Elementary School
Scapa At Bluegrass
William Wells Brown Elementary
Lexington Trad Magnet School
Clays Mill Elementary School
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
Are there empty rentals in Lexington, KY?
Rental vacancy in Lexington, KY is elevated. Investors should budget normal turnover but not chronic empty units.
Is KY a landlord-friendly state?
Lexington, KY falls under KY landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Does a duplex house hack pencil in Lexington, KY?
Lexington, KY offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,439/mo rent level.
What do landlords charge for rent in Lexington, KY?
Rental rates in Lexington, KY average $1,439/mo. Tenant demand and $274K home values make the yield look reasonable by investor standards.
How qualified is the tenant pool in Lexington, KY?
Tenant quality in Lexington, KY ranks as solid. Landlords generally report measured occupancy at market rents of $1,439/mo.
You know 40504 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 40504 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 40504 ranks in Lexington-Fayette, KY
Every ZIP in this metro, ranked. Free.
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