Real Estate Investing in Lexington, Kentucky (40507)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40507 (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: 8.5% vacancy may signal weakening demand.
What’s happening in Lexington, KY (40507)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 40507 Lexington
The 40507 ZIP in Lexington, KY is a local-operator market. Outside capital chasing a $402K entry has to pair deep knowledge with the discount.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 40507 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Within KY, ZIP 40507 trails on several market indicators that neighboring Fayette County submarkets outperform. The gap is real and substantial enough to shape underwriting.
Resident income in 40507 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
The 40507 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 40507
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $254,408 | $980 | 2.8% | +8.0% | $254,408 |
| 2BR | $408,367 | $1,150 | 2.0% | +6.0% | $204,184 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 40507 Compare?
| Metric | 40507 | Lexington | Lexington-Fayette, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $402,477 | $342,797 | N/A | $225,788 |
| 5-Year CAGR | 6.5% | 6.9% | N/A | 6.9% |
| Avg Rent | $1,543 | $1,627 | N/A | - |
| Cap Rate | 3.0% | 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 40507 (Lexington, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $402,477 |
| Monthly Rent | $1,543 |
| Price-to-Rent | 21.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.6% |
| Cap Rate | 3.0% |
| 5-Year IRR | 9.5% |
📈 Home Appreciation
| 1-Year | +8.9% ▲ |
| 3-Year CAGR | +6.8% ▲ |
| 5-Year CAGR | +6.5% ▲ |
| 10-Year CAGR | +4.9% ▲ |
🏠 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 (3.0%). 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 40507
Population: 2,225
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 40507
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Arlington Elementary School
Booker T Washington Elementary School
Cardinal Valley Elementary School
Crawford Middle School
Deep Springs 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
How quickly do rentals get leased in Lexington, KY?
Vacancy risk in Lexington, KY is elevated. That supports steady cash flow for typical rental holds.
How much rent can I charge in Lexington, KY?
Rents in Lexington, KY run near $1,543/mo. Compared with median home prices of $402K that produces solid gross yields for typical rentals.
How viable is house hacking in Lexington, KY?
The house hack math a challenging in Lexington, KY. Owner-occupant buyers benefit from the $1,543/mo rents and $402K home values.
Which investment style suits Lexington, KY?
A careful cash-flow rentals with hands-on management strategy Lexington, KY best. The market produces stable results for that approach at the $402K price point.
What is the investability score for Lexington, KY?
Lexington, KY stands at an investability rating of 3.0/5, with median home values near $402K and average rents around $1,543/mo. That combination puts it in the durable tier for investor interest.
You know 40507 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 40507 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 40507 ranks in Lexington-Fayette, KY
Every ZIP in this metro, ranked. Free.
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