Real Estate Investing in Lexington, Kentucky (40513)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 40513 (Lexington, KY)? 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.
No major risk flags on the data we track.
What’s happening in Lexington, KY (40513)?
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Market Analysis: 40513 Lexington
Investors eyeing 40513 need to respect the fundamentals at play. Home values of $577K come alongside slower price movement and elevated management overhead.
The investment case in 40513 is impressive only for operators who understand what they are buying. A $577K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Regionally, 40513 sits on the difficult end of the KY spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
Employment concentration in 40513 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
New investors are better served looking at Lexington's stable or hybrid ZIPs before stepping into 40513. 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 40513
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $301,189 | $1,650 | 3.9% | +7.5% | $150,594 |
| 3BR | $420,054 | $2,260 | 3.9% | +7.3% | $140,018 |
| 4BR | $612,771 | $2,520 | 3.0% | +7.6% | $153,193 |
| 5BR | $792,825 | — | — | +7.6% | $158,565 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 40513 Compare?
| Metric | 40513 | Lexington | Lexington-Fayette, KY | Kentucky |
|---|---|---|---|---|
| Home Value | $576,970 | $342,797 | N/A | $225,788 |
| 5-Year CAGR | 6.3% | 6.9% | N/A | 6.9% |
| Avg Rent | $2,577 | $1,627 | N/A | - |
| Cap Rate | 3.5% | 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 40513 (Lexington, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $576,970 |
| Monthly Rent | $2,577 |
| Price-to-Rent | 18.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.4% |
| Cap Rate | 3.5% |
| 5-Year IRR | 9.8% |
📈 Home Appreciation
| 1-Year | +7.1% ▲ |
| 3-Year CAGR | +4.5% ▲ |
| 5-Year CAGR | +6.3% ▲ |
| 10-Year CAGR | +5.5% ▲ |
🏠 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 40513
Population: 10,710
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 40513
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
Investor Insight: With 8,337 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How strong are rents in Lexington, KY?
Lexington, KY rentals go for roughly $2,577/mo a month. That puts gross yield in solid territory relative to $577K acquisition costs.
What is the tenant pool like in Lexington, KY?
Tenant quality in Lexington, KY ranks as solid. Landlords generally report predictable occupancy at market rents of $2,577/mo.
How expensive is real estate in Lexington, KY?
Expect median prices around $577K in Lexington, KY. The market has run at a 0.0% 5-year CAGR, so entry costs have been even-keeled.
Is Lexington, KY good for house hacking?
House hacking in Lexington, KY is reasonable to execute. Prices around $577K and rents of $2,577/mo solid owner-occupant economics.
Is Lexington, KY good for landlords?
The landlord environment in Lexington, KY is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
You know 40513 now. You don’t know where it ranks.
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How 40513 ranks in Lexington-Fayette, KY
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