Real Estate Investing in Lexington, Indiana (47138)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 47138 (Lexington, IN)? 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.
- High vacancy: 14.1% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Lexington, IN (47138)?
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Market Analysis: 47138 Lexington
This part of Jefferson County is not an easy win. The 47138 ZIP reports softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Distressed markets are won on execution, not on spreadsheets. ZIP 47138 sits at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
In the broader IN picture, 47138 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
A resilient renter share of 11% in 47138 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
New investors are better served looking at Lexington's stable or hybrid ZIPs before stepping into 47138. 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 47138
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $167,357 | $1,430 | 6.2% | +9.6% | $83,679 |
| 3BR | $242,340 | $1,840 | 5.5% | +9.4% | $80,780 |
| 4BR | $332,731 | $2,060 | 4.5% | +8.8% | $83,183 |
Market Trends
Home Value History (with trend line)
📊 How Does 47138 Compare?
| Metric | 47138 | Lexington | Madison, IN | Indiana |
|---|---|---|---|---|
| Home Value | $257,141 | $257,141 | N/A | $248,442 |
| 5-Year CAGR | 7.5% | 7.5% | N/A | 7.7% |
| Avg Rent | $1,287 | $1,287 | N/A | - |
| Cap Rate | 3.9% | 3.9% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 47138 (Lexington, IN). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $257,141 |
| Monthly Rent | $1,287 |
| Price-to-Rent | 16.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.0% |
| Cap Rate | 3.9% |
| 5-Year IRR | 11.4% |
📈 Home Appreciation
| 1-Year | +9.7% ▲ |
| 3-Year CAGR | +6.7% ▲ |
| 5-Year CAGR | +7.5% ▲ |
| 10-Year CAGR | +8.9% ▲ |
🏠 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 (3.9%). 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 47138
Population: 4,646
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 47138
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
Frequently Asked Questions
Is housing expensive in Lexington, IN?
Lexington, IN median home values land near $257K. That is reasonable territory for investors looking at $1,287/mo-per-month rentals.
Is IN a landlord-friendly state?
The landlord environment in Lexington, IN is landlord-friendly. Statewide rules shape most day-to-day operations for rental owners.
How qualified is the tenant pool in Lexington, IN?
Expect a solid tenant pool in Lexington, IN. The rental market absorbs $1,287/mo rents without meaningful friction.
How should investors approach Lexington, IN?
In Lexington, IN the notable play is typically careful cash-flow rentals with hands-on management. The combination of $257K prices and $1,287/mo rents suits that approach.
What do landlords charge for rent in Lexington, IN?
Expect rents around $1,287/mo per month in Lexington, IN. With home values at $257K, the yield math works out to reasonable levels for rental investors.
You know 47138 now. You don’t know where it ranks.
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How 47138 ranks in Madison, IN
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