What's a good cap rate in Lexington?

In Lexington, cap rates typically run around 8.5% (Kentucky state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Lexington deal lands versus this benchmark.

What's the average rent for a rental in Lexington?

A typical rental in Lexington runs about $1,272–$1,743/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Kentucky?

Kentucky's effective property tax rate is about 0.83% of value per year — the figure TrueCap applies by default for Lexington deals. You can override it with the exact local rate.

Lexington, KY

Lexington rental property analysis

Lexington is a stable, affordable market anchored by the University of Kentucky and healthcare — low vacancy and dependable demand.

Lexington market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

8.5%

Kentucky state median

Typical rent

$1,272–$1,743/mo

HUD FMR · 2–3BR · 2026

Typical price

$220,000–$310,000

est., all-in

Property tax

0.83%

Kentucky effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Lexington a good place to buy rentals?

Balanced cash flow with modest, reliable appreciation. A clean buy-and-hold market with low volatility and quick lease-ups.

See the full Kentuckyinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Lexington

Southland

Stable, family renters, steady demand.

North Lexington

Value-add, improving area.

Hamburg area

Newer stock, low vacancy.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Lexington deal in 60 seconds

Paste a Lexington address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Kentucky tax and HUD rent so you start from the right assumptions.

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