Markets/Kentucky/Lexington-Fayette

Lexington-Fayette, KY Real Estate Market 2026

Investor-grade market analytics for Lexington-Fayette, Kentucky. Data from Zillow ZHVI, FRED, Census ACS, and FEMA NRI. Data through July 2026.

Median Home Price

$327,773

+3.1% year-over-year

Est. Rental Yield

5.6%

gross annual

12-Month Forecast

+3.1%

base case (Zillow ZHVF)

+3.1% year-over-year

Climate Risk

19/100

Very Low

Market Momentum

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Warm
2mo supply ยท Score +2/7

Net migration: Bottom 5% nationally

Income Migration

โžก๏ธ Neutral0.92x

In-migrants avg $55,261 AGI vs out-migrants $60,221

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Opportunity Zone Market

8 ZIP codes in Lexington-Fayette are designated Qualified Opportunity Zones (IRC 1400Z-2), eligible for capital gains tax deferral on qualifying investments. Learn more โ†’

Lexington-Fayette Market Summary

Lexington-Fayette, KY shows steady growth at 3.1% year-over-year appreciation, reflecting balanced market conditions with moderate demand. Affordability remains favorable with a price-to-income ratio of 4.63x, below the national average of 4.8x. Climate risk remains low (19/100), favorable for long-term investment stability. Rental yield of 5.64% is moderate, offering acceptable cash flow for leveraged investments.

Affordability

Affordability Score77/100
Price-to-Income Ratio4.6x (national avg 4.8x)
Median Household Income$70,717

Price Forecast Scenarios

12-month projection (Zillow ZHVF model)

Bear Case+1.6%
Base Case+3.1%
Bull Case+4.7%

Climate & Natural Hazard Risk

Lexington-Fayette, KY's primary climate exposure is wind storms (60/100). The composite climate risk score of 19/100 (Low) indicates overall risk reflecting favorable conditions for long-term real estate investment. This market benefits from relatively low natural hazard exposure compared to coastal and wildfire-prone regions.

Source: FEMA National Risk Index

Get the full Lexington-Fayette dataset

Migration flows, ZIP-level neighborhood data, full demographics, price history, and the Market Screener.