What is the rental yield in University of Kentucky, Lexington?

The gross yield in University of Kentucky, Lexington is 5.6. Prices are about 16% above Lexington and about 26% above Kentucky, and they are up 15.5% over the past year. The Red Flag score is 75.

How has University of Kentucky in Lexington changed over the past year?

Prices in University of Kentucky, Lexington are up 15.5% over the past year. The neighborhood is priced about 16% above Lexington and about 26% above Kentucky, with a gross yield of 5.6 and a Red Flag score of 75.

How does University of Kentucky compare to Lexington and Kentucky?

University of Kentucky in Lexington is priced about 16% above Lexington and about 26% above Kentucky. It has a gross yield of 5.6, walkability of 89, and education in the 72nd percentile. The Red Flag score is 75.

What should buyers know about University of Kentucky in Lexington, Kentucky?

University of Kentucky in Lexington, Kentucky combines a gross yield of 5.6 with prices up 15.5% over the past year. It is priced about 16% above Lexington and about 26% above Kentucky, while the Red Flag score of 75 indicates elevated risk.

Neighborhood

University of Kentucky

Lexington, Kentucky US

University of Kentucky in Lexington, Kentucky has a strong income-and-momentum profile, with pricing about 16% above Lexington and about 26% above Kentucky, a gross yield of 5.6, and prices up 15.5% over the past year. It carries a Red Flag score of 75, walkability of 89, and education in the 72nd percentile. The main strength is the 5.6 gross yield and 15.5% annual price growth; the main risk is the Red Flag score of 75.

AI Summary•Updated May 2026

Area

1.49 mi²

ZIP Code

40508

County

Fayette County

State

Kentucky

Redfin — median sale & volumeZillow ZORI — asking rentFEMA National Risk Index v1.20OpenStreetMap — POIFBI UCR — state crimeEPA — radon zonesWashU ACAG — satellite PM2.5EPA FRS / BTS — hazard screeningUS Census ACS / TIGER 2024

Verified Price · Median Sale

$303,860

YoY+15.5%

Gross Rental Yield

5.6%

Listed rent · ZORI annualized

Red Flag Index

High

75 / 100

Walkability Score

Very Walkable

OpenStreetMap POI density · national percentile

Education Score

72 / 100

Excellent · better than 72% of U.S. districts

Pre-pandemic SEDA (2018/19) · district proxy

AI Score

Fair

DistrictScore attractiveness · national model

University of Kentucky Property Prices & Rental Yield

Verified Redfin sale data and Zillow ZORI asking rent for University of Kentucky, Lexington.

Unlock the University of Kentucky 12-month price trend

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Market Economics Snapshot

May 2026

Metric	Value	YoY
Median Sale Price	$303,860	+15.5%
Price / Sq Ft (Verified)	$234/sqft	-4.0%
Asking Rent (Median)	$1,409/mo	+13.0%
Gross Rental Yield	5.6%	—
Liquidity Score	22 / 100	Low
Homes Sold (Period)	45	-26.2%

Is University of Kentucky Safe? Natural-Hazard Risk

FEMA National Risk Index composite across eight hazards, plus inherited Kentucky crime context.

Red Flag Breakdown

75 / 100

High Risk

Composite is weighted by expected impact — frequent low-damage hazards (hail, wind) weigh less than flood or wildfire.

Earthquake100Very High

Tornado100Very High

Strong Wind100Very High

Hail100Very High

Flood60High

Wildfire60High

Hurricane60High

Heat60High

8/8 hazards scored · FEMA NRI v1.20

Crime (state-level): Kentucky averaged 15.6 crimes and 2.1 violent per 1,000 residents (-11.9% YoY) in 2024(FBI UCR). Compare the state to the country, not states as a ranking — full Safety & Crime data lives on the state page.

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Tract-level hazard heatmap & parcel detail with Pro

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See all eight FEMA hazard scores — free with a DistrictScore account.

What Stands Out AI Insight

Above-average gross rental yield at 5.6%

Appreciating market — +15.5% sale-price YoY

Highly walkable neighborhood — score 89/100

Active transaction volume — 45 homes sold last period

Earthquake risk is Very High (100/100)

Tornado risk is Very High (100/100)

Insights are generated from University of Kentucky's live DistrictScore metrics.

University of Kentucky Environment & Safety

Satellite PM2.5 air-quality history, FBI UCR crime trend (Kentucky-level, the finest official aggregation), EPA radon potential and point-source hazard screening.

Air Quality — PM2.5

2015–2024

6.2 µg/m³ Meets EPA, above WHO guideline-20.0% since 2015

EPA 9WHO 5

20152024

Annual mean fine-particle (PM2.5) concentration at the University of Kentucky centroid, satellite-derived (ACAG). References: WHO guideline 5 µg/m³ · EPA annual standard 9 µg/m³. Latest year ranks worse than 57% of U.S. neighborhoods.

Kentucky Crime Trend

FBI UCR

20132024

All crimes / 1k

Violent / 1k

Year	Crimes / 1k	Violent / 1k	YoY
2024	15.6	2.1	-11.9%
2023	17.9	2.3	+5.8%
2022	17.1	2.2	-9.8%
2021	18.9	2.7	-6.5%
2020	20.4	2.6	-4.2%
2019	21.3	2.2	—

Reported at the state level — the finest official US crime aggregation; University of Kentucky inherits the Kentucky figures.

Radon Potential

EPA

Zone 1

Zone 1 — Highest potential · University of Kentucky

EPA radon zones estimate indoor radon potential county-wide (Zone 1 highest, Zone 3 lowest). Testing is recommended in all zones.

Environmental Hazards

EPA / BTS

Industrial odor3 nearbyVery High

Point-source screening near University of Kentucky: EPA Superfund National Priorities List & Facility Registry (2026), BTS aviation noise (2020, 24-hour average level). Superfund shows distance to the nearest listed site; odor shows detected sources within the screening radius. Only detected sources are listed; the bar shows severity vs. all U.S. neighborhoods.

Walkability & Amenities in University of Kentucky

Amenity density and pedestrian access from OpenStreetMap points of interest.

Walkability & Amenities

OpenStreetMap POI

89

Very Walkable

Walkability Score

9

Grocery

49

Dining

6

Schools

9

Universities

6

Hospitals

1

Pharmacies

16

Parks

0

Rail Transit

0

Coworking

POI counts are amenities within University of Kentucky's boundary plus a 400 m walk buffer. Rail transit excludes bus stops.

University of Kentucky vs Lexington vs Kentucky

How University of Kentucky benchmarks against its city and state medians.

Benchmark vs City & State

In University of Kentucky, the median sale price sits about 16% above the median for Lexington neighborhoods and about 26% above the statewide median. Gross rental yield is 5.6%, against 5.3% for Lexington neighborhoods and 5.5% statewide. Over the past 12 months, prices rose 15.5%. Transaction liquidity sits below the median for Lexington neighborhoods and below the statewide median.

Area	Median / Sq Ft	Gross Yield	Liquidity
University of Kentucky	$234/sqft	5.6%	22
Lexington	$202/sqft	5.3%	33
Kentucky	$186/sqft	5.5%	40

Unlock the University of Kentucky benchmark

Compare University of Kentucky against Lexington and Kentucky medians — free with a DistrictScore account.

Buying Property in the US as a Foreigner

Federal & Kentucky tax facts for non-resident buyers, plus the latest local market news.

Buying as a Foreigner

US Tax & Ownership

Applies to everyone7

Capital Gains (Federal)

Long-term capital gains taxed federally at 0/15/20%, plus a 3.8% Net Investment Income Tax on higher incomes (2026).

Property Tax

Property tax: ~0.72% average effective rate (statewide average; set and collected locally).

State Income Tax

State income tax up to 4.0%; rental income is taxed at these rates.

State Capital Gains

Capital gains are taxed as ordinary income at state rates.

Transfer Tax

Real estate transfer tax: $0.50 per $500.

Assessment Cap

No Proposition 13-style assessment cap; property is reassessed at market value.

Mansion Tax / Rent Control

No statewide mansion tax or statewide rent control.

US citizens & tax residents7

Primary-Home Exclusion

Selling your main home: exclude up to $250k of gain (single) / $500k (married) if you owned and lived there 2 of the last 5 years.

1031 Like-Kind Exchange

A 1031 like-kind exchange defers capital gains tax on investment property; 45 days to identify, 180 to close. Real estate only.

Depreciation Recapture

Residential rentals depreciate over 27.5 years; on sale, recaptured depreciation is taxed up to 25% (Section 1250).

Mortgage Interest Deduction

Mortgage interest is deductible on up to $750k of home debt. The SALT cap rose to $40,000 for 2025-2029 (reverts to $10k in 2030).

Opportunity Zones

Opportunity Zones are now permanent (2025): reinvested capital gains get deferral plus a basis step-up, and are tax-free after 10 years.

Rental Income (Resident)

Rental income is reported on Schedule E; passive-loss rules (Section 469) limit deducting rental losses against other income.

1031 State Conformity

The state conforms to the federal 1031 like-kind exchange rules.

Foreign buyers (non-residents)5

FIRPTA (Foreign Sellers)

FIRPTA: the buyer withholds 15% of the gross sale price when a nonresident sells US property. It is an advance deposit, not the final tax.

Non-Resident Capital Gains

Nonresident sellers pay US capital gains tax (generally 15-20%) on the net gain via Form 1040-NR; FIRPTA withholding is credited.

Non-Resident Rental Tax

Nonresident rental income is taxed at 30% of gross by default, or on net income at graduated rates via a Section 871(d) election (W-8ECI).

Estate Tax (Non-Resident)

Nonresidents get only a $60,000 US estate-tax exemption (vs $13.99M for residents); US property above it is taxed up to 40%. Treaties may help.

ITIN Requirement

Nonresidents without an SSN need an ITIN (Form W-7) to file US tax returns, claim FIRPTA refunds, and report rental income.

Talk to a US real-estate tax advisor

FIRPTA, ITIN & Kentucky property-tax guidance for foreign buyers

Latest Lexington Real-Estate News

New Fed chairman may leave mortgage rates mostly unchanged

Guaranteed Rate • Jun 18, 2026

Household real estate wealth hits record $48.7 trillion

Eye On Housing • Jun 18, 2026

U.S. commercial property prices hit record as deal patterns shift

Altus Group • Jun 18, 2026

University of Kentucky Real Estate FAQ

University of Kentucky in Lexington, Kentucky shows a strong income-and-momentum profile, with a gross yield of 5.6 and prices up 15.5% over the past year. Pricing is about 16% above Lexington and about 26% above Kentucky, while the Red Flag score is 75.

Neighborhoods near University of Kentucky

Compare University of Kentucky with nearby neighborhoods in Lexington.

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