Home Affordability in Lexington, KY
The median home price in Lexington is $275,000 with a median household income of $57,612. Housing is moderately affordable relative to local incomes.
Median Home Price
$275,000
Median Income
$57,612
Price-to-Income Ratio
4.8x
Est. Affordable Home
$224,000
Property Tax Rate
0.85%
Annual Property Tax
$2,338
Sales Tax Rate
6.00%
Cost of Living Index
93
Buying a Home in Lexington
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $57,612 in Lexington can afford a monthly housing payment of approximately $1,344. This translates to a home price of roughly $224,000, which is below the median home price of $275,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Lexington would be approximately $2,338 per year ($195/month) at the effective rate of 0.85%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $8,250 | $266,750 | Yes |
| 5% | $13,750 | $261,250 | Yes |
| 10% | $27,500 | $247,500 | Yes |
| 20% | $55,000 | $220,000 | No |
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