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MarketsNebraskaLexington

Cap Rate Analysis: Lexington, NE

Investment metrics, interactive calculators, and data-driven analysis for Lexington rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Moderate — source deals carefully
Based on $205,000 median price and $1,270/mo median rent
Est. Cap Rate
4.63%
1% Rule
0.62%
Fails
GRM
13.5x
Price / Income
3.7x

Market Data

Median Home Price$205,000
Median Monthly Rent$1,270
Property Tax Rate1.62%
Population50,000
Population Growth0.7% / yr
Median Household Income$55,067
Vacancy Rate5.2%
Annual Appreciation2.5%

Cap Rate Calculator — Lexington

Pre-filled with Lexington medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.62% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.69%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,560
net operating income
Gross Rent Multiplier
13.5x
Good (<15)
1% Rule
0.62%
✗ Fails
Monthly Cash Flow
$630
before debt service
Annual Breakdown
Gross Rental Income$15,240
Less Vacancy−$792
Effective Income$14,448
Less Operating Expenses−$6,888
Net Operating Income$7,560
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Cash-on-Cash Return — Lexington

Factor in financing to see your actual return on invested capital in Lexington.

$
$51,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.55%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$57,400
$51,250 down + $6,150 closing
Monthly Mortgage
$1,002
on $154K loan
Monthly Cash Flow
$-265
after all expenses
Annual Cash Flow
$-3,184
before taxes
Cash Flow Breakdown
Monthly Rent$1,270
Less Expenses−$533
Less Mortgage−$1,002
Monthly Cash Flow$-265

Is Lexington a Good Place to Invest in Rental Property?

Lexington, NE has a population of 50,000 and has been growing at 0.7% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $205,000 paired with median rents of $1,270/mo produces an estimated cap rate of 4.63%.

Property taxes at 1.62% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 3.7x, homes cost about 3.7 times the local median income of $55,067. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Lexington presents moderate opportunities. Cap rates near 4.63% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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