Updated 2026 · Based on median market data for Lexington, NE
The median monthly rent in Lexington, NE is $1,270, translating to $15,240 in annual gross rental income per unit. The rent-to-price ratio is 0.62% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Lexington spend approximately 28% of the local median household income ($55,067) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units.
The vacancy rate in Lexington is 5.2%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.7% annually provides stable demand.
Lexington's GRM (price divided by annual rent) is 13.5x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,270/mo, a single-family rental in Lexington generates approximately $15,240 in gross annual income. After accounting for 5.2% vacancy ($792 lost), property taxes of $3,321, insurance (~$820), and maintenance (~$820), the estimated NOI is $9,487 per year, or $791/mo.
Lexington vs Nebraska state average and national average across key investment metrics. Lexington outperforms both benchmarks on cap rate.