The story of this market
The typical home in ZIP 40506 sells for about $365,000, or $205 per square foot.
Prices are up +4.2% from a year ago, so sellers still have some momentum. Homes take about 24 days to sell, which is fast. HUD's fair market rent for a two-bedroom is $1,450 a month.
ZIP 40506 — Lexington
The 40506 housing market remains stable, driven by consistent demand from the university-affiliated population. While inventory remains tight, price growth has moderated compared to previous years, reflecting a balanced but competitive environment for buyers and renters alike.
This ZIP is ideal for university students, faculty, and staff who prioritize proximity to campus, as well as investors looking for stable rental demand in a high-density institutional environment.
Median prices moved up 4.2% year over year.
Homes spend a median of 24 days on market with 3.2 months of supply — a fast-moving market.
22% of listings have cut prices · homes sell at 99.1% of asking — demand is running ahead of supply.
no recorded foreclosure-ledger notices (0.0 per 10,000 residents) · unemployment 3.8% · poverty 28.5% — a mixed stability profile.
Researched annual trajectory for this ZIP, from published historical series
Solid: researched ten-year history · dotted: 1 / 3 / 5-year projection extended from the historical 6.1%/yr trend — a deterministic estimate, not a published forecast or guarantee.
Median annual property tax paid on this ZIP's residential parcels
Solid: researched ten-year history · dotted: 1 / 3 / 5-year projection extended from the historical 6.1%/yr trend — a deterministic estimate, not a published forecast or guarantee.
versus the prior ACS vintage
net influx — more people moved in than out
ZCTA 40506, Fayette County KY
Crime rates in the 40506 area are generally lower than the Lexington city-wide average, primarily due to the area being dominated by the University of Kentucky campus and surrounding institutional grounds.
The area is served by Fayette County Public Schools, which generally maintain moderate performance ratings; the ZIP is anchored by the University of Kentucky, providing a strong academic environment.
The area faces standard regional risks for Kentucky, including occasional severe thunderstorms and wind events, with localized flood risks near the South Elkhorn Creek watershed.
Economic momentum is heavily tied to the University of Kentucky and the associated healthcare and research sectors, which drive consistent demand for housing and services.
Property taxes are assessed by the Fayette County Property Valuation Administrator; the rate includes a base county rate plus specific levies for the school district and urban county government services.
The ZIP is centrally located within Lexington, offering short commute times to the downtown employment core and the University of Kentucky campus via major corridors like Nicholasville Road.
Residents have access to the University of Kentucky Arboretum, numerous campus green spaces, and proximity to the shopping and dining districts along the South Limestone and Euclid Avenue corridors.
The rental market is highly competitive due to the significant student population associated with the University of Kentucky, resulting in low vacancy rates and consistent rent growth.
The economy is dominated by the University of Kentucky, which is the largest employer in the region, supported by a robust healthcare sector and associated research industries.
The area is well-served by Lextran bus routes and is positioned near major arterial roads that connect to the broader Lexington-Fayette metropolitan area.
Development is largely focused on institutional growth and infill projects within the university district, with limited new residential subdivisions.
The Fayette County Property Valuation Administrator conducts annual assessments to ensure property values reflect current market conditions.
Parcels are subject to Fayette County Public Schools taxes and various urban service district fees for municipal infrastructure.
Property insurance premiums are stable, though the area is subject to standard regional adjustments based on weather-related risk profiles.
Data retrieved from data.census.gov ZCTA-level tables.
Public schools whose reported address is in this area (NCES). Not attendance boundaries — schools that serve residents may sit outside it. Check the district's address locator for assignment.
- Malibu Jack's Lexington4.72.5 mi
- LexLive40.9 mi
- Sky Zone Trampoline Park4.54.4 mi
- Southland Lanes4.31.6 mi
- Battle Axes, LLC Lexington KY4.52.7 mi
- Kentucky Horse Park4.78 mi
- Rupp Arena4.61.1 mi
- Keeneland Association Inc4.85.6 mi
- Kroger Field4.70.8 mi
- Red Mile Gaming & Racing4.11 mi
- Kentucky Horse Park4.78 mi
- Keeneland Association Inc4.85.6 mi
- Masterson Station Park4.65.3 mi
- Cinemark Fayette Mall and XD4.43.8 mi
- Evans Orchard and Cider Mill4.612.1 mi
- Woodford Reserve Distillery4.817.5 mi
- Shaker Village of Pleasant Hill4.719.7 mi
- Otis A. Singletary Center for the Arts4.70.3 mi
- Fort Boonesborough State Park4.516.1 mi
- Mary Todd Lincoln House4.61.2 mi
- Kentucky Horse Park Campground4.67.5 mi
- Masterson Station Park4.65.3 mi
- The Arboretum, State Botanical Garden of Kentucky4.81.3 mi
- Raven Run Nature Sanctuary4.711.7 mi
- Jacobson Park4.65.5 mi
- Kearney Hill Golf Links4.36.4 mi
- University Club Of Kentucky4.38 mi
- Lakeside Golf Course4.25 mi
- Tates Creek Golf Course4.13.7 mi
- Boone's Trace National Golf Club4.312.7 mi
- Fayette Mall4.33.4 mi
- Publix Super Market at Citation Point4.44.2 mi
- Meijer4.34.6 mi
- Meijer4.33 mi
- T.J. Maxx4.32.2 mi
- Blue Grass Airport4.65.4 mi
Theme parks, venues, golf, airports, museums, water and shopping across the area from Google Maps, ranked by popularity within the radius shown.
A major botanical garden and research facility serving the community.
Home to the University of Kentucky football team and a major regional event venue.
Historic multi-purpose arena used for university sports and events.
Key-figure check: no independent anchor retained yet — first-researched cycles establish the anchor baseline this pass.