Introduction

Investing in rental properties can be a lucrative venture if approached with the right strategy. A good rental property offers a blend of affordability, desirability, and strong potential for returns. Location plays a pivotal role in determining the success of a rental property investment. A well-chosen location not only attracts tenants but also ensures a steady appreciation of property value. In this guide, we will explore the rental property market in Fayette County, KY, focusing on the best neighborhoods and areas. We will grade each area on convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel, and the unique "x-factor" that makes each area desirable.

Best Neighborhoods and Areas in Fayette County, KY

1. Downtown Lexington

Grades:

• Convenience: A
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: C
• Return on Investment: B+
• Proximity to Work-Related Travel: A
• X-Factor: A+

Convenience: Downtown Lexington offers unparalleled convenience with a wide range of amenities within walking distance. Residents have easy access to grocery stores, restaurants, entertainment venues, and public transportation.

Tourist Attractions: This area is a hub for tourists, with attractions like the Lexington Opera House, Rupp Arena, and the Mary Todd Lincoln House. The presence of these landmarks ensures a steady influx of visitors, making it an attractive option for short-term rentals.

Things to Do: Downtown is vibrant with activities. From dining at top-tier restaurants to enjoying nightlife at local bars and clubs, there's always something happening. Additionally, the Lexington Farmers Market is a popular spot for fresh produce and local crafts.

Average Home Prices: The average home prices in Downtown Lexington are relatively high compared to other areas in Fayette County. This can be a barrier to entry for some investors, but the potential for rental income can justify the higher initial investment.

Return on Investment: Despite the higher home prices, the return on investment in Downtown Lexington is strong due to high demand for rental properties, both short-term and long-term.

Proximity to Work-Related Travel: Downtown Lexington is close to key employment hubs, including hospitals like the University of Kentucky Albert B. Chandler Hospital, convention centers, and sports venues such as Rupp Arena.

X-Factor: The unique blend of historical charm, cultural richness, and modern amenities makes Downtown Lexington a highly desirable area. Its dynamic environment and vibrant lifestyle attract a diverse range of tenants.

2. Chevy Chase/Ashland Park

Grades:

• Convenience: A
• Tourist Attractions: B+
• Things to Do: A-
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: B+
• X-Factor: A

Convenience: Chevy Chase and Ashland Park are well-known for their convenience, with a variety of shops, restaurants, and schools within easy reach. The area is family-friendly, offering a suburban feel within close proximity to downtown.

Tourist Attractions: While not as tourist-heavy as Downtown, the area boasts attractions like the Henry Clay Estate and several parks that appeal to visitors and residents alike.

Things to Do: Residents can enjoy a mix of outdoor activities and cultural experiences. The neighborhood has a variety of parks, boutique shops, and local eateries that create a vibrant community atmosphere.

Average Home Prices: Home prices in Chevy Chase/Ashland Park are moderate to high, reflecting the area's desirability and quality of life. However, the investment can yield substantial returns due to the area's strong rental demand.

Return on Investment: With its mix of high-quality amenities and a strong community feel, the area offers excellent ROI potential for rental properties.

Proximity to Work-Related Travel: The neighborhood is relatively close to key employment centers and hospitals, making it a convenient location for professionals.

X-Factor: The blend of historical significance, lush green spaces, and a close-knit community gives Chevy Chase/Ashland Park its unique appeal. The neighborhood's charm and character make it a standout choice for renters seeking a balance of urban and suburban living.

3. Beaumont

Grades:

• Convenience: A-
• Tourist Attractions: B
• Things to Do: B+
• Average Home Prices: B
• Return on Investment: B+
• Proximity to Work-Related Travel: A
• X-Factor: B+

Convenience: Beaumont is known for its convenient location, with excellent access to shopping centers, restaurants, and schools. The neighborhood is designed with a mix of residential and commercial areas, making it easy for residents to meet their daily needs without traveling far.

Tourist Attractions: Beaumont is not primarily a tourist destination, but it is home to several parks and recreational facilities that attract visitors. Nearby attractions include the Beaumont Centre Family YMCA and the Bluegrass Youth Ballet.

Things to Do: Residents of Beaumont enjoy a variety of activities, including outdoor recreation at local parks, fitness classes at the YMCA, and dining at a range of restaurants. The area has a suburban feel with plenty of green spaces for relaxation and leisure.

Average Home Prices: Home prices in Beaumont are moderate, offering good value for the quality of life in the area. This makes it an attractive option for investors looking for a balance between affordability and desirability.

Return on Investment: The return on investment in Beaumont is strong due to the high demand for rental properties in a well-planned community. The area's appeal to families and professionals ensures a steady stream of potential tenants.

Proximity to Work-Related Travel: Beaumont's location provides easy access to major employment centers, including hospitals and business districts. This makes it a convenient place for professionals to live and commute.

X-Factor: Beaumont's planned community design, with a focus on accessibility and quality of life, sets it apart. The neighborhood's mix of residential comfort and commercial convenience makes it a desirable place to live.

4. Masterson Station

Grades:

• Convenience: B+
• Tourist Attractions: B-
• Things to Do: B
• Average Home Prices: A
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: B+

Convenience: Masterson Station offers a range of conveniences with local schools, parks, and shopping centers within close reach. The neighborhood is designed to cater to families, providing a safe and welcoming environment.

Tourist Attractions: While not a major tourist area, Masterson Station has its own attractions, including the Masterson Station Park, which hosts various events and activities throughout the year.

Things to Do: Residents can enjoy outdoor activities at Masterson Station Park, including horseback riding, sports, and picnicking. The area also offers community events and local gatherings that foster a strong sense of community.

Average Home Prices: Home prices in Masterson Station are relatively low compared to other areas in Fayette County, making it an excellent entry point for investors looking for affordable properties with good potential returns.

Return on Investment: With affordable home prices and a high demand for rental properties, Masterson Station offers a strong return on investment. The area's family-friendly atmosphere attracts long-term tenants.

Proximity to Work-Related Travel: The neighborhood is a short drive from downtown Lexington and other employment centers, making it a convenient location for commuting professionals.

X-Factor: The family-oriented design of Masterson Station, with ample recreational opportunities and a strong community spirit, makes it a unique and attractive option for renters.

5. Kenwick

Grades:

• Convenience: B+
• Tourist Attractions: B+
• Things to Do: B+
• Average Home Prices: B
• Return on Investment: A-
• Proximity to Work-Related Travel: B
• X-Factor: A

Convenience: Kenwick is a historic neighborhood with a range of amenities nearby. Residents have easy access to shops, cafes, and parks, all within a short distance.

Tourist Attractions: Kenwick is close to several tourist attractions, including the University of Kentucky campus and the Lexington Farmers Market. The neighborhood's historic charm also attracts visitors.

Things to Do: The area offers a mix of cultural and recreational activities. Residents can enjoy local restaurants, community events, and outdoor activities at nearby parks.

Average Home Prices: Home prices in Kenwick are moderate, reflecting the neighborhood's desirability and historic appeal. This makes it a good option for investors looking for properties with character.

Return on Investment: Kenwick offers a solid return on investment due to its strong rental demand and historical significance. The area's unique charm attracts a diverse range of tenants.

Proximity to Work-Related Travel: The neighborhood is conveniently located near major employment centers, making it an ideal location for professionals and students.

X-Factor: Kenwick's historic charm and community-focused atmosphere set it apart. The neighborhood's unique blend of old-world appeal and modern conveniences make it a standout choice for renters.

Conclusion

Fayette County, KY, offers a diverse range of neighborhoods, each with its own unique appeal and investment potential. From the vibrant, urban atmosphere of Downtown Lexington to the family-friendly environment of Masterson Station, there is something for every investor. By carefully considering the grades and detailed insights for each area, investors can make informed decisions and unlock the full potential of rental properties in Fayette County, KY.