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South Carolina market guide
DSCR loans in Lexington, SC
Rental financing for Lexington investors, qualified on the property's rent.
In Lexington, SC, rental investors qualify on the property's rent instead of personal income. The market data behind that: $1,545 median rent, $297,700 median home value and 31% of households renting.
Lexington by the Census numbers
Citywide, Lexington renters pay a median $1,545 in gross rent (rent plus utilities), well above the South Carolina median of $1,180, and owner-occupied homes have a median value of $297,700, about 15% above the South Carolina median of $259,000. By the simple measure of annual rent over home value, Lexington sits at 6.2%, neither especially thin nor especially rich. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | South Carolina | Lexington | Difference |
|---|---|---|---|
| Persons per household | 2.44 | 2.42 | |
| Share in 2-4 unit buildings | 4.5% | 2.6% | -41% |
| Share of homes detached | 64.5% | 64.4% | -0% |
| Long commuters, 45 min plus | 14.7% | 10.5% | -29% |
| Degree holders, age 25+ | 32.1% | 50.7% | +58% |
| Renters paying 30%+ of income | 52.1% | 46.9% | -10% |
| Units sitting vacant | 13.3% | 5.5% | -59% |
| Typical construction year | 1992 | 2002 | |
| Households that rent | 28.1% | 31.3% | +11% |
| Tax as a share of home value | 0.48% | 0.52% | +7% |
| Annual property tax bill, median | $1,251 | $1,541 | +23% |
| Household income, median | $69,324 | $87,126 | +26% |
| Typical owner-occupied value | $259,000 | $297,700 | +15% |
| Typical monthly rent | $1,180 | $1,545 | +31% |
| Residents (Census estimate) | 5,296,225 | 24,585 |
Renters are a minority in Lexington at 31.3% of households (about 11% above the South Carolina median of 28%). Expect rentals to cluster near employers, campuses or older housing. Median household income of $87,126 (well above the South Carolina median of $69,324) sets the ceiling for rent growth, and 47% of renters already spend 30 percent or more of income on rent.
Property types and condition in Lexington
Detached houses are 64% of all units in Lexington. That mix favors single-family rentals and makes small multifamily scarcer and, sometimes, more valuable. Median year built is 2002, which means newer stock, lower near-term repair risk and many properties inside associations.
The Census counts 6% of Lexington housing units as vacant, with a rental vacancy figure of 6.7%.
What the data means for Lexington buyers
A 6.2% gross yield makes Lexington a market where the ratio is achievable but not automatic. A few hundred dollars of extra insurance or dues can decide a borderline file. Newer construction (median built 2002) lowers near-term repair risk, but association rules and builder-grade finishes can limit rent growth. An owner-heavy market (69% owner-occupied) means many tenants are renting by choice rather than necessity, so condition and schools matter to them.
Taxes and risk in Lexington
The Census reports median real estate taxes paid of $1,541 in Lexington, about 23% above the South Carolina median of $1,251. Against the median value that is an effective rate of roughly 0.52%, compared with 0.48% for South Carolina as a whole. Set beside the median rent, the tax alone consumes about 8% of annual rent.
County-level hazard data from FEMA (National Risk Index 1.20) shows Lexington County with relatively moderate overall risk and ice storms (very high), tornadoes (relatively high) and strong wind (relatively high) at the top of the list.
| Hazard in Lexington County, FEMA index | Level |
|---|---|
| Lightning exposure | Relatively High |
| Strong wind exposure | Relatively High |
| Tornadoes exposure | Relatively High |
| Ice storms exposure | Very High |
| Social vulnerability score | Relatively Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Many investors meet insurance too late, so get a quote tied to the Lexington property's roof age and flood zone before you waive your inspection period.
Working the Lexington rent math
At the city medians a DSCR file in Lexington has $1,417 a month after taxes to cover principal, interest, insurance and dues if the ratio is 1.00, or $1,108 if the ratio is 1.25. Those two numbers show why insurance quotes and tax estimates come first.
Rental rules for Lexington, SC
Before you underwrite a Lexington rental, confirm with city hall and Lexington County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. For Lexington short-term hosts, one state-level point stands out. South Carolina taxes sleeping accommodations rented for less than 90 continuous days with a state sales tax and an accommodations tax under S.C. Code 12-36-920, and counties and cities may add a local accommodations tax that they collect themselves.
South Carolina limits what a Lexington owner may hold as a deposit: No cap on the amount in the Residential Landlord and Tenant Act. The statute is S.C. Code Ann. § 27-40-410. A Lexington landlord must handle the deposit within 30 days after move-out under South Carolina law. Expect to give 30 days' written notice before the termination date (7 days for week-to-week) of notice to end a month-to-month arrangement at a Lexington rental.
Comparing Lexington with surrounding markets
Sumter's median home value of $199,100 is the group's floor and Aiken's $286,800 its ceiling, while Lexington is $297,700.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Sumter | 43% | $1,123 | $199,100 | 43,053 | $1,076 |
| Aiken | 32% | $1,273 | $286,800 | 32,521 | $1,180 |
| Columbia | 54% | $1,700 | $264,300 | 139,643 | $1,204 |
| Lexington | 31% | $1,541 | $297,700 | 24,585 | $1,545 |
What fills Lexington rentals
Roughly 7.6% of employed people in Lexington are self-employed, a base of investors and landlords for whom a rent-based loan is a practical option. The same survey shows government workers are about 17% of employment, 51% of adults hold a bachelor's degree or higher and 11% of commuters travel 45 minutes or more.
Wikipedia's employer table for Lexington for 2022 names Lexington School District 1, Lexington County, Walmart, Town of Lexington and Publix among the largest employers, a useful starting point for judging how steady renter demand is. On the logistics side, interstate access via I-20 and air service through Columbia Metropolitan Airport are noted for Lexington.
Before you make an offer in Lexington
Bring the Lexington numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More South Carolina markets
- All South Carolina DSCR loans
- DSCR loans in Columbia, SC
- DSCR loans in Aiken, SC
- DSCR loans in Sumter, SC
- Every market we cover
Source links
- FEMA county hazard table
- Background reading: Lexington, South Carolina
- Deposit statute: S.C. Code Ann. § 27-40-410
- South Carolina tax source: SCDOR accommodations tax
- For nightly stays in Lexington: S.C. Code 12-36-920
- American Community Survey tables, South Carolina
Census figures are 2020 to 2024 ACS five-year estimates for Lexington and carry margins of error. For South Carolina tenant law we used RedFlagLease under CC BY 4.0 plus the linked statutes. Our check date is October 2026, so look for newer Lexington rules before you commit.
Quick file checklist
Ask the seller for twelve months of utility bills and any lease on the Lexington property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Lexington rental?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Lexington median rent is $1,545.
What payment can a Lexington rent support?
Every piece of PITIA is in the denominator. With $1,545 in rent, a 1.25 lender allows about $1,236, leaving $1,108 after median taxes of $128 a month.
What does Lexington County charge in property tax, in practice?
Median taxes paid are $1,541 a year, or 0.52% of median value, compared with 0.48% statewide. Ask Lexington County's tax office what the bill becomes after your sale.
Can nightly stays at a Lexington property support a DSCR file?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Lexington and any HOA permit stays under 30 days, and that you can register for South Carolina lodging tax.
What does South Carolina law say about deposits at a Lexington rental?
Limit: No cap on the amount in the Residential Landlord and Tenant Act. Return: 30 days. Statute: S.C. Code Ann. § 27-40-410. Confirm current text before you rely on it.
Should I worry about hazards at a Lexington property?
The county scores relatively moderate overall in FEMA's index, with ice storms leading. Parcel-level flood maps and a real insurance quote give the answer that counts.
Can I close a Lexington DSCR loan in an LLC?
Not required. An LLC borrower is routine for investor programs, with entity paperwork and a guaranty. Form the company before you go under contract in Lexington.