Fayette County is home to Lexington, Kentucky's second-largest city and the heart of the Bluegrass Region. Known for horse farms, rolling pastures, and strong land values, Fayette County offers urban amenities alongside agricultural heritage. County seat: Lexington. Lyon County, located in Western Kentucky with Eddyville as its seat and a population near 8,210, is known for its recreational opportunities around Lake Barkley and Kentucky Lake, presenting land buyers with prime locations for building a waterside retreat or a homestead with ample outdoor leisure.