Cap rates 4.2–5.0% · Median price $380,000 · Median rent $1,800/mo · Population 650K
Las Vegas offers no state income tax, strong STR demand on and near the Strip, and a recovering economy diversifying beyond gaming into tech and logistics. Investor-friendly Nevada laws are a major advantage.
Here's what the numbers look like on a typical Las Vegas rental at current market rates (20% down, 7.5% rate, standard expenses):
| Metric | As-Is (Current Rents) | Stabilized (Market Rents) |
|---|---|---|
| Purchase Price | $380,000 | $380,000 |
| Down Payment (20%) | $76,000 | $76,000 |
| Monthly Rent | $1,620 | $1,800 |
| Monthly Mortgage | $2,126 | $2,126 |
| Monthly OpEx (est 35%) | $567 | $630 |
| Est. Monthly Cash Flow | $-1,073/mo | $-956/mo |
| Cap Rate | 3.3% | 3.7% |
* Estimates only. Uses 20% down, 7.5% rate, 30yr term, 35% expense ratio, 5% vacancy. Run your own numbers with the calculator below.
Best for cash flow: Focus on workforce housing in established neighborhoods with strong employer anchors. Avoid chasing the highest raw yield numbers — the 10% cap rate in a declining neighborhood often means vacancy and management headaches that destroy returns.
Best for appreciation: Target neighborhoods within 2 miles of job centers, universities, or transit that are in the early stages of gentrification. Look for the coffee shop / yoga studio signal — amenities follow renters, and renters follow amenities.
Best for STR: Check local STR regulations carefully before investing. Some {name} neighborhoods have restrictions on short-term rentals.
DSCR Loans: Most Las Vegas properties qualify for DSCR financing with a 1.0+ ratio. Use our DSCR Calculator to check qualification before making an offer.