What is the cap rate in Las Vegas, NV?

The median cap rate in Las Vegas, NV is 3.9%. This is based on HUD Fair Market Rents and current home values.

Is Las Vegas a good place to buy rental property?

Las Vegas has a cap rate of 3.9% and estimated cash flow of -$819/month. Cash flow is challenging at current prices. Median home price is $415,341 with average 3BR rent of $2,440/month.

What is the average rent in Las Vegas, NV?

The HUD Fair Market Rent for a 3-bedroom in Las Vegas, NV is $2,440/month. This represents the estimated rent for standard-quality housing in the area.

Las Vegas, NV — Rental Investment Analysis

🔴WEAK— appreciation play only

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, Las Vegas, NV has a 3.9% cap rate, indicating limited cash flow potential at current prices of $415,341 median.

Las Vegas is primarily an appreciation play with limited cash flow potential. At $415,341 median home price, Las Vegas requires significant capital. A 20% down payment alone is $83,068. With 3-bedroom rents around $2,440/month, the 3.9% cap rate tells the story. Cash flow is deeply negative at -$819/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.57% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.62 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Consider Las Vegas only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.

Cap Rate

3.9%

Below average

Monthly Cash Flow

-$819

After all expenses

Price-to-Rent

14.6

Investor-friendly

DSCR

0.62

Fails

Key Metrics

Median Home Price: $415,341
Average Rent (3BR): $2,440/mo
Price-to-Rent Ratio: 14.6(good)
1% Rule: 0.57%(fails — need 1%+)
Cash-on-Cash Return: -10.7%
Vacancy Rate: 8.0%

Market Strength

Unemployment Rate: 5.3%(+1% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: +0.7% YoY

Assumptions Used

20% down, 6.52% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

0.53%

of assessed value (NV avg)

Median Income

$65,686

household (NV avg)

Rent-to-Income

44.6%

Stretched

Section 8 Max Rent

$2,440/mo

3BR voucher payment

NV Investor Climate

Landlord Friendly

6/10

State Income Tax

None

Property Tax

0.53% effective

Population Trend

+0.7% (3yr)

Population Movement (Tax Year 2021→2022)

Net Migration

+11,122 households

GROWING

Total Inflow

944,574

households moved in

Avg Income (New Residents)

$95,995

per household

Where they're coming from:

1.Clark Non-migrants, NV901,867 households · avg $95,395

2.Los Angeles, CA7,187 households · avg $88,485

3.Orange, CA2,098 households · avg $257,605

4.San Diego, CA1,968 households · avg $115,951

5.San Bernardino, CA1,786 households · avg $60,403

Where residents are leaving to:

1.Clark Non-migrants, NV901,867 households

2.Los Angeles, CA3,068 households

3.Maricopa, AZ1,595 households

4.San Diego, CA1,133 households

5.Nye, NV999 households

Strong net inflow suggests growing rental demand and upward pressure on rents.

Best Zip Codes in Las Vegas for Investors

89103

Cap Rate: 6.4%Cash Flow: +$3/mo$264,868

89119

Cap Rate: 5.8%Cash Flow: -$131/mo$271,364

89118

Cap Rate: 5.8%Cash Flow: -$169/mo$330,517

All Zip Codes in Las Vegas

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
89103	6.4%	+$3	$264,868	$2,180/mo	1.00
89119	5.8%	-$131	$271,364	$2,070/mo	0.91
89118	5.8%	-$169	$330,517	$2,510/mo	0.90
89169	5.3%	-$242	$279,311	$2,000/mo	0.84
89179	5.0%	-$535	$478,562	$3,280/mo	0.79
89134	4.8%	-$669	$495,981	$3,260/mo	0.75
89143	4.6%	-$705	$472,085	$3,020/mo	0.72
89183	4.6%	-$632	$414,952	$2,640/mo	0.71
89178	4.5%	-$747	$480,679	$3,040/mo	0.71
89147	4.5%	-$659	$415,341	$2,610/mo	0.70
89145	4.5%	-$630	$390,409	$2,440/mo	0.70
89108	4.3%	-$614	$360,042	$2,210/mo	0.68
89128	4.3%	-$693	$388,824	$2,350/mo	0.66
89141	4.3%	-$940	$528,802	$3,200/mo	0.67
89130	4.2%	-$813	$444,274	$2,660/mo	0.66
89123	4.2%	-$819	$439,122	$2,610/mo	0.65
89129	4.1%	-$857	$445,983	$2,620/mo	0.64
89101	4.1%	-$615	$318,863	$1,870/mo	0.64
89107	4.1%	-$679	$351,473	$2,060/mo	0.64
89122	4.0%	-$693	$354,638	$2,070/mo	0.63
89144	3.9%	-$1,072	$526,602	$3,020/mo	0.62
89166	3.9%	-$1,021	$500,740	$2,870/mo	0.62
89115	3.9%	-$670	$326,942	$1,870/mo	0.62
89121	3.9%	-$734	$355,983	$2,030/mo	0.61
89148	3.9%	-$995	$473,766	$2,680/mo	0.61
89110	3.8%	-$767	$359,614	$2,020/mo	0.60
89142	3.8%	-$792	$364,502	$2,030/mo	0.59
89106	3.8%	-$740	$337,335	$1,870/mo	0.59
89113	3.8%	-$1,050	$478,255	$2,650/mo	0.59
89146	3.7%	-$892	$403,771	$2,230/mo	0.58
89139	3.7%	-$1,047	$466,928	$2,560/mo	0.58
89102	3.6%	-$865	$376,541	$2,040/mo	0.57
89120	3.6%	-$952	$412,669	$2,230/mo	0.57
89156	3.5%	-$849	$359,614	$1,920/mo	0.56
89117	3.5%	-$1,161	$482,491	$2,550/mo	0.55
89104	3.5%	-$882	$360,819	$1,890/mo	0.54
89109	3.2%	-$1,009	$377,282	$1,870/mo	0.50
89149	3.0%	-$1,387	$499,054	$2,410/mo	0.48
89135	3.0%	-$2,021	$722,144	$3,470/mo	0.47
89131	2.8%	-$1,637	$541,027	$2,450/mo	0.43
89138	2.7%	-$2,428	$782,478	$3,470/mo	0.42
89124	2.3%	-$1,759	$520,253	$2,130/mo	0.36
89158	1.9%	-$2,339	$628,153	$2,310/mo	0.30
89004	1.8%	-$2,631	$694,534	$2,500/mo	0.29
89161	0.6%	-$4,959	$1,033,956	$2,450/mo	0.10