The 5 Best Places to Buy Rental Property in Nevada

By Barbara Bellesi Zito

Posted on July 8th, 2022

Henderson | Las Vegas | Reno | North Las Vegas | Spring Valley

Photo of Las Vegas sign at sunset

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Real estate investing can seem like a gamble — but depending on where you buy, you could end up hitting the jackpot with a Nevada rental property.

Beyond short-term rentals that cater to tourists at the Las Vegas strip, Nevada cities like Henderson and Reno provide ample opportunities for real estate investors.

Nationally, property values across the country have more than doubled over the past decade. According to the Zillow Home Value Index the typical value of a home in the United States is currently $337,560 — a 21% leap since last year.

In Nevada, home values are even higher. In Nevada's five most populous cities, home values have soared between 25% and 33% since 2021. Investors who bought before these spikes have seen their property values appreciate fast.

To identify the best real estate markets in the Silver State, we analyzed property investment opportunities in the five most populous cities based on:

  • Affordability
  • Investment potential
  • Rental rates
  • Area amenities

Curious about investment opportunities in one of the cities on our list? An experienced local real estate agent can talk you through opportunities in your budget.

Our friends at Clever Real Estate make it easy to connect with top-rated real estate agents in Nevada. Clever is a free, no-obligation agent matching service that will introduce you to qualified, pre-vetted realtors from trusted brokerages including Keller Williams, RE/MAX, and Coldwell Banker.

Plus, Clever Cash Back will put 0.5% of the property's sale price back in your pocket after closing. In Nevada, where the median price for a single-family home is $454,967, that's up to $2,275!

👋 Contact Clever's licensed concierge team to meet top-rated real estate agents in Nevada today!

1. The Best Place to Buy Rental Property in Nevada: Henderson

According to the Zillow Home Value Index, properties in Henderson are typically $494,264 and have gone up nearly 32% in the past year alone. The average rent for a two-bedroom apartment is $1,968, up 28% from last year, according to Rent.com.

While apartment landlords could see a nice return on their investment, the reason Henderson tops our list is that there is an incredible opportunity in the short-term rental market. In fact, it’s one of the best cities for an Airbnb investment.

According to AirDNA, a platform that collects short-term rental data from Airbnb and VRBO, the average daily rate for vacation rentals is $320, with an occupancy rate of 71%. Henderson is only 20 minutes away from the bright lights and buzzing casinos in Las Vegas — a perfect home base for out of town visitors.

As the second largest city in Nevada, Henderson also has plenty of amenities and attractions in its own right. Outdoor enthusiasts in particular will enjoy hiking or biking the 34-mile River Mountain Loop Trail, which is also open to riders on horseback. Golfers can take to the links at Rio Secco Golf Club, while nature lovers can admire the wildlife at the Lion Habitat Ranch or the Henderson Bird Viewing Preserve.

2. Las Vegas

Las Vegas homes are typically around $421,557, a 33% increase over last year's home values. Two-bedroom apartments in Las Vegas typically rent for an average of $1,620, up 20% from last year, according to Rent.com.

As Las Vegas is such a draw for both tourists and business travelers, investors can expect to capitalize on the high demand in the short-term rental market. Airbnb data shows that the average daily rate for Las Vegas rentals is $228, with a 64% occupancy rate. The median monthly revenue is $3,040, which could be a handsome income stream for a property investor.

Of course, Vegas is internationally renowned for its vibrant nightlife, world-class casinos, and epic entertainment. Thousands of entertainers and hospitality professionals ensure visitors are dazzled by the city — and other top professions in the area include health care and education. Since about 37% of residents are renters, Vegas is a nice bet for those seeking investment apartments.

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3. Reno

The typical Reno home is worth $571,719, according to Zillow — by far the highest property value among Nevada's five biggest cities. A two-bedroom apartment averages $1,845 in monthly rent, up 10% over rents from last year, per Rent.com.

In the short-term rental market, units in Reno can nab $194 per day at an occupancy rate of 70%, according to AirDNA. The median monthly revenue rate is $2,799, making a Reno rental an ace in the hand for a property investor.

Situated on the border of Nevada and California, Reno is known for its casinos and proximity to Lake Tahoe. It’s also become a major tech hub, thanks to major companies like Amazon, Microsoft, Google, and Apple setting up shop here. All those professionals need a place to live, and so investors have an opportunity to hit it big in Reno.

4. North Las Vegas

The real estate market is heating up in North Las Vegas — and not just because of its location in the Mojave Desert. Properties here typically cost $402,100, up 33% year-over-year. A two-bedroom apartment in North Las Vegas rents for an average of $1,475 per month, up 6% from last year, according to Rent.com.

Investors who are interested in the short-term rental market in North Las Vegas could find an impressive return on investment. According to AirDNA, the average daily rate for a unit is $276, at an occupancy rate of 68%. The median monthly income is an impressive $4,152, which will make many investors want to double down in this hot real estate market.

North Las Vegas is a little more than eight miles from the Vegas Strip. It's a convenient location for hospitality professionals, but it also attracts employees in other industries. North Las Vegas is known as the home of Bigelow Aerospace headquarters, plus it's a manufacturing, industrial, and warehouse hub.

5. Spring Valley

Spring Valley is a Las Vegas suburb about two miles west of the Strip. There, you’ll find typical home values to be around $425,189, up 33% from last year. A one-bedroom apartment typically goes for the hefty sum of $2,105.

Spring Valley has earned a reputation as one of the best places to live in Nevada. This well-populated suburb is a popular spot for young professionals, thanks to its abundance of local cafés, restaurants, and bars.

For residents and visitors with outdoorsy interests, Spring Valley State Park offers a literal breath of fresh air. There are plenty of recreational activities on the water at the Eagle Valley Reservoir.

Next Steps for Your Rental Property Investment

From Henderson's booming short term rental market to Spring Valley's bustling local scene, Nevada offers a wealth of real estate investment opportunities.

If you're thinking about investing in Nevada, we recommend getting the scoop from a local real estate agent. A great agent can help you spot promising rental property opportunities, get into up-and-coming markets early, and negotiate for the best deal. Our friends at Clever Real Estate make it easy to shop around for an agent in Nevada — and since it's free to meet agents through Clever, with zero obligation, there's zero risk!

Best of all, real estate investors who find an agent through Clever can easily take advantage of Nevada's buyer rebate opportunities. You can get up to 0.5% cash back at closing — which you can to fix up your new rental property or even to splurge on the Strip.

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FAQs

What is the best place to buy rental property in Nevada?

Henderson is the best place to buy rental property in Nevada, followed by Las Vegas and Reno. Learn how population growth, job opportunities, and home values impact rental property investments.

Is rental property a good investment?

In general, rental property is considered a sound investment, but a rental property's success or failure depends on both local market conditions and business strategy. Learn how to spot good investment opportunities — and save time, energy, and money — before buying a rental property in Nevada.

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Posted in Buying a House, Real Estate Investing