Nevada apartment cap-rate evidence
Northmarq reports H1 2026 Las Vegas apartment sale caps ranging from 4.1% for strong new product to 5.4% for older value-add assets. Lee’s Q2 Reno table shows a 5.4% cap benchmark, unchanged from its displayed prior-year value. A sale range and a provider benchmark are different statistics; they do not establish a Nevada average.
Cap rate is annual net operating income (NOI) divided by price, before financing. The right comparison starts with the property type, legal income, observation period and source method. There is no defensible statewide average in this edition.
| Geography / source | Cap / comparison | Period / statistic | Coverage boundary |
|---|---|---|---|
| Las Vegas Northmarq — Las Vegas Q2 2026 | 4.10–5.40% | H1 2026 sales / Q2 report Reported transaction range by asset quality | Ten total deals; only five market-rate properties of 100+ units. Cap-reporting count undisclosed. |
| Reno Lee & Associates — Reno Q2 2026 | 5.40% 0 bps vs 5.40% | Q2 2026 vs Q2 2025 Publisher cap benchmark; closed-sale-only basis not disclosed | CoStar/proprietary lineage; not a matched sale average or neighborhood cap. |
Las Vegas’ endpoints describe traded assets of different quality, not the fair-value range for every building. Reno’s reported point is not directly comparable with either endpoint. Cap NOI conventions, weighting and cap-reporting sample sizes are undisclosed. Lee’s newest Q2 Reno table revises earlier displayed quarters relative to its Q1 report; use one edition rather than splicing vintages. One percentage point equals 100 basis points. No incompatible series are averaged.
The underwriting implication: Las Vegas still needs to convert concession-supported leasing into income. Reno’s tighter operating story is more favorable, but conflicting provider coverage makes the exact improvement uncertain. Neither conclusion replaces matched sales and a buyer expense budget.
What the evidence changes locally
| Geography / period | Measure / value | Basis and limits |
|---|---|---|
| Las Vegas Q2 2026 | Stabilized vacancy / monthly asking rent 9.4% / $1,507 | Northmarq/CoStar; vacancy +120 bps YoY, rent −2.2% YoY Northmarq — Las Vegas Q2 2026 |
| Summerlin/Spring Valley Q2 2026 | Vacancy 7.7% | Publisher operating submarket; no local cap inferred Northmarq — Las Vegas Q2 2026 |
| Reno — Lee coverage Q2 2026 | Vacancy / under construction 6.2% / 149 units | Lee inventory 48,568; provider definitions not reconciled to Colliers Lee & Associates — Reno Q2 2026 |
| Northern Nevada — Colliers coverage Q2 2026 | Vacancy / under construction 3.0% / 1,981 units | Affordable supply included; never averaged with Lee Colliers — Northern Nevada Q2 2026 |
Las Vegas: occupancy recovery is still being purchased with incentives
Observed evidence. Northmarq’s Q2 report shows 9.4% stabilized vacancy and asking rent of $1,507 monthly, down 2.2% annually. It describes concessions averaging about one month of free rent. H1 sales totaled ten transactions; the 4.1–5.4% cap range reflects different asset quality.
An occupied unit with a free month does not collect twelve months of face rent. A buyer using the advertised rent and a physical vacancy rate can overstate income if incentives and arrears are omitted. Thin sale volume also gives asset mix more influence over cap endpoints.
RentalCalcs interpretation. Use stabilization with explicit income downside. Selective new-product compression can occur without proving recovery in older workforce apartments. Require effective collections and a matching capital plan before capitalizing a lower yield.
What would change the view. Improving absorption and fewer future starts favor recovery. But if concessions persist at renewals or financing tightens, a smaller future pipeline will not rescue today’s margin.
Before an offer: Reconcile concessions, bad debt and renewal income to banked collections. Compare a twelve-month economic loss allowance with the advertised physical occupancy before selecting debt.
Evidence: Northmarq — Las Vegas Q2 2026
Summerlin/Spring Valley and Enterprise: delivery timing matters more than a metro label
Observed evidence. Northmarq identifies nearly half of the pipeline in western and southern submarkets, about 2,940 units combined in Summerlin/Spring Valley and Enterprise. Summerlin/Spring Valley vacancy is 7.7% in the report. Those are operating facts; no local cap-rate sample is supplied.
A tight current vacancy rate can coexist with substantial construction that competes later in the hold. A newer subject may face direct amenity and incentive competition, while an older property needs a different rent and renovation comparison.
RentalCalcs interpretation. Do not pay for forecast scarcity before inspecting the actual delivery calendar. A stabilization case needs evidence of leasing at sustainable effective rents after nearby completions; compression is an additional capital-markets assumption.
What would change the view. Delayed competing projects or sustained high-wage renter demand could absorb the pipeline faster. Simultaneous openings and rising free-rent offers would invalidate a clean near-term rent reset.
Before an offer: Build a project-by-project competition calendar, not a metro annual rent-growth assumption. Ask which tenants choose the subject over each new lease-up and what incentive closes that choice.
Evidence: Northmarq — Las Vegas Q2 2026
Older central Las Vegas and the Strip: discount the work and income risk separately
Observed evidence. Northmarq places vacancy in the older central core, including North Las Vegas and the Strip, around 11–12%. Its Strip asking-rent series declined 4.3% annually. The sales discussion distinguishes institutional new-product demand from private/regional interest in older assets.
A cheaper price per door can reflect both lower sustainable revenue and a repair burden. Tourism adjacency is not equivalent to a twelve-month residential tenant income profile; verify the actual rent roll’s employment and collection risks.
RentalCalcs interpretation. Expansion remains a meaningful downside for buildings that cannot restore collections while funding HVAC, plumbing and other work. A value-add label does not make a renovation premium achievable.
What would change the view. Documented renewals, completed cost-effective repairs and a stable local comp set would weaken that downside. Continuing turnover or competition from discounted new units would strengthen it.
Before an offer: Inspect cooling systems, utility responsibility, vacancy duration and actual arrears. Put immediate work in invested cash and recurring maintenance in NOI; neither should disappear inside a higher headline cap.
Evidence: Northmarq — Las Vegas Q2 2026 · Nevada Legislature — NRS 118A.300
Reno/Sparks: a favorable direction with an unresolved coverage gap
Observed evidence. Lee’s Q2 table reports 6.2% vacancy, $1,741 rounded monthly asking rent and a 5.4% cap benchmark. Colliers separately reports 3.0% vacancy, with South Reno and Sparks/Fernley at 2.5%, and 1,981 units under construction. Lee’s table has only 149 units under construction.
The difference is too large to treat as rounding. Inventory eligibility, geography, affordable housing and rent methodology can change the denominator. Colliers emphasizes affordable development and the distinction between premium South Reno and relatively lower-cost Sparks/Fernley; Lee uses another market inventory.
RentalCalcs interpretation. Both sources support a tightening operating direction, but not one reconciled vacancy or pipeline number. Selective compression is plausible after sustainable collections improve; its magnitude cannot be inferred from the gap between providers.
What would change the view. Colliers cautions that employment and population growth have not returned to prior boom levels. New affordable supply and slower demand could limit conventional rent gains. A clarified common-property sample would be needed to resolve the exact tightness.
Before an offer: Select the provider inventory that matches the subject, then obtain local closed sales with actual NOI. Compare South Reno premium rents with the subject’s quality and Sparks/Fernley commuter costs; do not transfer a 2.5% submarket vacancy into a guaranteed property budget.
Evidence: Lee & Associates — Reno Q2 2026 · Colliers — Northern Nevada Q2 2026
Secondary markets, submarkets and the boundary of the data
Neighborhood cap rates need neighborhood sales with a documented NOI basis. Metro operating conditions can guide a property investigation; they cannot manufacture a local cap. These gaps matter when selecting comparable sales and budgeting liquidity.
| Market | Available evidence | What is missing | Next underwriting action |
|---|---|---|---|
| Henderson | Northmarq includes recent Henderson sale context and metro construction. | No separate verified Henderson cap sample. | Match property age, lease-up status and buyer work; the sale-range endpoints are not a city quote. |
| Carson City / Fernley / outlying Washoe and Lyon | Colliers discusses Sparks/Fernley as its own operating submarket. | No cap series for each municipality; metro boundaries are provider-defined. | Check commuting costs, actual employment exposure, well/septic or municipal utility expenses and exit buyer depth. |
| Elko / rural Nevada / resort markets | No matching current apartment NOI cap cohort included. | Mining, seasonal or short-term demand is outside this conventional-apartment comparison. | Require local collections and employment/lease evidence, liquidity stress and asset-specific sale comps. |
County tools answer a different screening question. County housing context and rent-to-value models are not matched-property NOI caps: Clark County screening · Washoe County screening.
Compression, stabilization or expansion?
Observed evidence: the Las Vegas transaction range reflects segmentation during a still-competitive supply cycle. Reno’s provider benchmark is flat while operating conditions improve within each source’s own series. Neither measures a statewide change.
Publisher perspectives: Northmarq expects Las Vegas to hold near current operating levels before improvement in 2027. Lee’s Reno commentary favors stability from a modest pipeline, while Colliers finds tighter vacancy but a much larger affordable-development pipeline and cautions about slower demand growth. Their disagreement is materially about coverage and supply composition.
Lineage: Northmarq and Lee both list CoStar inputs, so agreement is not independent transaction corroboration. Colliers’ operating view is a different public perspective, but the available inventory definitions do not justify merging its vacancy with Lee’s cap benchmark into one purportedly coherent dataset.
RentalCalcs working case: separate Las Vegas’ concession burn-off from Reno’s supply composition. Use flat caps for the reference acquisition and stress both income and a wider exit. A fall in policy rates alone does not specify the loan spread, proceeds or return a buyer will accept.
Compression
Las Vegas incentives recede or Reno collects durable renewal gains, while lender competition improves executable financing.
Watch: Effective rent, incentives, matched cap-reporting sales and property loan quotes.
Invalidated or weakened by: Leasing supported by continued free rent, changing sale quality or provider inventory changes masquerading as growth.
Underwrite: Require current buyer NOI to support the purchase; treat a tighter exit as upside after evidence.
Stabilization — working case
Supply absorption and buyer yield requirements balance, with different outcomes by vintage and location.
Watch: Competing delivery dates, actual collections, insurance and property-tax notices.
Invalidated or weakened by: Sustained NOI deterioration or broad matched-sale repricing.
Underwrite: Use flat-cap reference values and explicit operating/capital reserves.
Expansion
Older properties lose economic occupancy, costs rise or refinancing shortfalls reduce the price buyers can pay.
Watch: Renewal concessions, arrears, system-replacement bids and debt coverage.
Invalidated or weakened by: Stable collected income after all buyer costs and broader sales at unchanged yields.
Underwrite: Stress lower NOI with a wider cap and additional equity cash, rather than relying on refinancing.
These are conditional editorial cases, not probabilities or publisher basis-point forecasts. A lower short-term policy rate does not guarantee a cheaper property loan: the Treasury curve, lender spread, amortization and proceeds all matter. Cap spreads alone do not measure total risk.
Separate the income decision from the cap-rate decision
Value = annual NOI ÷ (cap rate ÷ 100). At $110,000 NOI and a 5.50% cap, value is $2,000,000. Widening the cap by 100 basis points to 6.50%, with NOI unchanged, changes gross value by -15.4%. A one-point cap move is not a one-percent price move.
- Convert occupancy to collected incomeNormalize free rent, arrears and renewal incentives; Las Vegas physical leasing is not all cash revenue.
- Choose the right source inventoryKeep Lee and Colliers Reno definitions separate; investigate affordable versus conventional competition.
- Quote and inspect buyer costsConfirm tax abatement, commercial coverage and cooling/heating, roof and utility work.
- Match sales and size debtSeparate new institutional transactions from older value-add; stress NOI and exit cap before choosing leverage.
Original underwriting sequence for Nevada. Choose an exit yield independently of the income growth needed to justify the deal.
| Cumulative NOI change | 4.50% exit cap | 5.50% exit cap | 6.50% exit cap | 7.50% exit cap |
|---|---|---|---|---|
| -10% total | +10.0% | -10.0% | -23.8% | -34.0% |
| 0% total | +22.2% | 0.0% | -15.4% | -26.7% |
| +10% total | +34.4% | +10.0% | -6.9% | -19.3% |
| +20% total | +46.7% | +20.0% | +1.5% | -12.0% |
Original calculations. This reference table does not change with the tool. NOI growth is cumulative, not annual. Simple property values exclude debt payoff, sale costs, income/capital-gains taxes and interim cash flows; they are not total investment returns.
One acquisition, one reconciled buyer budget
This hypothetical 20-unit purchase illustrates the report’s decision process; it is not a listing, appraisal or local cost quote. Replace each assumption with property evidence. Every line below belongs to the same acquisition.
| Budget line | Annual amount | Basis |
|---|---|---|
| Scheduled income | $300,000 | 20 units × $1,250 monthly × 12 |
| Vacancy, concessions and collection loss | −$30,000 | 10.0% of scheduled; one combined deduction |
| Effective collected income | $270,000 | Scheduled less combined loss |
| Buyer property taxes | $30,000 | Illustrative buyer expense; verify actual evidence |
| Insurance | $18,000 | Illustrative buyer expense; verify actual evidence |
| Management | $13,500 | Illustrative buyer expense; verify actual evidence |
| Recurring repairs | $28,000 | Illustrative buyer expense; verify actual evidence |
| Owner utilities | $26,000 | Illustrative buyer expense; verify actual evidence |
| Administration and recurring compliance | $44,500 | Illustrative buyer expense; verify actual evidence |
| Recurring expense total | $160,000 | Sum of six operating rows |
| NOI / going-in cap | $110,000 / 5.50% | Before debt, replacement reserve and income tax |
Verify the actual Nevada tax abatement
Nevada Taxation distinguishes qualifying residential-rental abatements from the general tax-cap framework. Eligibility depends on collected rents and applicable rules; a residential label alone does not establish a 3% cap. Ask the assessor for the parcel’s current classification, taxable value, abatement and treatment of improvements. No California-style sale-price reset is assumed. Nevada Taxation — Local government publications.
Obtain commercial-habitational coverage for the location
Nevada DOI offers a commercial-habitational shopping tool; availability is not a binding quote. Compare replacement values, deductibles, exclusions and interruption terms. Northern Nevada seismic/wildfire diligence and Southern Nevada cooling/water-system diligence require property evidence; an annual premium cannot finance every uncovered loss or system replacement. Nevada DOI — Commercial habitational coverage tools.
Time revenue changes lawfully
NRS 118A.300 generally requires 60 days’ written notice of an increase, or 30 days for periodic tenancies shorter than a month. Lease terms and other applicable requirements still matter. Model the actual start date rather than assuming every rent changes at acquisition. Nevada Legislature — NRS 118A.300.
| Measure | Amount / treatment |
|---|---|
| Loan / interest / amortization | $1,100,000 / 6.5% / 30 years |
| Annual debt service | $83,433 |
| Replacement reserve below NOI | $12,000 per year |
| Invested cash | $1,100,000 = $900,000 down + $60,000 closing + $140,000 immediate capital work |
| Cash after debt and reserve | $14,567; cash-on-cash 1.32%, before income tax |
| DSCR / debt yield before reserves | 1.32× / 10.00% |
| DSCR after replacement reserve | 1.17×; confirm lender convention |
The mortgage constant is 7.58%. Lender sizing may be limited by coverage, leverage, debt yield or reserve-adjusted NOI. A hypothetical 1.25× coverage requirement before reserves would allow $88,000 annual debt service; this is a sizing illustration, not a universal lender rule. Yield on total acquisition cost, using current NOI and price plus closing and immediate work, is 5.00%. It differs from the going-in cap; future stabilized yield on cost would need a separate earned NOI and all carrying/rehabilitation costs.
Core report analysis is free. Enter your assumptions again in the linked calculator; they do not transfer automatically. A tool click is separate from a completed calculation or saved analysis.
Before relying on Nevada cap-rate evidence
What is the average Nevada cap rate?
No defensible statewide average is supplied. Las Vegas has a reported quality-dependent sale range and Reno a separate provider benchmark. Their definitions and inventory cannot be averaged into a property pricing rule.
Why are Reno vacancy figures so different?
Lee reports 6.2% and Colliers 3.0% in Q2. Their construction totals differ sharply too. The public evidence does not reconcile inventory eligibility and affordable coverage, so this report preserves both series instead of choosing or averaging them.
Does a Las Vegas Class A cap apply to a fourplex?
No. The H1 sales discussion is dominated by different asset sizes and buyer structures; a fourplex may compete with small investors and use different debt. Obtain matching closed sales and buyer NOI.
Keep the evidence with the offer
Record the comp basis, buyer budget, debt sizing, capital work and the fact that would change your thesis.
Open the free printable Nevada worksheetCheck what belongs in NOI · Compare California’s separately researched report · Nevada county directory
Sources, lineage and refresh policy
Accessed and substantively reviewed October 18, 2026. Each observation retains its actual period. Public summaries often omit cap-reporting sample size, NOI convention and weighting; no missing field is inferred. Brokerages have commercial advisory interests. Publications sharing CoStar, RCA/MSCI or one proprietary database do not establish independent corroboration.
Read the full source ledger, methods and refresh triggers
- Northmarq — Las Vegas Q2 2026
Observation / applicability: Q2 2026 operations; H1 sales. Publication: July 24, 2026 companion article. Access and review: October 18, 2026.
Underlying provider: Northmarq/CoStar operations, development and sales; BLS employment Geography / asset: Greater Las Vegas apartments; stabilized vacancy and quality tiers
Statistic, NOI, sample, weighting and limits: Reported sale-cap range 4.1–5.4%; ten all-sales transactions, not cap-reporting count. Five market-rate 100+-unit deals. NOI and cap weighting undisclosed. PDF sales page 4 visually checked; local operating facts do not establish local cap rates.
Refresh trigger: Q3 report or corrections.
- Lee & Associates — Reno Q2 2026
Observation / applicability: Q2 2026 with quarterly comparator table. Publication: July 2026 path; day unstated. Access and review: October 18, 2026.
Underlying provider: CoStar and Lee proprietary data among listed sources Geography / asset: Publisher Reno multifamily inventory, 48,568 units
Statistic, NOI, sample, weighting and limits: 5.4% cap benchmark; sale-only basis, sample, weighting and NOI undisclosed. Visually checked page 1. Q2 vintage revises earlier quarterly indicators relative to Q1 publication. Not spliced with Colliers.
Refresh trigger: Next edition, revision or provider methodology clarification.
- Colliers — Northern Nevada Q2 2026
Observation / applicability: Q2 2026. Publication: August 11, 2026. Access and review: October 18, 2026.
Underlying provider: Colliers operating research; public summary does not fully document inventory eligibility Geography / asset: Northern Nevada multifamily including affordable construction
Statistic, NOI, sample, weighting and limits: 3.0% vacancy and 1,981 units under construction; local vacancy observations. No cap imported. Scope not reconciled to Lee inventory.
Refresh trigger: New quarter and inventory-definition clarification.
- Nevada Taxation — Local government publications
Observation / applicability: FY2026–27 rent/abatement references and current guidance. Publication: Multiple dated tables. Access and review: October 18, 2026.
Underlying provider: Nevada Department of Taxation Geography / asset: Nevada property taxation; parcel eligibility unresolved
Statistic, NOI, sample, weighting and limits: Qualifying residential rental versus general abatement; not a blanket tax or cap rate. Centrally assessed capitalization studies are not apartment sale caps.
Refresh trigger: Annual abatement tables and parcel classification.
- Nevada DOI — Commercial habitational coverage tools
Observation / applicability: Tool availability accessed October 18, 2026. Publication: August 5, 2024. Access and review: October 18, 2026.
Underlying provider: Nevada Division of Insurance Geography / asset: Nevada commercial-habitational insurance
Statistic, NOI, sample, weighting and limits: Shopping reference, not coverage confirmation or premium estimate.
Refresh trigger: Binding quote, renewal and insurer appetite changes.
- Nevada Legislature — NRS 118A.300
Observation / applicability: Current codification at review. Publication: Statutory compilation. Access and review: October 18, 2026.
Underlying provider: Nevada Legislature Geography / asset: Covered dwelling tenancies
Statistic, NOI, sample, weighting and limits: 60/30-day notice framework; lease and property applicability require review. No automatic acquisition rent increase.
Refresh trigger: Law/lease change.
- CBRE — U.S. Cap Rate Survey H1 2026
Observation / applicability: Late June 2026 survey; six-month expectations. Publication: August 12, 2026. Access and review: October 18, 2026.
Underlying provider: More than 200 CBRE professionals; 3,600 estimates Geography / asset: National commercial-property sentiment
Statistic, NOI, sample, weighting and limits: Professional estimates and expectations; not a NY transaction series. No state probabilities inferred.
Refresh trigger: H2 survey or material financing change.
Research editions are checked against publisher directories; coverage gaps and unresolved contradictions remain beside the affected evidence. Photographs provide archival building/location context, not current property condition or appraised sale evidence. The original contribution is the comparison, underwriting logic and reproducible scenarios. Review dates advance only after substantive checking.
Send a correction with the source URL, geography and observation date.