Short-Term vs Long-Term Rental in Las Vegas: The Numbers

Estimates for a typical 3-bedroom house. Figures are modelled from market data; not guaranteed outcomes.

Long-term rental wins by roughly $8,500 per year in net income. Las Vegas short-term rentals generate similar gross revenue but the 13% lodging tax, higher insurance, furnishing costs, and utilities cut deeply into margins.

These are Clark County-level averages. Individual suburbs within Las Vegas range from approximately $1,770 to $2,228 in monthly long-term rent, and sale prices span from around $254,000 to over $1,398,000. Short-term rental income varies even more dramatically by location: a property near the Strip or in a popular Henderson suburb can earn multiples of what a home in outlying areas generates. Whether your property sits at the upper or lower end determines whether the investment works. Suburb-level data is in the dashboard.

Long-Term Rental Performance in Las Vegas

The average 3-bedroom house in Clark County (Clark County) sells for approximately $434,000, with monthly rents estimated at around $2,092. That produces a gross rental yield of roughly 5.8%, which is competitive for a major Sun Belt metro.

Las Vegas has several characteristics that favor long-term rental investors. Population growth has remained strong, driven by Nevada's lack of state income tax and relatively affordable housing compared to neighboring California. The median home price of $434,000 is well below comparable metros like Phoenix or San Diego, while rents remain solid.

Estimated annual LTR costs on a typical property break down approximately as follows:

• Property tax (0.5%): around $2,200
• Insurance: around $1,800
• Maintenance and repairs: around $2,500
• Property management (8%): around $2,000
• Vacancy allowance (5%): around $1,000

Total operating costs of roughly $9,500 leave estimated net income of approximately $15,500 per year, or about $1,290 per month.

Nevada's low property tax rate of approximately 0.5% is a significant advantage. This is roughly half the national average and considerably below states like Texas (1.6%) or Illinois (2.1%). Lower carrying costs mean more cash flow reaches the investor's pocket.

Short-Term Rental Income in Las Vegas

Las Vegas is one of America's top tourist destinations, welcoming over 40 million visitors annually. That tourism engine creates genuine demand for short-term rentals, but the market-level numbers tell a more nuanced story than many investors expect.

The average nightly rate across Clark County sits at approximately $173, with an average occupancy of around 41.1%. That translates to estimated gross annual revenue of roughly $26,000 on a typical 3-bedroom house. On the surface, this slightly exceeds long-term rental gross income. The problem is operating costs.

Estimated annual STR costs include:

• Transient lodging tax (13%): around $3,400
• Property tax (0.5%): around $2,200
• Insurance (STR policy): around $2,500
• Management and cleaning (25% of revenue): around $6,500
• Utilities (host-paid): around $3,600
• Furnishing depreciation and supplies: around $2,000

Total costs of approximately $19,000 leave roughly $7,000 in net annual income.

The 41% occupancy rate is the critical figure. Las Vegas has significant hotel inventory competing for the same guests, and STR supply has grown substantially in recent years. Properties in prime locations (near the Strip, in resort-style communities, or close to convention centers) will outperform this average considerably, while suburban homes may struggle to maintain even this occupancy level.

Short-Term Rental Regulations in Las Vegas

Nevada allows local jurisdictions to regulate short-term rentals independently, creating a patchwork across Clark County. The overall regulatory environment is classified as low restriction, with no night caps for either houses or apartments (365 nights permitted).

Key regulatory details:

• City of Las Vegas: requires a short-term rental license; a 660-foot buffer rule means no two licensed STR properties can operate within 660 feet of each other. This limits density but does not ban the practice.
• Clark County (unincorporated areas): has its own specific rules for STR operations
• Henderson, North Las Vegas, Boulder City: each municipality sets its own requirements
• Transient lodging tax: approximately 13%, collected and remitted to the county. Rates vary slightly by jurisdiction (12% to 14%).
• No state income tax: Nevada does not levy state income tax, which benefits all rental strategies

The 660-foot buffer in the City of Las Vegas is worth noting. It effectively creates a cap on STR density in any given neighborhood, which can be beneficial for operators who secure a license early (less competition nearby) but creates a barrier for latecomers. Check your specific address against existing licensed properties before purchasing.

Property Taxes and Operating Costs

Nevada's property tax structure is one of the most investor-friendly in the country. The effective rate in Clark County averages approximately 0.5%, meaning a $434,000 home carries an annual property tax bill of roughly $2,200. Nevada also caps annual property tax increases at 3% for non-owner-occupied properties, providing cost predictability.

The absence of state income tax further improves net returns. In a state like California, rental income would face a marginal state tax rate of 9% or more; in Nevada, that entire amount stays with the investor. For a property generating $15,500 in net rental income, that's an extra $1,400 or so compared to a California equivalent.

Insurance costs in Las Vegas are moderate. The dry desert climate means minimal flood or hurricane risk, though summer heat creates higher HVAC maintenance needs. STR insurance runs roughly 30% to 40% more than a standard landlord policy due to increased liability exposure.

Comparison to Other Southwest Markets

Comparison of key investment metrics.

Las Vegas offers higher gross rental yields than most Southwest metros, largely because rents have held up while prices remain below Phoenix and the Southern California markets. The 0.5% property tax rate is the standout advantage: it's less than half the national average and well below Arizona's approximately 0.6% or Utah's approximately 0.6%.

Where Las Vegas lags is in STR performance relative to coastal vacation markets. The 41% occupancy reflects the reality that Las Vegas competes with a massive hotel industry offering rooms at aggressive price points. Coastal markets like San Diego or Miami typically see STR occupancy rates of 55% to 65%, translating to significantly higher gross revenue per property.

For long-term rental investors, however, Las Vegas compares favorably. The combination of no state income tax, low property tax, solid population growth, and rents above $2,000 per month makes it one of the stronger cash flow markets in the region. Markets like Nashville offer comparable yields but with higher property taxes and state income tax.

Investment Bottom Line

Las Vegas is a long-term rental market. That statement may surprise investors drawn by the city's tourism brand, but the numbers are clear: LTR generates roughly double the net income of STR on the same property, with far less operational complexity.

The math is straightforward. Both strategies produce approximately $25,000 to $26,000 in gross annual revenue on a typical 3-bedroom house. But STR operating costs (13% lodging tax, management, cleaning, furnishing, higher insurance, host-paid utilities) consume roughly $19,000 of that, while LTR costs sit around $9,500. The $8,500 net income gap is difficult to close unless a property achieves significantly above-average occupancy and nightly rates.

There are scenarios where STR makes sense in Las Vegas: properties very close to the Strip or convention center, unique luxury homes that command $300 or more per night, or investors who self-manage and can keep costs low. But for the average 3-bedroom house in a suburban Clark County neighborhood, the long-term rental path is financially superior.

The low property tax rate and absence of state income tax make Las Vegas particularly attractive for leveraged investors. On a $434,000 property with 20% down and a 6.5% mortgage rate, the estimated monthly mortgage payment of approximately $2,200 is close to the $2,092 average rent, but the low carrying costs keep the total picture manageable. With rental growth, the numbers improve over time.

The key variable is location within the metro. Henderson, Summerlin, and southwest Las Vegas command premium rents and stronger appreciation, while outlying areas like Bunkerville or Moapa offer lower entry prices but thinner tenant pools. The dashboard breaks this down by suburb, showing exactly where the numbers work for each strategy. You can also review our market score methodology and data sources for more detail on how these estimates are calculated.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.