Henderson, NV Cap Rate 3.24%
Henderson is the second-largest city in Nevada and the premier suburban anchor of the Las Vegas metro — anchored by master-planned communities (Green Valley, Anthem, MacDonald Ranch), the broader Las Vegas metro spillover, and Nevada's no-state-income-tax structure. The 3.24% cap rate at a $430,000 median price reflects sustained post-2020 in-migration. The 0.40% rent-to-price ratio sits below the 1% rule. Population growth at 2.5%/yr is among the strongest in the country.
Employment is anchored by the broader Las Vegas metro economy (Henderson residents commute to Las Vegas Strip casino-and-hospitality employment, plus the broader Clark County professional and government employment base; Henderson itself has continued to attract corporate operations seeking Nevada's tax structure — Levi Strauss, Allegiant Air, plus the broader business-services cluster), the broader Henderson Hospital and St. Rose Dominican Hospitals network, the broader healthcare ecosystem, Henderson's own city government (one of the larger Nevada municipal employers), the broader retail-and-services base supporting one of the more affluent Las Vegas-area suburbs, and a meaningful retiree-and-resort overlay (Henderson's master-planned communities have historically been retiree-attractive). Submarkets stratify cleanly: Green Valley and Green Valley Ranch are premium master-planned areas with strong appreciation; the broader Anthem (south Henderson) and MacDonald Ranch zones are premium suburban-school zones drawing professional family rentals; Lake Las Vegas east is a separate luxury submarket; the broader Henderson extends with newer construction.
Nevada has no state income tax (a structural cash-flow advantage). Property tax at 0.53% is moderate and Nevada caps annual residential tax growth at 3% — meaningful for long-hold appreciation plays. Insurance is reasonable. The structural advantages: NV no-income-tax + 3% tax-cap structure is genuinely landlord-favorable for long holds; sustained Las Vegas metro in-migration; master-planned community structure provides predictable HOA-managed environments that draw and retain quality tenants; cost basis is materially below coastal CA migration-source markets. The structural risks: heavy economic concentration in Las Vegas tourism / discretionary spending cycles; water access is a long-term variable for the entire Las Vegas metro (Lake Mead drought concerns affect Henderson as much as Vegas); summer heat extremes. For investors who want NV tax structure with premium suburban-and-master-planned community pricing, Henderson is the most defensible Las Vegas-metro option.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Henderson
Henderson's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $430,000, the $1,720/mo rent produces only $1,161/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($86K at 7%) would result in approximately $-1,127/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 20.8x gross rent multiplier and 4.8% vacancy rate position Henderson as a growth-dependent market. With annual appreciation at 3.2%, total returns (cash flow + equity growth) run approximately 6.4% before financing leverage.
Deal Modeling & Scenarios for Henderson
All figures below are computed from Henderson's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 0.53% effective rate on the $430,000 median price, the annual tax bill is $2,279 — that's very low (bottom 15% of US markets) (-50% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Henderson continues appreciating at 3.2%/yr while rents grow at a conservative 3%/yr, cap rate compresses as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $430K | $1,720 | 3.2% |
| Year 1 | $444K | $1,772 | 3.2% |
| Year 2 | $458K | $1,825 | 3.2% |
| Year 3 | $473K | $1,879 | 3.2% |
| Year 4 | $488K | $1,936 | 3.2% |
| Year 5 | $503K | $1,994 | 3.2% |
Three Financing Scenarios
Same median-priced Henderson property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $430K | $1,161 | $13,930 | 3.2% |
| 20% down conventional @ 7% | $99K | $-1,127 | $-13,521 | -13.7% |
| 25% down DSCR @ 8.5% | $125K | $-1,319 | $-15,830 | -12.7% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $323K | $1,462 | $10,896 | 3.4% | $908 |
| At median | $430K | $1,720 | $12,348 | 2.9% | $1,029 |
| Above median (~125% price) | $538K | $1,978 | $13,800 | 2.6% | $1,150 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Henderson's historical appreciation rate of 3.2%:
On a $86K down payment, that's a 36.7% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Henderson
Automated checks against the underlying data — surface only the risks that actually apply to Henderson, not generic boilerplate:
Cap Rate Calculator — Henderson
Pre-filled with Henderson medians. Adjust to match a specific property.
Cash-on-Cash Return — Henderson
Factor in financing to see your actual return on invested capital in Henderson.
Is Henderson a Good Place to Invest in Rental Property?
Henderson, NV has a population of 330,100 and has been growing at 2.5% annually — well above the national average, signaling strong housing demand from population inflows. The median home price of $430,000 paired with median rents of $1,720/mo produces an estimated cap rate of 3.24%.
Property taxes at 0.53% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 5.9x, homes cost about 5.9 times the local median income of $72,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Henderson is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.