%
CapRateCity
Free cap rate calculators for every US market
← All markets

Cap Rate Analysis: Sparks, NV

Investment metrics, interactive calculators, and data-driven analysis for Sparks rental properties.

Challenging for pure cash flow
Based on $420,000 median price and $1,620/mo median rent
Est. Cap Rate
3.03%
1% Rule
0.39%
Fails
GRM
21.6x
Price / Income
6.7x

Market Data

Median Home Price$420,000
Median Monthly Rent$1,620
Property Tax Rate0.58%
Population112,000
Population Growth1.5% / yr
Median Household Income$62,400
Vacancy Rate4.8%
Annual Appreciation2.8%

Cap Rate Calculator — Sparks

Pre-filled with Sparks medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.58% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.59%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$10,887
net operating income
Gross Rent Multiplier
21.6x
High (>15)
1% Rule
0.39%
✗ Fails
Monthly Cash Flow
$907
before debt service
Annual Breakdown
Gross Rental Income$19,440
Less Vacancy−$933
Effective Income$18,507
Less Operating Expenses−$7,620
Net Operating Income$10,887

Cash-on-Cash Return — Sparks

Factor in financing to see your actual return on invested capital in Sparks.

$
$105,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.36%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$117,600
$105,000 down + $12,600 closing
Monthly Mortgage
$2,054
on $315K loan
Monthly Cash Flow
$-1,114
after all expenses
Annual Cash Flow
$-13,363
before taxes
Cash Flow Breakdown
Monthly Rent$1,620
Less Expenses−$680
Less Mortgage−$2,054
Monthly Cash Flow$-1,114

Is Sparks a Good Place to Invest in Rental Property?

Sparks, NV has a population of 112,000 and has been growing at 1.5% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $420,000 paired with median rents of $1,620/mo produces an estimated cap rate of 3.03%.

Property taxes at 0.58% 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 6.7x, homes cost about 6.7 times the local median income of $62,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.8% 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, Sparks 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.

Run a BRRRR analysis for Sparks
Model a buy-rehab-refinance deal with Sparks data pre-loaded.
Open BRRRR Calculator →