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Cap Rate Analysis: Henderson, NV

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

Challenging for pure cash flow
Based on $430,000 median price and $1,720/mo median rent
Est. Cap Rate
3.24%
1% Rule
0.40%
Fails
GRM
20.8x
Price / Income
5.9x

Market Data

Median Home Price$430,000
Median Monthly Rent$1,720
Property Tax Rate0.53%
Population330,100
Population Growth2.5% / yr
Median Household Income$72,400
Vacancy Rate4.8%
Annual Appreciation3.2%

Cap Rate Calculator — Henderson

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.53% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.78%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,933
net operating income
Gross Rent Multiplier
20.8x
High (>15)
1% Rule
0.40%
✗ Fails
Monthly Cash Flow
$994
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$991
Effective Income$19,649
Less Operating Expenses−$7,716
Net Operating Income$11,933

Cash-on-Cash Return — Henderson

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

$
$107,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.01%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$120,400
$107,500 down + $12,900 closing
Monthly Mortgage
$2,102
on $323K loan
Monthly Cash Flow
$-1,104
after all expenses
Annual Cash Flow
$-13,254
before taxes
Cash Flow Breakdown
Monthly Rent$1,720
Less Expenses−$722
Less Mortgage−$2,102
Monthly Cash Flow$-1,104

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.

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