Las Vegas multifamily lending

Short answer: Las Vegas multifamily now tracks logistics and tech in-migration more than gaming, with stabilized 5–20 unit cap rates of 5.5–6.5% and rent growth around +1.5% YoY. At a 6.0 cap an 8-unit sits right at the 1.25 DSCR floor, so tighter-priced deals are typically DSCR-binding.

Las Vegas right now

Las Vegas multifamily has decoupled from gaming and now tracks more closely to logistics and tech in-migration. Stabilized 5–20 unit cap rates run 5.5–6.5%, with rent growth at +1.5% YoY. The metro is dominated by 1990s–2000s garden product, which prices materially tighter than 1970s walk-ups.

Is Las Vegas a DSCR-binding market?

At a 6.0 cap, an 8-unit Vegas deal is right at the 1.25 DSCR floor at today's rates. Most deals priced inside a 5.75 cap are DSCR-binding and require either a rate buy-down or sub-75% LTV.

Submarket guide

• Summerlin / Spring Valley — 5.5–6.0%, premium.
• Henderson — 5.75–6.25%, family workforce housing.
• Eastside / Sunrise Manor — 6.25–6.75%, value-add common.
• North Las Vegas — 6.0–6.5%, logistics-job tailwind.

Nevada specifics

No state income tax. Property tax cap on existing owners means year-2 reassessment is less punishing than TX / FL — the cap-rate-on-sale increment is real but usually <15% of the seller's bill. Insurance is up ~7% YoY (low desert exposure).

PathIQ models the Nevada cap-on-tax rule so year-2 NOI matches what your appraiser will use.

Frequently asked questions

What cap rate should I expect on Las Vegas small multifamily?

Stabilized 5–20 unit product in Las Vegas trades at 5.5–6.5%. The metro is dominated by 1990s–2000s garden product, which prices materially tighter than 1970s walk-ups, so condition and vintage drive most of the spread.

Is a Las Vegas deal likely to be DSCR-constrained?

Often, yes. At a 6.0 cap an 8-unit sits right at the 1.25 DSCR floor at today's rates, and anything priced inside a 5.75 cap is typically DSCR-binding — requiring a rate buy-down or sub-75% LTV to clear.

How does Nevada property tax affect year-2 underwriting?

Nevada's property-tax cap on existing owners makes year-2 reassessment less punishing than in Texas or Florida. The cap-rate-on-sale increment is real but usually under 15% of the seller's bill, so year-2 NOI holds up better after purchase.

What's driving Las Vegas rent demand now?

Rent growth runs about +1.5% YoY, driven by logistics and tech in-migration rather than gaming. The metro has largely decoupled from casino employment, giving demand a more diversified base than it had a decade ago.