Is Reno a Good City to Invest in a Short-Term Rental?

By Carson Long, Reno Realtor with Compass

If you’ve been thinking about buying a property in Northern Nevada and turning it into a short-term rental, you’re not alone. Reno has become one of the region’s most talked-about real estate markets — and for good reason. With its year-round outdoor lifestyle, growing tech presence, and proximity to Lake Tahoe, investors are asking one big question:

Is Reno actually a good city to invest in a short-term rental?

After looking at the numbers, the regulations, and the real-world market dynamics, my answer is:
Yes — but only if you approach it strategically.

Below, I’ll break down the data, risks, and what to know before you invest in a Reno STR.

WHY RENO CAN BE A SMART STR MARKET

1. Strong visitor demand
Reno isn’t just “The Biggest Little City in the World” — it’s a regional tourism hub. The area draws travelers for events, conventions, sports tournaments, ski trips, and outdoor recreation all year long. Between the airport’s easy access and proximity to Lake Tahoe, visitor traffic keeps short-term rental demand strong across all seasons.

2. Solid occupancy and nightly rates
According to STR market data, Reno’s occupancy typically ranges from 60% to 65%, with average nightly rates between $150 and $210. That level of performance provides a healthy base for cash flow when properties are managed efficiently.

3. Year-round appeal
Unlike purely seasonal mountain towns, Reno’s mix of business travel, university events, and convention tourism helps smooth out occupancy between major travel seasons.

THE CHALLENGES: WHAT MAKES RENO RISKY FOR STR INVESTORS

1. Regulations are tightening
Washoe County and the City of Reno have steadily introduced new rules for STRs — from permits and fees to inspection requirements. These can affect whether a property qualifies, what it costs to operate, and even how many STRs are allowed per area. Always check with both city and county officials before you buy.

2. Seasonality and competition
Reno performs well in summer and around holidays, but occupancy dips in shoulder months. Strong listings with great amenities, professional photos, and strategic pricing still win — but you can’t assume year-round 80% occupancy like you might see in beach markets. You also have to factor in consumer options, including the numerous casino’s in town that incentivise people to stay at the hotels at a cheaper rate in hopes they spend more money inside the casino.

3. Rising home prices
Reno’s real estate market remains competitive, with median prices hovering in the mid-$500,000s. That means cap rates are tighter than in lower-priced STR markets. You’ll need to buy strategically to make the numbers work.

BEST AREAS FOR AN STR INVESTMENT IN RENO

When I advise clients on STR investment opportunities, I focus on micro-locations with proven demand and flexible regulations:

• Downtown Reno & Riverwalk District — walkable to events, nightlife, and the Truckee River.

• Midtown — great for boutique stays and long weekend guests.

• Near the airport or convention center — consistent bookings for business travelers and sports tournaments.

Always verify whether STRs are permitted in your chosen neighborhood (HOA’s can vote to exclude STR’s).

EXAMPLE FINANCIAL SNAPSHOT (REALISTIC ESTIMATE)

Let’s run simple, realistic numbers for a mid-range property:

• Average nightly rate: $175

• Occupancy: 60%

• Gross annual revenue: ≈ $38,000

• Estimated expenses: 40% (cleaning, management, utilities, taxes, maintenance)

• Net income: ≈ $22,800 per year

If you purchase wisely and keep operations efficient, those figures can provide a healthy return — especially if you self-manage or use dynamic pricing tools to boost occupancy.

RENO STR INVESTMENT CHECKLIST

Before you buy an STR in Reno, take these five steps:

1. Check zoning and permitting – Confirm with both the City of Reno and Washoe County that STRs are allowed for your property.

2. Pull local STR data – Use platforms like AirDNA or Airbtics to compare occupancy and ADR for your neighborhood.

3. Run conservative cash flow – Assume 40–55% occupancy and account for 40–50% expenses.

4. Get property management quotes – Local STR managers can give you insight on cleaning costs, regulations, and guest trends.

5. Plan for change – Build a cushion in case new rules or fees are added in the next few years.

MY VERDICT AS A LOCAL EXPERT

If you’re disciplined and do your homework, Reno can absolutely be a good city to invest in a short-term rental.
The key is location, compliance, and conservative financial modeling.

Reno’s mix of consistent visitor demand, mountain access, and growing reputation make it an attractive market — but regulations and acquisition costs mean you can’t just “buy anything and cash flow.”

When done right, the returns are competitive and the appreciation potential is strong.

THINKING ABOUT BUYING A SHORT TERM RENTAL INVESTMENT PROPERTY IN RENO?

If you’re considering an STR or vacation rental in Reno, I can help you find the right neighborhood, analyze returns, and guide you through the permitting and setup process.

Contact Carson Long — Reno Realtor with Compass
Specializing in Reno, South Reno, and Incline Village real estate.
Let’s make your investment work smarter — not riskier.

Call/Text: (775)298-1270
Email: [email protected]
Website: RenoLuxLiving.com