Based on analysis of all 89 active single family home listings (10/24/2023) in the Fernley submarket, we have found that cap rates are settling around 4.5% to 5%. This is due to a combination of factors, including:

Stable rental market (TESLA): The Fernley rental market is very stable, with low vacancy rates and strong demand from renters, largley from Tesla factory workers. This makes rental properties in the area a good investment.

Rising interest rates: Interest rates are rising, which is making it more expensive to borrow money to buy investment properties.

If you are an investor considering purchasing a single family investment in the Fernley market, it is important to keep in mind that cap rates are settling around 4.5% to 5%. This means that you should expect to earn a return of 4.5% to 5% on your investment, after accounting for expenses.