The average rent in Reno is $1,803 per month as of July 2026 (Zumper), up 5.72% from $1,705 the previous year. This was the first figure I highlighted to clients looking to supplement their living expenses with rental income as they approach retirement. This number indicates that the Reno rental market is still on an upward trend, but it also means that purchase prices are rising as well.

A one-bedroom unit averages $1,349, while a two-bedroom goes for around $1,550. This is about 8% lower than the national average, which can work in your favor when calculating rental yields against purchase prices. Applying the 1% rule, it's a good starting point to see if you can charge more than 1% of the purchase price in monthly rent.

To utilize rental income as a source of income after retirement, you need to understand the loan structure. Investment property loans require a down payment of 15% to 25%, which is higher than for primary residences, and a credit score of at least 620 is needed to qualify, with better rates available for scores above 740 (fanniemae.com). Interest rates are also 0.5 to 0.75 percentage points higher than for primary residences. Expected rental income is only counted as 75% of your income, so when your fixed income decreases after retirement, you should recalculate your loan limits considering this ratio (freddiemac.com).

The property tax rate in Washoe County, where Reno is located, is $3.66 per $100 of assessed value, which is the maximum set by state law. The effective tax rate is 1.18%, which is higher than the Nevada state median of 0.84% (Ownwell). Depending on the zip code, the 89510 area has a rate of 1.31%, while the 89508 area is at 0.92%, showing a disparity. Nevada caps the annual increase in assessed value for owner-occupied homes at 3%, but investment properties can rise by up to 8%, so this difference should be factored into your retirement budget planning.

Nevada has no rent control, and state law prohibits local governments from enacting rent control measures. For month-to-month rentals, landlords can raise rents to market levels with 60 days' notice. However, retaliatory or discriminatory increases are prohibited. If you are moving to Reno from a state with rent control after retirement, this difference can significantly impact your rental income calculations. However, the procedures for evicting tenants or notification requirements can vary by county, so it's wise to check these details before signing a lease.

Management fees typically range from 8% to 12% of the monthly rent, and landlord insurance is generally more expensive than standard homeowners insurance. It's common to set aside about 1% of the annual property value for maintenance costs. If you want to reduce management burdens after retirement, it's advisable to calculate the cap rate along with management fees to gauge your actual yield.

To illustrate further, if you have a property purchased for $400,000 and rent it for $1,550 for a two-bedroom unit, the annualized rent would be $18,600, which is 4.65% of the purchase price. After deducting property taxes, insurance, management fees, and maintenance reserves, the net operating income cap rate will be lower than this figure, so it's important to calculate that first. If your retirement plan heavily relies on rental income, it's also wise to set aside reserves for months when vacancies may occur. Planning for retirement based solely on total rental income without these calculations can lead to discrepancies in actual income received.

If you plan to liquidate real estate and transfer to other assets around your retirement date, you can defer capital gains tax through a 1031 exchange (irs.gov). Rather than being overly optimistic based solely on rental price increases, consider the property tax cap structure and loan conditions as well. This is not investment or legal advice, and it is recommended to consult with professionals before finalizing any contracts.