West Coast8.8% avg cap rate

Lake Tahoe, CA

Sierra Nevada jewel - premium dual-season mountain market

Lake Tahoe is one of the most high-value STR markets in the western US, offering world-class skiing at multiple resorts (Palisades Tahoe, Heavenly, Northstar) and a stunning alpine lake that drives summer demand equally as strong. North Shore and South Shore have distinct character - South Shore is higher volume and Vegas-adjacent; North Shore is quieter and luxury-oriented.

8.8%
Avg Cap Rate
Net operating income / price
63%
Avg Occupancy
Annual average
$625
Avg Nightly Rate
All property types
$980K
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
63% occ × $625/night
$143,719
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $57,488
Est. net operating income
Before mortgage & depreciation
$86,231
At $980K avg price
Implied cap rate
8.8%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Lake Tahoe

World-class skiing at 15+ resorts within 30 miles
Alpine lake creates genuine summer demand parity with ski season
Placer County and El Dorado County STR permit required
South Shore - higher volume; North Shore - higher ADR
Peak season: Dec - Mar (ski), July - Aug (lake)
Top property types: Cabin, Single Family, Condo, Lakefront Home
Primary zip: 96150, 96145, 96140, 96161

Lake Tahoe STR investing, answered

Is Lake Tahoe, CA a good short-term rental market?

Lake Tahoe is a West Coast STR market averaging a 8.8% cap rate, 63% annual occupancy, and $625/night across STR-viable listings. Lake Tahoe is one of the most high-value STR markets in the western US, offering world-class skiing at multiple resorts (Palisades Tahoe, Heavenly, Northstar) and a stunning alpine lake that drives summer demand equally as strong. North Shore and South Shore have distinct character - South Shore is higher volume and Vegas-adjacent; North Shore is quieter and luxury-oriented.

What is the average Airbnb occupancy rate in Lake Tahoe?

STR-viable properties in Lake Tahoe average about 63% occupancy across the year. Peak season is Dec - Mar (ski), July - Aug (lake). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Lake Tahoe?

At $625/night and 63% occupancy, a typical Lake Tahoe STR grosses roughly $143,719 per year before expenses, leaving an estimated $86,231 in net operating income against a $980K average price, an implied 8.8% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Lake Tahoe?

The strongest-performing STR property types in Lake Tahoe are Cabin, Single Family, Condo, Lakefront Home. World-class skiing at 15+ resorts within 30 miles. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Lake Tahoe?

STR-viable listings in Lake Tahoe average around $980K. Primary STR ZIP codes include 96150, 96145, 96140. Combined with the market's 8.8% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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