This is something that is very normal for RTSP.

 We generally see 500-2000 milliseconds of latency using the Media Source for RTSP feeds in OBS. Using the VLC source does get the latency slightly lower, but recently we have found the use of a GStreamer source to be the best latency for the RTSP feeds. This does take some additional setup. but it works great with minimal latency. 

My steps:

  1. Copy the obs-gstreamer.dll from (Windows)



  1. Unzip the  download, open it and copy the file to your OBS Plugins (64 bit) folder.
  1. Download and Install the following
  2. Search for "Edit the System Environment Variables"  to open System Properties.

  1. Click the "Environmental Variables" Window. 
  2. Find the listing that says "Path", and click Edit.

  1. Click "New" then enter the path as it appears on your machine to get to the GStreamer bin folder.

For example: C:\gstreamer\1.0\mingw_x86_64\bin\

  1. Open up OBS and go to add a source, you should see GStreamer as an option. For pulling in the camera feed, use this string: 

rtspsrc location="rtsp://admin:admin@" latency=0 buffer-mode=auto ! rtph264depay ! h264parse ! d3d11h264dec ! video.

In this example admin:admin is the default username and password of the camera.

( is my camera setup on my network here on site, you would use your own cameras IP address.)