Market Analysis

Denver, Colorado

Rental investment market data and analysis · Updated June 2026

Median Home Price

$634,500

Average Monthly Rent

$1,844

Estimated Cap Rate

3.5%

Rent-to-Price Ratio

0.3%

Below 1% Rule

Market Trends

Denver metro area — % change since 2018

Home Prices

+54.9%

Rent Index

+29.8%

-2%10%22%33%45%57%20182020202220242026

Average Rent by Bedroom

BedroomsAvg Rent
Apartment$1,389/mo
Condo$1,881/mo
Single Family$2,614/mo
Multi-Family$2,707/mo
Townhouse$3,248/mo

Sample Investment Analysis

Based on median price + average rent, 20% down, 6.8% rate, 30yr

Purchase Price$634,500
Down Payment (20%)$126,900
Monthly P&I$3,309
Monthly Rent$1,844
Est. NOI$13,277/yr
Est. Cash Flow-$2,203/mo
Cash on Cash-18.9%

The Denver market is cash-flow negative at median prices. Look for properties 15-20% below median or with value-add potential.

What Investors Should Know About Denver

  • 1Compressed cap rates below 5% — focus on appreciation or value-add deals
  • 21% Rule fails at median prices — need rent of $6,345/mo to pass
  • 3Below-average rents keep entry costs low for new investors
  • 4Premium market — higher capital requirements but potential for appreciation

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