Market Analysis
Denver Rental Market
Rental investment market data and analysis · Updated October 2026
Median Home Price
$630,000
Average Monthly Rent
$1,971
Estimated Cap Rate
3.8%
Rent-to-Price Ratio
0.3%
Below 1% Rule
Rent ÷ price by zip code
0 of 4 clear the 1% rule · October 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 80239 | $424,900 | $2,595 | 0.61% |
| 80202 | $565,000 | $2,100 | 0.37% |
| 80220 | $695,000 | $1,499 | 0.22% |
| 80210 | $850,000 | $1,690 | 0.20% |
Rent ÷ price over time
PacRent rent-to-price index · Denver
Context · FRED home price index
Market Trends
Denver metro area — % change since 2018
Home Prices
+53.7%
Rent Index
+29.8%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,347/mo |
| Condo | $1,760/mo |
| Multi-Family | $2,012/mo |
| Townhouse | $2,498/mo |
| Single Family | $2,720/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$630,000
Down Payment (20%)$126,000
Monthly P&I$3,286
Monthly Rent$1,971
Est. NOI$14,191/yr
Est. Cash Flow-$2,103/mo
Cash on Cash-18.2%
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 $6,300/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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