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

ZipMedian priceMedian rentRent ÷ price
80239$424,900$2,5950.61%
80202$565,000$2,1000.37%
80220$695,000$1,4990.22%
80210$850,000$1,6900.20%

Rent ÷ price over time

PacRent rent-to-price index · Denver

0.28%0.69%1.10%1% RULEOctOctOct
Latest reading 0.31% · 3 monthly readings

Context · FRED home price index

Market Trends

Denver metro area — % change since 2018

Home Prices

+53.7%

Rent Index

+29.8%

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

Average Rent by Bedroom

BedroomsAvg 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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