Market Analysis

Denver Rental Market

Rental investment market data and analysis · Updated September 2026

Median Home Price

$610,000

Average Monthly Rent

$1,881

Estimated Cap Rate

3.7%

Rent-to-Price Ratio

0.3%

Below 1% Rule

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$1,357/mo
Condo$1,919/mo
Multi-Family$2,283/mo
Single Family$2,505/mo
Townhouse$2,730/mo

Sample Investment Analysis

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

Purchase Price$610,000
Down Payment (20%)$122,000
Monthly P&I$3,181
Monthly Rent$1,881
Est. NOI$13,543/yr
Est. Cash Flow-$2,053/mo
Cash on Cash-18.4%

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 $6,100/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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