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%
Average Rent by Bedroom
| Bedrooms | Avg 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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