Cap Rate in Denver, CO

2026 Market Overview for Real Estate Investors

Avg Cap Rate

4.4%

#44 of 50 markets

Median Home Price

$525,000

Purchase price

Median Monthly Rent

$1,900

$22,800/yr gross

Rent-to-Price Ratio

0.36%

Below 1% rule

Cap Rate Rating

Moderate

Typical for stable markets with moderate growth potential. Balanced risk-return profile.

Market Snapshot

Population	713,252
5-Year Population Growth	+6.5%
Median Household Income	$72,000
Vacancy Rate	5.5%
Property Tax Rate	0.51%($2,678/yr)

Investor Takeaway

Denver offers strong tenant quality with high median incomes and low vacancy. New supply has moderated rent growth in 2025-2026, creating potential value for patient investors who can weather the cycle.

Quick Math

Estimated annual numbers for a median-priced property in Denver, CO before financing:

Annual Gross Rent$22,800

Less Vacancy (5.5%)($1,254)

Less Property Tax (0.51%)($2,678)

Less Est. Insurance + Maintenance($10,500)

Estimated NOI$8,369

Implied Cap Rate1.6%

Estimates based on median values. Insurance + maintenance estimated at 2% of home value. Actual results vary by property condition, neighborhood, and management.