What's a good cap rate in Denver?

In Denver, cap rates typically run around 5.2% (Denver metro median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Denver deal lands versus this benchmark.

What's the average rent for a rental in Denver?

A typical rental in Denver runs about $2,089–$2,734/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Colorado?

Colorado's effective property tax rate is about 0.55% of value per year — the figure TrueCap applies by default for Denver deals. You can override it with the exact local rate.

Denver, CO

Denver rental property analysis

Denver is a high-price, low-cap appreciation market — strong economy and in-migration, but negative leverage is a real risk at today's rates.

Denver market snapshot

Appreciation market

Compressed cap rates — the play here is long-term price growth over day-one cash flow.

Typical cap rate

5.2%

Denver metro median

Typical rent

$2,089–$2,734/mo

HUD FMR · 2–3BR · 2026

Typical price

$450,000–$600,000

est., all-in

Property tax

0.55%

Colorado effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Denver a good place to buy rentals?

Buy for long-term appreciation and rent growth, with reserves to carry thin early cash flow. Not a market for yield-first investors right now.

See the full Coloradoinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Denver

Aurora

More affordable, family renters, steadier ratios.

Montbello

Value-add, lower entry within the metro.

Lakewood

Stable suburb, low vacancy, reliable tenants.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Denver deal in 60 seconds

Paste a Denver address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Colorado tax and HUD rent so you start from the right assumptions.

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