How these markets compare for investors
Chicago is significantly more affordable than Denver, with median prices 86% lower ($290,000 vs. $540,000). That lower entry point means less capital tied up per unit, making it easier to scale a portfolio or get started as a first-time investor.
On yield, Chicago stands out clearly at 6.6% vs. 4.2% in Denver. For cash flow focused investors, that difference is material — it translates to measurably higher monthly income on a comparable investment.
Worth noting: Chicago has negative population growth at -0.5% per year, which points to a shrinking renter pool. Denver at 0.7% growth provides a more stable demand base.
Vacancy rates differ between the markets: Denver has a tighter market at 4.8% versus Chicago at 7.8%. Lower vacancy generally means fewer void periods and can signal stronger structural demand — important for investors who need consistent rental income.
Market profiles
Median home price
$540,000
Median monthly rent
$1,900/mo
Gross rental yield
4.2%
Denver offers stable rental demand without extremes — a solid market for conservative, long-term buy-and-hold investors.
Median home price
$290,000
Median monthly rent
$1,600/mo
Gross rental yield
6.6%
Chicago stands out for its rental yield. Ideal for investors prioritising ongoing cash flow over capital growth.
Property prices by size
Denver
Chicago✓
Denver
Chicago✓
Denver
Chicago✓
Estimated values based on median price per m² and median rent per m². Individual properties will vary.
Price and rent trends (5 years)
Price growth is similar across both cities (+10.2% in Denver, +13.7% in Chicago over 5 years). Rent growth trends may be a better forward indicator for yield trajectory.
What does your capital actually generate?
Investment budget: $300,000
The same capital generates approximately 58% more annual rental income in Chicago — a meaningful difference for cash flow focused investors.
Which investor type benefits most?
First-time & risk-averse
Recommended: Chicago
Chicago has a lower entry price ($290,000 vs. $540,000) — less capital at risk and a lower barrier to get started.
Cash flow investor
Recommended: Chicago
Chicago offers a higher gross yield (6.6% vs. 4.2%) — directly translating to more monthly income for the same investment.
Appreciation investor
Recommended: Denver
Denver is growing faster at 0.7%/yr vs. -0.5% in Chicago. Strong population growth is the most reliable driver of long-term price appreciation.
Portfolio builder
Recommended: Chicago
With $1,500,000, you could acquire ~5 properties in Chicago vs. ~2 in Denver. Your capital stretches further in Chicago.
Calculate your return in each city
Adjust the numbers to match your specific properties.
ADenver
Inputs
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross yield
4.22%
Net yield
2.58%
Cap rate
2.58%
Monthly cash flow
$1,158.80
Annual cash flow
$13,905.60
BChicago
Inputs
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross yield
6.62%
Net yield
4.28%
Cap rate
4.28%
Monthly cash flow
$1,033.53
Annual cash flow
$12,402.40
Common questions: Denver vs Chicago
Is Denver or Chicago better for property investment?
Chicago offers a higher gross yield (6.6% vs. 4.2% in Denver), making it more attractive for cash flow focused investors. For appreciation-focused strategies, population growth and price trends matter more than headline yield.
Which has higher rental yields — Denver or Chicago?
Chicago has a higher gross rental yield at 6.6% versus 4.2% in Denver. Note that net yield will vary depending on operating expenses, vacancy periods, and applicable taxes in each market.
Should I invest in Denver or Chicago as a beginner?
For beginners, Chicago tends to be more accessible with a median price of $290,000 compared to $540,000 in Denver. A lower entry price reduces initial capital requirements and limits downside risk while you learn the market.
What are the main risks of investing in Denver versus Chicago?
Both markets carry specific risks. In Chicago, investors should pay particular attention to population decline and its impact on rental demand. In general, diversification, local due diligence, and maintaining a financial buffer for void periods and repairs are essential in any market.
Data sources: All data sourced from official statistics bureaus and is provided for informational purposes only. Nothing on this page constitutes investment advice. Always consult a qualified professional before making investment decisions. Zillow Research / Zillow Research / U.S. Census Bureau