Rental property in Denver, CO
2026 Market Data & Investment Analysis
Gross Yield
4.2%
Annual rent / price
Median Home Price
$540,000
As of 2026-Q1
Median Monthly Rent
$1,900
Per month
Population
715,522
+0.7% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Zillow Research, 2026-Q1.
Calculate your rental yield in Denver
Pre-filled with Denver's median values. Adjust to match your specific property.
Property Details
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 Rental Yield
4.22%
Net Rental Yield
2.57%
Cap Rate
2.57%
Monthly Cash Flow
$1,155.00
Annual Cash Flow
$13,860.00
Denver rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Denver's rental market presents a moderately attractive investment opportunity with a 4.2% gross rental yield, though this figure warrants careful contextualization within the city's current economic landscape. The median home price of $540,000 paired with $1,900 monthly rent reflects a market that has cooled significantly from pandemic-era peaks when Denver experienced explosive appreciation. The relatively modest 0.7% 5-year annual population growth—substantially below the national average and a dramatic deceleration from pre-2020 trends—suggests the speculative demand that once drove Denver's market has matured into a more stabilized, fundamentals-based pricing environment.
Demand drivers remain solid but face headwinds from slowing in-migration. Denver's economy is anchored by diversified sectors including energy (particularly natural gas and renewables companies like Suncor and Oxy), aerospace and defense, and a growing technology sector centered around the RiNo District and surrounding neighborhoods. Major employers like Google (with expanding Boulder/Metro operations), Amazon Web Services, and ball Corporation provide employment stability, while the University of Colorado Denver and Metropolitan State University generate consistent demand for rental housing. However, the 4.8% vacancy rate indicates a market transitioning from undersupply to normalization—suggesting landlords can no longer rely on demand-driven appreciation and must focus on operational efficiency and tenant retention.
The forward outlook hinges on whether Denver can reignite its population growth narrative and continue diversifying beyond energy sector volatility. Positive factors include ongoing infrastructure investments (Denver International Airport expansion, RTD rail enhancements) and Colorado's favorable business tax environment. However, the combination of slowing migration, normalized vacancy rates, and a 4.2% yield that barely outpaces historical inflation suggests Denver has shifted from a capital appreciation play to a steady-income market. Investors should expect modest rent growth aligned with local wage increases rather than outsized returns, making this a 'hold and collect' market rather than a 'buy and flip' opportunity.
What type of investment market is Denver?
Denver presents challenges with both modest rental yields and limited population growth. Investors need to carefully analyze specific neighborhoods and property types to find opportunities that outperform the market average.
✓ Strengths
- •Diversified economic base with strong sectors in aerospace/defense, technology, and energy that provide employment stability and reduce recession risk compared to single-industry markets
- •Located along the I-25 corridor with major infrastructure investments including DIA expansion and RTD improvements, enhancing long-term accessibility and regional economic positioning
- •Well-educated population with significant university presence (CU Denver, MSU Denver) supporting both rental demand and wage growth in white-collar sectors
- •Normalized 4.8% vacancy rate indicates healthy market equilibrium with reasonable demand-supply balance, eliminating the over-leverage risk seen in tighter markets
! Risks
- •Severely decelerated population growth at 0.7% annually suggests the in-migration tailwind that fueled Denver's recent appreciation has exhausted, limiting future capital appreciation potential
- •Heavy historical exposure to energy sector creates cyclical vulnerability; natural gas price volatility directly impacts regional employment in oil and gas services and could constrain wage growth
- •Median home price of $540,000 relative to $1,900 rent yields a price-to-rent ratio of 284:1, indicating limited margin of safety if market correction accelerates or rents stagnate
- •Slowing population growth may pressure the university-dependent rental sectors (South Denver, Cap Hill neighborhoods) where student housing has historically driven cash flow in specific micro-markets
Key Metrics
How does Denver compare to nearby cities?
Denver vs Phoenix: 1.2 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Phoenix, AZ | $380,000 | $1,700 | 5.4% | +1.9% |
| Pittsburgh, PA | $180,000 | $1,200 | 8% | -0.3% |
| Nashville, TN | $420,000 | $1,750 | 5% | +1.3% |
| Charlotte, NC | $370,000 | $1,700 | 5.5% | +1.4% |
| Atlanta, GA | $350,000 | $1,750 | 6% | +1.6% |
Investor Takeaway
Denver is best suited for buy-and-hold income investors seeking stable 4%+ yields in a normalized market rather than growth-focused investors seeking appreciation upside; the slowing population growth and transition from seller's to balanced market conditions signal that Denver's explosive growth phase has concluded. The optimal strategy involves focusing on Class B/C multi-family properties or single-family rentals in employment-dense corridors (LoDo, RiNo, Cherry Creek adjacent areas) where professional workers can sustain rental demand, while avoiding speculative positioning in student housing markets that depend on continued population growth. Critically, investors must monitor whether the 0.7% annual growth rate stabilizes or continues declining—if Denver's migration reverses into net out-migration (as seen in some pandemic-peak boomtowns), the normalized 4.8% vacancy could quickly expand to 7-8%, severely compressing both rents and property values.
Common questions about investing in Denver
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How does Denver compare to Phoenix for investors?▾
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