Long-Term Rentals · Market playbook

Buying Rental Properties in Denver, CO

Buying rentals in Denver is a 4.09% gross yield play at a $542k median entry — $1,846/mo rent gross before expenses. The math has to clear before the property does.

DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026

Tough 46/100

Denver fights the math for straight rentals — pivot to BRRRR (recycle capital) or flip-and-sell if the numbers don't pencil.

TL;DR — data signals

→ Gross yield 4.09% — at national baseline
→ Rent $1,846/mo vs. national $1,930 — rent-normal
→ Cash flow expectation at 25% down / 7.5%: flat to slightly negative
→ Appreciation: softening, cash flow must carry the deal

Long-term rentals in Denver sit at the intersection of two numbers: typical home value $541,899 and median rent $1,846/mo. That's a 4.09% gross yield — at the national baseline. Cash flow is workable but disciplined underwriting is non-negotiable.

Run the cash-flow math. Assume 20-25% down on a 30-year conventional rental loan at 7.5%, plus taxes + insurance + 8% property management + 8% vacancy/maintenance reserve + 8% capex reserve. At those inputs Denver rentals will likely cash flow flat-to-slightly-negative on standard 25% down financing. The math requires either more cash down (35-50%) or an explicit appreciation thesis.

Rent demand context: Denver rents ($1,846) are within 10% of the national median. Neither a rent tailwind nor headwind; the deal lives or dies on acquisition.

Appreciation thesis: Denver home values are -4.2% YoY. That's a softening market. Cash flow has to do all the work; don't underwrite expecting price growth to bail out a marginal deal.

Net: Denver is a workable rental market with tight margins — disciplined underwriting and operational excellence are the difference between profit and break-even.

Ad slot: strategy_mid

Denver at a glance