Cap rates in Denver vary significantly by property type and neighborhood. Based on current DMAR pricing data and market rents, typical cap rates in mid-2026:

  • Single-family rentals in Denver proper: 3.5%-5% — lower cap rates but stronger appreciation history and more liquid exit
  • Condos in Capitol Hill and Uptown: 4%-5.5% — entry prices are lower but HOA fees compress NOI significantly
  • Small multi-family (duplex/triplex) in working-class neighborhoods: 5%-6.5% — the best pure cash-flow play in the Denver market
  • Suburbs (Aurora, Thornton, Commerce City): 5%-6% — lower entry prices, stronger cash flow, slower appreciation than urban core

These are gross cap rates on current asking prices. Net cap rates after vacancy (plan for 5%), maintenance (budget 1% of home value annually), and property management (8-10% of gross rents) will be 0.5-1.5% lower. Denver is generally an appreciation market, not a cash-flow market — investors who’ve done best here prioritized location and held long.