Short answer: In Denver, CO, the median home value is $636,400 and the median 3-bedroom rents for $2,570/mo (Census ACS 2024). That's a rent-to-price ratio of 0.40%, so it misses the 1% rule and ranks #36 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$1,964/mo cash flow).
Key numbers
The 1% rule in Denver
Before running a full analysis, many investors check whether rent is at least 1% of price. This is where Denver lands.
Across all rentals (not just 3-bedrooms) the ratio is 0.29%. A home renting for the median 3-bedroom rent would need to cost about $257,000 or less to pass.
A typical Denver home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,570 |
| Property tax ($3,071/yr, local median) | −$256 |
| Insurance ($3,180/yr, assumed) | −$265 |
| Vacancy 6% · Maintenance 5% · Management 8% | −$488 |
| Net operating income | $1,561 |
| Mortgage (P&I on $509,120 at 7.40%) | −$3,525 |
| Monthly cash flow | −$1,964 |
What price works in Denver?
Price is the lever you control. Holding rent at the Denver median, these are the price ceilings for each FirstDoor result.
Takeaways
- Denver's 0.40% ratio is far below the 1% rule (#36 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $1,964/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $327,000, 49% below the median.
- Rents (+1.3%) and home values (+1.6%) moved roughly together from 2023 to 2024, so the ratio barely changed.
- Property taxes are light: the median bill is $3,071, about 0.48% of value versus 0.89% nationally.
Frequently asked questions
Does Denver pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,570/mo and the median home value is $636,400 (Census ACS 2024 1-year), a ratio of 0.40%. To pass at that rent, a home would need to cost about $257,000 or less.
What is the typical rent for a 3-bedroom in Denver?
The median gross rent for a 3-bedroom in Denver, CO is $2,570 a month, and $1,870 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 1.3% from 2023.
Can you cash flow a rental in Denver?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $636,400 home renting for $2,570 loses about $1,964/mo. It breaks even at roughly $327,000.
How much cash do you need to buy a typical rental in Denver?
About $146,380: a 20% down payment of $127,280 plus closing costs we assume at 3% ($19,100). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Denver a good place to buy a first rental?
FirstDoor scores a median-priced home in Denver as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
Keep learning
Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($3,180/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.