Breckenridge, CO Cap Rate: 2.72% — Rental Property Analysis
Breckenridge is a premium-priced metro in the West with a small but investable metro of 50,000. At a 2.72% estimated cap rate, this is a appreciation-focused market where rents of $3,440/mo lag behind home prices. With a median home price of $975,000 and steady population growth supports long-term rental demand, Breckenridge is primarily an appreciation play that requires creative strategies to generate positive cash flow.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Challenging for pure cash flow
Based on $975,000 median price and $3,440/mo median rent
Est. Cap Rate
2.72%
1% Rule
0.35%
Fails
GRM
23.6x
Price / Income
15.1x
Market Data
Median Home Price$975,000
Median Monthly Rent$3,440
Property Tax Rate0.51%
Population50,000
Population Growth1.3% / yr
Median Household Income$64,457
Vacancy Rate4.9%
Annual Appreciation2.5%
2026 Market Update: Breckenridge
Breckenridge's 0.4% rent-to-price ratio is well below the 1% rule. At median prices of $975,000, the $3,440/mo rent produces only $2,207/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($195K at 7%) would result in approximately $-2,980/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
The 23.6x gross rent multiplier and 4.9% vacancy rate position Breckenridge as a growth-dependent market. With annual appreciation at 2.5%, total returns (cash flow + equity growth) run approximately 5.2% before financing leverage.
Cap Rate Calculator — Breckenridge
Pre-filled with Breckenridge medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
0.51% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.36%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$22,961
net operating income
Gross Rent Multiplier
23.6x
High (>15)
1% Rule
0.35%
✗ Fails
Monthly Cash Flow
$1,913
before debt service
Annual Breakdown
Gross Rental Income$41,280
Less Vacancy−$2,023
Effective Income$39,257
Less Operating Expenses−$16,296
Net Operating Income$22,961
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Factor in financing to see your actual return on invested capital in Breckenridge.
$
$243,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-12.19%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$273,000
$243,750 down + $29,250 closing
Monthly Mortgage
$4,767
on $731K loan
Monthly Cash Flow
$-2,772
after all expenses
Annual Cash Flow
$-33,266
before taxes
Cash Flow Breakdown
Monthly Rent$3,440
Less Expenses−$1,445
Less Mortgage−$4,767
Monthly Cash Flow$-2,772
Is Breckenridge a Good Place to Invest in Rental Property?
Breckenridge, CO has a population of 50,000 and has been growing at 1.3% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $975,000 paired with median rents of $3,440/mo produces an estimated cap rate of 2.72%.
Property taxes at 0.51% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.9% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 15.1x, homes cost about 15.1 times the local median income of $64,457. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Breckenridge is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.
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