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MarketsColoradoCaRental Property Investment Guide

Rental Property Investment Guide: Ca, CO

Updated 2026 · Based on median market data for Ca, CO

Cap Rate
3.22%
Median Price
$335K
Rent/Mo
$1,330
1% Rule
0.40%
Fails

Market Snapshot

Ca sits in the West with a population of 50,000 growing rapidly at 1.3% annually. The median home costs $335,000 while rents average $1,330/mo, producing an estimated cap rate of 3.22%. Cash flow investing here requires creative strategies like BRRRR or value-add approaches.

Who Should Invest Here

Ca works best for experienced investors with a clear strategy — Section 8, student housing, or deep value-add rehabs. The 3.22% cap rate at median prices is tight, so success depends on buying below market, forcing appreciation through renovation, or accessing above-market rent streams through niche tenant bases.

Deal Criteria for Ca

Target properties priced 15-25% below the $335,000 median — around $268,000 or less. At this price point with $1,330/mo rents, your cap rate improves to roughly 4.4%. Factor in 0.51% property taxes ($1,709/yr), budget 5% of gross rent for maintenance, and underwrite to a 4.9% vacancy rate. On a 20% down conventional loan at 7%, monthly PITI will run approximately $2,025.

Risks and Considerations

Every deal should be evaluated individually using our calculator tools. Median data provides a starting point; actual returns depend on the specific property, financing, and your management approach.

Next Steps

Run the numbers on a specific Ca property using our cap rate calculator (pre-filled with Ca data). Compare Ca against similar markets in the West region. If you're considering a value-add approach, try our BRRRR calculator to model a rehab scenario.

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How Ca Compares

Ca vs Colorado state average and national average across key investment metrics. Ca's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
Ca
Colorado Avg
National Avg
Cap Rate
3.22%
2.75%
3.81%
Median Price
$335K
$611K
$333K
Median Rent
$1,330
$2,042
$1,524
Property Tax
0.51%
0.51%
1.08%
Vacancy
4.9%
4.9%
5.6%
Pop. Growth
1.3%/yr
1.3%/yr
0.9%/yr

Nearby West Markets

City
Cap Rate
Price
Rent
Tax
Ca, CO
3.2%
$335K
$1,330
0.51%
Tucson, AZ
3.3%
$340K
$1,450
0.72%
Albuquerque, NM
3.4%
$340K
$1,500
0.78%
Rio Rancho, NM
3.4%
$340K
$1,500
0.76%
Great Falls, MT
3.0%
$330K
$1,330
0.76%

Frequently Asked Questions

Is Ca, CO a good place to invest in rental property?
Ca has an estimated cap rate of 3.22%, which is below the national average of 3.81%. With median home prices at $335K and rents of $1,330/mo, pure cash flow investing in Ca is challenging at median prices, but value-add strategies can work. Population growth of 1.3% and 4.9% vacancy rate indicate healthy tenant demand.
What is the average cap rate in Ca?
The estimated cap rate for Ca is 3.22%, based on median home prices of $335K, median rents of $1,330/mo, a 0.51% property tax rate, and 4.9% vacancy. This compares to a 2.75% average across Colorado and 3.81% nationally. Cap rates for individual properties will vary based on purchase price, actual rents, and property condition.
How much does a rental property cost in Ca?
The median home price in Ca is $335,000, which is 0% above the national average of $333,419. A 20% down payment would be approximately $67,000. Investment properties in Ca range significantly — targeting properties 15-25% below median can improve your cap rate substantially.
What are Ca property taxes for investors?
Ca's effective property tax rate is 0.51%, which is above the Colorado average of 0.51% and below the national average of 1.08%. On a $335K property, annual taxes are approximately $1,709 ($142/mo). Low property taxes are a significant cash flow advantage here.
Full Ca Analysis →Cap Rate CalculatorBRRRR Calculator

Explore Ca & Related Markets

More Ca Guides

Rent AnalysisProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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