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MarketsColoradoCaRent Analysis

Rent Analysis: 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

Rent Overview

The median monthly rent in Ca, CO is $1,330, translating to $15,960 in annual gross rental income per unit. The rent-to-price ratio is 0.40% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.40% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $397/mo in gross rent. The gross rent multiplier of 21.0x means it takes 21.0 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.

Rent Affordability

Renters in Ca spend approximately 25% of the local median household income ($64,457) on rent. This is well below the 30% threshold, suggesting significant headroom for rent increases. The 30% affordability ceiling puts maximum supportable rent at approximately $1,611/mo — a full $281/mo above the current median of $1,330. This gap represents real upside for landlords who invest in property upgrades that justify premium rents.

Vacancy & Tenant Demand

The vacancy rate in Ca is 4.9%. This is extremely tight — expect strong tenant demand, quick lease-ups, and leverage to set favorable lease terms. In markets this tight, landlords often see multiple applications per listing and can be highly selective on credit scores and income verification. You can also justify annual rent increases of 3-5% without significant pushback. Population growth of 1.3% annually is actively adding rental demand, creating a tailwind for landlords.

Gross Rent Multiplier

Ca's GRM (price divided by annual rent) is 21.0x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Ca's median GRM, target properties where you can achieve rents above $1,330 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $335,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.

Rental Income Projection

At the median rent of $1,330/mo, a single-family rental in Ca generates approximately $15,960 in gross annual income. After accounting for 4.9% vacancy ($782 lost), property taxes of $1,709, insurance (~$1,340), and maintenance (~$1,340), the estimated NOI is $10,789 per year, or $899/mo. Adding an 8% management fee ($1,277/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $9,513/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $67,000 down payment, the unlevered yield on equity from NOI alone is 16.1%.

Rent Growth Potential

Rent growth in Ca is driven by the interplay of population growth (1.3%), income growth, and housing supply constraints. Moderate population growth of 1.3% supports steady rent increases of approximately 2.5% per year. That trajectory takes today's $1,330/mo to $1,432 in 3 years and $1,505 in 5 years. The affordability headroom of $281/mo between current rents and the 30% income threshold provides substantial room for rent increases without pushing tenants into financial stress.

Tenant Profile

The median income of $64,457 supports a mixed tenant base of young professionals, small families, and long-term renters. In a smaller market of 50,000 residents, word-of-mouth and local listing platforms may be more effective than national sites for finding tenants.

Management Considerations

Ca is a smaller market where professional PM options may be limited. Fees can run 10-12% of rent, and the quality of available managers varies widely. At $1,330/mo, management costs roughly $146/mo. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,330/mo, self-management of a small portfolio saves meaningful dollars but professional management becomes economical at 3-4 units.

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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

What is the average rent in Ca, CO?
The median monthly rent in Ca is $1,330, or $15,960 per year. This is 13% below the national average of $1,524/mo. Rent levels vary by neighborhood, property condition, and unit size — always verify comparable rents for your target property.
Is Ca a good rental market for landlords?
With a rent-to-price ratio of 0.40%, Ca falls below the 1% rule, meaning cash flow depends on buying below median or achieving above-median rents. The 4.9% vacancy rate signals tight rental demand, favorable for landlords.
How does Ca rent compare to Colorado averages?
Ca's median rent of $1,330/mo is 35% below the Colorado average of $2,042/mo. Home prices at $335K are below the state average of $611K, giving Ca a rent-to-price ratio of 0.40% vs 0.33% statewide.
What is a good rent-to-price ratio?
The 1% rule says monthly rent should be at least 1% of purchase price ($1,000/mo rent on a $100,000 home). Ca's ratio is 0.40%. Generally, above 0.8% is workable with good financing, above 1% is strong, and above 1.2% is exceptional. The national average across the 300+ cities we track is 0.46%.
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Explore Ca & Related Markets

More Ca Guides

Rental Property Investment GuideProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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