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Cap Rate Analysis: Durango, CO

Investment metrics, interactive calculators, and data-driven analysis for Durango rental properties.

Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026

Challenging for pure cash flow
Based on $660,000 median price and $2,020/mo median rent
Est. Cap Rate
2.18%
1% Rule
0.31%
Fails
GRM
27.2x
Price / Income
10.2x

Market Data

Median Home Price$660,000
Median Monthly Rent$2,020
Property Tax Rate0.51%
Population50,000
Population Growth1.3% / yr
Median Household Income$64,457
Vacancy Rate4.9%
Annual Appreciation2.5%

Cap Rate Calculator — Durango

Pre-filled with Durango 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
1.92%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,672
net operating income
Gross Rent Multiplier
27.2x
High (>15)
1% Rule
0.31%
✗ Fails
Monthly Cash Flow
$1,056
before debt service
Annual Breakdown
Gross Rental Income$24,240
Less Vacancy−$1,188
Effective Income$23,052
Less Operating Expenses−$10,380
Net Operating Income$12,672
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Cash-on-Cash Return — Durango

Factor in financing to see your actual return on invested capital in Durango.

$
$165,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-13.34%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$184,800
$165,000 down + $19,800 closing
Monthly Mortgage
$3,227
on $495K loan
Monthly Cash Flow
$-2,055
after all expenses
Annual Cash Flow
$-24,660
before taxes
Cash Flow Breakdown
Monthly Rent$2,020
Less Expenses−$848
Less Mortgage−$3,227
Monthly Cash Flow$-2,055

Is Durango a Good Place to Invest in Rental Property?

Durango, 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 $660,000 paired with median rents of $2,020/mo produces an estimated cap rate of 2.18%.

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 10.2x, homes cost about 10.2 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, Durango 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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