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MarketsColoradoEdwards

Cap Rate Analysis: Edwards, CO

Investment metrics, interactive calculators, and data-driven analysis for Edwards 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 $1,300,000 median price and $3,630/mo median rent
Est. Cap Rate
1.88%
1% Rule
0.28%
Fails
GRM
29.8x
Price / Income
20.2x

Market Data

Median Home Price$1,300,000
Median Monthly Rent$3,630
Property Tax Rate0.51%
Population50,000
Population Growth1.3% / yr
Median Household Income$64,457
Vacancy Rate4.9%
Annual Appreciation2.5%

Cap Rate Calculator — Edwards

Pre-filled with Edwards 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
1.67%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$21,758
net operating income
Gross Rent Multiplier
29.8x
High (>15)
1% Rule
0.28%
✗ Fails
Monthly Cash Flow
$1,813
before debt service
Annual Breakdown
Gross Rental Income$43,560
Less Vacancy−$2,134
Effective Income$41,426
Less Operating Expenses−$19,668
Net Operating Income$21,758
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Cash-on-Cash Return — Edwards

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

$
$325,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-14.02%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$364,000
$325,000 down + $39,000 closing
Monthly Mortgage
$6,356
on $975K loan
Monthly Cash Flow
$-4,251
after all expenses
Annual Cash Flow
$-51,015
before taxes
Cash Flow Breakdown
Monthly Rent$3,630
Less Expenses−$1,525
Less Mortgage−$6,356
Monthly Cash Flow$-4,251

Is Edwards a Good Place to Invest in Rental Property?

Edwards, 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 $1,300,000 paired with median rents of $3,630/mo produces an estimated cap rate of 1.88%.

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 20.2x, homes cost about 20.2 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, Edwards 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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