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Cap Rate Analysis: Grand Junction, CO

Investment metrics, interactive calculators, and data-driven analysis for Grand Junction 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 $420,000 median price and $1,720/mo median rent
Est. Cap Rate
3.36%
1% Rule
0.41%
Fails
GRM
20.3x
Price / Income
6.5x

Market Data

Median Home Price$420,000
Median Monthly Rent$1,720
Property Tax Rate0.51%
Population50,000
Population Growth1.3% / yr
Median Household Income$64,457
Vacancy Rate4.9%
Annual Appreciation2.5%

Cap Rate Calculator — Grand Junction

Pre-filled with Grand Junction 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
2.88%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,081
net operating income
Gross Rent Multiplier
20.3x
High (>15)
1% Rule
0.41%
✗ Fails
Monthly Cash Flow
$1,007
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$1,011
Effective Income$19,629
Less Operating Expenses−$7,548
Net Operating Income$12,081
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Cash-on-Cash Return — Grand Junction

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

$
$105,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.77%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$117,600
$105,000 down + $12,600 closing
Monthly Mortgage
$2,054
on $315K loan
Monthly Cash Flow
$-1,056
after all expenses
Annual Cash Flow
$-12,667
before taxes
Cash Flow Breakdown
Monthly Rent$1,720
Less Expenses−$722
Less Mortgage−$2,054
Monthly Cash Flow$-1,056

Is Grand Junction a Good Place to Invest in Rental Property?

Grand Junction, 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 $420,000 paired with median rents of $1,720/mo produces an estimated cap rate of 3.36%.

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 6.5x, homes cost about 6.5 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, Grand Junction 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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