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Cap Rate Analysis: Pueblo, CO

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

Moderate — source deals carefully
Based on $255,000 median price and $1,220/mo median rent
Est. Cap Rate
4.08%
1% Rule
0.48%
Fails
GRM
17.4x
Price / Income
6.0x

Market Data

Median Home Price$255,000
Median Monthly Rent$1,220
Property Tax Rate0.53%
Population112,000
Population Growth0.5% / yr
Median Household Income$42,800
Vacancy Rate5.8%
Annual Appreciation2.5%

Cap Rate Calculator — Pueblo

Pre-filled with Pueblo medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.53% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.44%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$8,775
net operating income
Gross Rent Multiplier
17.4x
High (>15)
1% Rule
0.48%
✗ Fails
Monthly Cash Flow
$731
before debt service
Annual Breakdown
Gross Rental Income$14,640
Less Vacancy−$849
Effective Income$13,791
Less Operating Expenses−$5,016
Net Operating Income$8,775

Cash-on-Cash Return — Pueblo

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

$
$63,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-9.06%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$71,400
$63,750 down + $7,650 closing
Monthly Mortgage
$1,247
on $191K loan
Monthly Cash Flow
$-539
after all expenses
Annual Cash Flow
$-6,466
before taxes
Cash Flow Breakdown
Monthly Rent$1,220
Less Expenses−$512
Less Mortgage−$1,247
Monthly Cash Flow$-539

Is Pueblo a Good Place to Invest in Rental Property?

Pueblo, CO has a population of 112,000 and has been growing at 0.5% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $255,000 paired with median rents of $1,220/mo produces an estimated cap rate of 4.08%.

Property taxes at 0.53% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.0x, homes cost about 6.0 times the local median income of $42,800. This moderate ratio indicates a balanced rent-vs-buy market. 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: Pueblo presents moderate opportunities. Cap rates near 4.08% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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