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Cap Rate Analysis: Sterling, CO

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

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

Moderate — source deals carefully
Based on $250,000 median price and $1,220/mo median rent
Est. Cap Rate
4.26%
1% Rule
0.49%
Fails
GRM
17.1x
Price / Income
3.9x

Market Data

Median Home Price$250,000
Median Monthly Rent$1,220
Property Tax Rate0.51%
Population50,000
Population Growth1.3% / yr
Median Household Income$64,457
Vacancy Rate4.9%
Annual Appreciation2.5%

Cap Rate Calculator — Sterling

Pre-filled with Sterling 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
3.61%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,015
net operating income
Gross Rent Multiplier
17.1x
High (>15)
1% Rule
0.49%
✗ Fails
Monthly Cash Flow
$751
before debt service
Annual Breakdown
Gross Rental Income$14,640
Less Vacancy−$717
Effective Income$13,923
Less Operating Expenses−$4,908
Net Operating Income$9,015
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Cash-on-Cash Return — Sterling

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

$
$62,500
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-8.82%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$70,000
$62,500 down + $7,500 closing
Monthly Mortgage
$1,222
on $188K loan
Monthly Cash Flow
$-514
after all expenses
Annual Cash Flow
$-6,172
before taxes
Cash Flow Breakdown
Monthly Rent$1,220
Less Expenses−$512
Less Mortgage−$1,222
Monthly Cash Flow$-514

Is Sterling a Good Place to Invest in Rental Property?

Sterling, 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 $250,000 paired with median rents of $1,220/mo produces an estimated cap rate of 4.26%.

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 3.9x, homes cost about 3.9 times the local median income of $64,457. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. 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: Sterling presents moderate opportunities. Cap rates near 4.26% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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