Average capitalization rate in Colorado, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Colorado

MedianMeanMode
7.0%
From 2,525,777 homes
7.2%
From 2,525,777 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Colorado

LocationMedianMeanMode
Acres Green
6.9%
From 1,051 homes
6.8%
From 1,051 homes
-
Adams County
7.5%
From 3,237 homes
7.0%
From 3,237 homes
-
Aetna Estates---
Aguilar
13.5%
From 6 homes
12.8%
From 6 homes
-
Air Force Academy
7.7%
From 1,436 homes
7.6%
From 1,436 homes
-
Akron
11.8%
From 18 homes
13.5%
From 18 homes
-
Alamosa
6.2%
From 3,300 homes
6.4%
From 3,300 homes
-
Alamosa County
7.0%
From 3,538 homes
6.9%
From 3,538 homes
-
Alamosa East
6.1%
From 604 homes
6.1%
From 604 homes
-
Allenspark
5.2%
From 1,359 homes
5.8%
From 1,359 homes
-

All cities in Colorado