As of Q4 2025, average multifamily cap rates in the Denver metro area were approximately 5%, although cap rates vary depending on property size, condition, location, and overall investment risk. In general, properties with cap rates between 6% and 8% often offer higher potential returns but may also involve greater risk or require more improvements. A cap rate is calculated by dividing a property’s Net Operating Income (NOI) by its purchase price. While Denver cap rates tend to be lower than in many other markets due to higher real estate values and strong investor demand, owners have historically benefited from long-term appreciation and equity growth.
