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Cap Rate Analysis: Aurora, CO

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

Challenging for pure cash flow
Based on $420,000 median price and $1,720/mo median rent
Est. Cap Rate
3.34%
1% Rule
0.41%
Fails
GRM
20.3x
Price / Income
6.7x

Market Data

Median Home Price$420,000
Median Monthly Rent$1,720
Property Tax Rate0.52%
Population395,690
Population Growth1.3% / yr
Median Household Income$62,800
Vacancy Rate5.2%
Annual Appreciation2.5%

Cap Rate Calculator — Aurora

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.52% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.85%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,983
net operating income
Gross Rent Multiplier
20.3x
High (>15)
1% Rule
0.41%
✗ Fails
Monthly Cash Flow
$999
before debt service
Annual Breakdown
Gross Rental Income$20,640
Less Vacancy−$1,073
Effective Income$19,567
Less Operating Expenses−$7,584
Net Operating Income$11,983

Cash-on-Cash Return — Aurora

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

$
$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 Aurora a Good Place to Invest in Rental Property?

Aurora, CO has a population of 395,690 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 3.34%.

Property taxes at 0.52% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 5.2% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.7x, homes cost about 6.7 times the local median income of $62,800. 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, Aurora 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.

Run a BRRRR analysis for Aurora
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