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Cap Rate Analysis: Lakewood, CO

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

Challenging for pure cash flow
Based on $465,000 median price and $1,750/mo median rent
Est. Cap Rate
3.00%
1% Rule
0.38%
Fails
GRM
22.1x
Price / Income
6.8x

Market Data

Median Home Price$465,000
Median Monthly Rent$1,750
Property Tax Rate0.5%
Population157,000
Population Growth0.8% / yr
Median Household Income$68,200
Vacancy Rate4.8%
Annual Appreciation2.4%

Cap Rate Calculator — Lakewood

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

Property Details
$
$
3–8% typical
%
Monthly Expenses
0.5% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
2.59%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$12,024
net operating income
Gross Rent Multiplier
22.1x
High (>15)
1% Rule
0.38%
✗ Fails
Monthly Cash Flow
$1,002
before debt service
Annual Breakdown
Gross Rental Income$21,000
Less Vacancy−$1,008
Effective Income$19,992
Less Operating Expenses−$7,968
Net Operating Income$12,024

Cash-on-Cash Return — Lakewood

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

$
$116,250
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-11.60%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$130,200
$116,250 down + $13,950 closing
Monthly Mortgage
$2,274
on $349K loan
Monthly Cash Flow
$-1,259
after all expenses
Annual Cash Flow
$-15,103
before taxes
Cash Flow Breakdown
Monthly Rent$1,750
Less Expenses−$735
Less Mortgage−$2,274
Monthly Cash Flow$-1,259

Is Lakewood a Good Place to Invest in Rental Property?

Lakewood, CO has a population of 157,000 and has been growing at 0.8% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $465,000 paired with median rents of $1,750/mo produces an estimated cap rate of 3.00%.

Property taxes at 0.5% are well below the national average of ~1.1%, providing a meaningful cash flow advantage many investors overlook. The vacancy rate of 4.8% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.

At a price-to-income ratio of 6.8x, homes cost about 6.8 times the local median income of $68,200. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.4% 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, Lakewood 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.

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