Rent vs buy in Denver, CO
A 7-year breakeven using this ZIP's actual home-value and rent trends, not national averages. ZIP 80205 (Denver County).
Renting wins in Denver over 7 years by about $262,893 — buying only beats it if prices appreciate faster than projected.
7-year cost comparison
$436,249
Net cost over 7 years after equity
Equity built: $113,245
$173,356
Total rent paid over 7 years
No equity, no selling costs
Assumes 20% down, 6.75% rate, -1.0%/yr price growth and 0.9%/yr rent growth (this ZIP's 5-yr trend).
Price-to-rent ratio
23.0x
Favors renting — price is high relative to rent
Price-to-income
5.9x
Stretched (>5x — historically expensive vs local incomes)
5-yr price CAGR
-1.0%
Annualized home-value growth
Denver — rent vs buy questions
Is Denver, CO a good rental market?
Tough for cash flow. At 23.0x, Denver is appreciation-driven — most investors here bank on equity growth, not monthly rent spread.
What is the median home value in Denver?
The typical home value in Denver is about $554,302 (ZIP-level market index, cross-checked against the Census ACS county median updated by FHFA HPI), down 1.5% year-over-year, and down 5.0% over five years.
What is the median rent in Denver?
The typical rent in Denver is about $2,010/mo (ZIP-level market-rent index, cross-checked against HUD Small Area FMR), up 2.4% year-over-year.
Is it cheaper to rent or buy in Denver?
Over a 7-year horizon, renting is cheaper in Denver by about $262,893 — buying only pays off if prices appreciate faster than projected.
Is Denver affordable for homebuyers?
Denver's median home value is 5.9x the local median household income — Stretched (>5x — historically expensive vs local incomes).
Data: FHFA HPI, Census ACS, HUD FMR, FBI CDE. For research only — verify before deciding.