Quick answer
At current rates, renting wins over the full 30-year horizon in Denver. Monthly ownership cost $3,876 (vs $$2,250/mo rent) plus CO's 0.55% property tax make the math tough.
Rent vs Buy · CO
Rent vs Buy in Denver (2026)
Real math using CO's 0.55% property tax rate, $2,400/year average insurance, and a 6.8% 30-year fixed mortgage. Accounts for opportunity cost — what the down payment would earn invested at 7%.
Last updated: April 23, 2026
Verdict at current rates
Renting wins (30-year horizon)
In Denver at CO's tax rates and current 6.8% mortgages, keeping the down payment invested at 7% beats homeownership even after 30 years. The standard advice "buy to build equity" doesn't apply here at today's price-to-rent ratio.
Monthly Cost Breakdown
Buying
$3,876/mo
Mortgage P&I
$452,000 loan, 30yr @ 6.8%
$2,947
Property tax
0.55% of assessed (CO avg)
$259
Homeowners insurance
$2,400/yr CO avg
$200
Maintenance
1%/yr of home value
$471
Cash at close: ~$127,125 ($20% down + fees)
Renting
$2,250/mo
2BR rent (median)
Denver market rate
$2,250
Renters insurance
~$15/mo typical
$15
Down payment invested
$113,000 growing at 7%/yr
(opportunity cost)
Monthly gap: $1,626 cheaper than buying. Renter invests that difference.
Year-by-Year Net Position
"Buy wins by" = what you'd clear selling the home minus what the renter has in investments. Positive = buy ahead.
| Year | Home value | Buyer equity (net) | Renter portfolio (net) | Buy wins by |
|---|---|---|---|---|
| Year 5 | $654,990 | $-158,704 | +$122,137 | $-280,841 |
| Year 10 | $759,313 | $-229,064 | +$154,479 | $-383,543 |
| Year 15 | $880,252 | $-263,645 | +$222,476 | $-486,121 |
| Year 30 | $1,371,403 | +$8,234 | +$865,162 | $-856,929 |
Assumptions
Every rent-vs-buy calculator depends on the assumptions. Here are ours — all transparent, none cherry-picked to bias the answer.
This is a rule-of-thumb calculator. Real decisions involve your specific tax bracket, any HOA, mortgage points, closing-cost negotiations, and exact loan terms.
Frequently Asked Questions
Is it better to rent or buy in Denver?
In Denver at current mortgage rates (6.8%), renting and investing the down payment beats buying for the full 30-year horizon. Median monthly ownership costs ($3,876) well exceed median 2BR rent ($2,250), and CO's 0.55% property tax makes the math especially tough.
What's the monthly cost of owning a home in Denver?
On a median $565K home with 20% down at 6.8% fixed rate: mortgage P&I $2,947, property tax $259 (0.55% of assessed value), homeowners insurance $200 (CO average $2,400/year), and maintenance $471 (1% of home value/year). Total: $3,876/month.
How much down payment do I need to buy in Denver?
20% down on a median Denver home ($565K) is $113,000. Plus closing costs of roughly 2.5% ($14,125). Total cash-to-close: about $127,125. FHA loans allow 3.5% down ($19,775) but require mortgage insurance that adds ~$220/month.
What's the 10-year cost of renting vs buying in Denver?
Over 10 years in Denver: renters pay $309,525 in cumulative rent but have $464,004 invested (assuming 7% return on the $113,000 down payment + monthly savings). Buyers have paid $556,790 in total ownership costs and hold $373,285 in home equity. Net: renting is ahead by $383,543 at year 10.