Real Estate Investing in Florence, Colorado (81226)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 81226 (Florence, CO)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Florence, CO (81226)?
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Market Analysis: 81226 Florence
ZIP 81226 in Florence, CO carries a robust set of headwinds. Home values near $299K and rents of $1,223/mo sit inside a market where underwriting has to be tight.
From an investor standpoint, the numbers look inviting — $299K purchase price, 0.0% nominal cap — the work to hit that pro forma in 81226 is substantial and deserves full respect.
From a cash-flow lens, 81226 offers a low basis, the region around Florence has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
Resident income in 81226 sits below the county median. That reality colors rent collection, vacancy, and reinvestment math in ways that outside investors often underestimate.
Strategically, 81226 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Florence:
Property Strategy for 81226
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $166,892 | $920 | 4.0% | +3.2% | $166,892 |
| 2BR | $233,667 | $1,200 | 3.7% | +6.2% | $116,833 |
| 3BR | $319,158 | $1,540 | 3.5% | +6.5% | $106,386 |
| 4BR | $354,470 | $1,600 | 3.2% | +5.6% | $88,618 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 81226 Compare?
| Metric | 81226 | Florence | Colorado |
|---|---|---|---|
| Home Value | $299,108 | $299,108 | $535,778 |
| 5-Year CAGR | 3.5% | 3.5% | 4.9% |
| Avg Rent | $1,223 | $1,223 | - |
| Cap Rate | 3.2% | 3.2% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 81226 (Florence, CO). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $299,108 |
| Monthly Rent | $1,223 |
| Price-to-Rent | 20.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.9% |
| Cap Rate | 3.2% |
| 5-Year IRR | 6.7% |
📈 Home Appreciation
| 1-Year | -0.5% ▼ |
| 3-Year CAGR | +1.0% ▲ |
| 5-Year CAGR | +3.5% ▲ |
| 10-Year CAGR | +8.3% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.2%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 81226
Population: 7,933
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 81226
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
Frequently Asked Questions
How does Florence, CO stack up for property investment?
Florence, CO sits at an investability rating of 3.0/5, with median home values near $299K and average rents around $1,223/mo. That combination puts it in the resilient tier for investor interest.
What type of investing works in Florence, CO?
A careful cash-flow rentals with hands-on management strategy Florence, CO best. The market produces reliable results for that approach at the $299K price point.
Is Florence, CO a friendly market for rental owners?
Florence, CO falls under CO landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Is Florence, CO a good market for FHA house hackers?
Florence, CO offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,223/mo rent level.
Should investors worry about vacancy in Florence, CO?
Florence, CO sees elevated vacancy, which is reasonable relative to the broader CO rental market.
You know 81226 now. You don’t know where it ranks.
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How 81226 ranks in Ca-¦on City, CO
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