Real Estate Investing in Telluride, Colorado (81435)

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

San Miguel • Population: 5,626 • Data updated: September 2026

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Should you buy in 81435 (Telluride, CO)? Our answer, based on the numbers below.

🏠 For Homebuyers
CAUTION
Grade D (41/100)

Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.

📈 For Investors
MIXED
3.0 / 5 (47/100)

A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.

⚠️ Risks to Know
2 flags
  • High vacancy: 45.7% of homes vacant — above national norms.
  • High price-to-rent: Price-to-rent ratio 121.2 — hard to cash-flow at these prices.

• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.

What’s happening in Telluride, CO (81435)?

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3.0/ 5

Investability

Overall investment appeal

3.0/ 5

Appreciation

Long-term value growth

2.0/ 5

Cashflow ROI

Rental yield potential

Avg Home Value $2,186,087
Avg Monthly Rent $1,503
1% Rule ✗ Does Not Meet
Median Income $75,258
% Renters 45.6%

Market Analysis: 81435 Telluride

Investors eyeing 81435 need to respect the fundamentals at play. Home values of $2.2M come alongside slower price movement and elevated management overhead.

If the plan assumes clean turnover, on-time rent, and low maintenance on a $2.2M asset, 81435 is the wrong submarket. If the plan prices in friction, the yield can still work.

Within CO, ZIP 81435 trails on several market indicators that neighboring San Miguel submarkets outperform. The gap is real and substantial enough to shape underwriting.

A resilient renter share of 46% in 81435 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.

Distressed ZIPs reward experience. healthy returns are possible in 81435, but they flow to investors who already understand how to operate in soft markets.

Explore the Data — Click a Tab Below
🏦 Current 30-yr Fixed Mortgage Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS

Here's what matters if you're considering buying a home in Telluride:

C Below Average
Buy Confidence Score: 54/100
Affordability
0/25
Appreciation
25/25
Stability
9/20
Timing
8/15
Rental backup
12/15
Affordability
Expensive
Homes cost 29× the median income
Value Trend
Rising (+4.6%)
How home values changed in the past year
Rental Backup
Strong
Could rent for $1,503/mo if you need to move
Market Conditions
BALANCED
Even conditions for buyers and sellers
Bottom Line: This market may be challenging for buyers. Consider your timing and budget carefully.
🏠

Property Strategy for 81435

Which property type performs best in this market?

Best for Cash Flow
1BR
1.2% cap rate
Best for Appreciation
3BR
+13.8% 5yr CAGR
Best Overall Value
2BR
$708,309/bedroom
📊 Compare All Property Types →
Type Median Value Est. Rent Cap Rate 5yr CAGR $/Bedroom
1BR $791,035 $1,270 1.2% +10.6% $791,035
2BR $1,416,617 $1,670 0.8% +10.8% $708,309
3BR $2,818,444 $2,320 0.6% +13.8% $939,481
4BR $5,173,798 $2,620 0.4% +13.4% $1,293,450
5BR $8,979,662 +12.4% $1,795,932

Market Trends

Home Value History (with trend line)

$2.3M$2.0M$1.6M$1.2M$814K$431KJul 2006Jul 2016Jul 2026

📊 How Does 81435 Compare?

Metric 81435 Telluride Colorado
Home Value $2,186,087 $2,186,087 $535,778
5-Year CAGR 7.5% 7.5% 4.9%
Avg Rent $1,503 $1,503 -
Cap Rate 0.5% 0.5% -
💡 Why Invest in 81435? Click to expand

With a 3/5 investability rating, this ZIP shows solid fundamentals for buy-and-hold investors.

A healthy rental market with 46% renter-occupied households ensures tenant availability.

📊 See where this ZIP ranks in our Best-of lists →
A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Landlord Ground Truth

Real numbers from people who own or manage rentals in ZIP 81435 (Telluride, CO). Anonymous, moderated, never written by AI.

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Investability
Good
Cap Rate
0.5%
Low
5yr Growth
+7.5%
Strong

📊 Market Snapshot

Home Value $2,186,087
Monthly Rent $1,503
Price-to-Rent 121.2:1
1% Rule ✗ Fails

💰 Return Metrics

Gross Yield 0.8%
Cap Rate 0.5%
5-Year IRR 8.0%

📈 Home Appreciation

1-Year +4.6% ▲
3-Year CAGR +3.8% ▲
5-Year CAGR +7.5% ▲
10-Year CAGR +9.6% ▲

🏠 Rent Trends

1-Year N/A
3-Year CAGR N/A
5-Year CAGR N/A
Negative Leverage — IRR / Tax Play Cap Rate: 0.5%  |  30yr Rate: 6.8%
Leverage reduces cash returns at current rates.

The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (0.5%). 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.

Vacancy
45.7%
Elevated risk
Landlord Climate
5.0/5
Friendly
Value Trend (5yr)
+7.5%
Growing
Eviction process: Moderate Rent control: Favorable

Demographics in 81435

Population: 5,626

💰 Median Household Income
$75,258
This area
$75,258
State
$79,719
USA
$74,580
🏠 Renter Occupied
45.6%
This area
45.6%
State
26.4%
USA
34.0%
💼 Unemployment Rate
2.4%
This area
2.4%
State
-25.8%
USA
3.7%
🎓 College Educated
70.2%
This area
70.2%
State
5.8%
USA
33.7%
👤 Median Age
38.3 years
This area
38.3 years
State
-0.1 years
USA
38.9 years
🏚️ Vacancy Rate
45.7%
This area
45.7%
State
18.7%
USA
10.5%
👥 Population by Ethnicity
White 89.6%
Other/Mixed 8.6%
Hispanic/Latino 5.7%
Asian 1.0%
Black/African American 0.8%
👶 Under 18
16.8%
This area
16.8%
USA
22.0%
👴 65 and Over
11.1%
This area
11.1%
USA
17.3%
📊 Poverty Rate
3.4%
This area
3.4%
USA
11.5%

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 81435

A Avg School Grade
4 Schools
18.1:1 Avg Class Size
$21,896 Avg Per Pupil

Schools in This ZIP Code

A+ Excellent

Telluride Elementary School

📚 Pre-K – 02 Elementary
👥
143 Students
👨‍🏫
10.6:1 Class Size
💰
$21,896 Per Student
A+ Excellent

Telluride Intermediate School

📚 03 – 06 School
👥
233 Students
👨‍🏫
14.5:1 Class Size
💰
$21,896 Per Student
A Very Good

Telluride High School

📚 09 – 12 High School
👥
303 Students
👨‍🏫
15.1:1 Class Size
💰
$21,896 Per Student
C+ Average

Telluride Middle School

📚 07 – 08 Middle
👥
122 Students
👨‍🏫
32.1:1 Class Size
💰
$21,896 Per Student
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

What type of investing works in Telluride, CO?

In Telluride, CO the robust play is typically careful cash-flow rentals with hands-on management. The combination of $2.2M prices and $1,503/mo rents suits that approach.

What do rentals go for in Telluride, CO?

Rents in Telluride, CO run near $1,503/mo. Compared with median home prices of $2.2M that produces solid gross yields for typical rentals.

What is the typical home price in Telluride, CO?

The median home value in Telluride, CO is roughly $2.2M. That puts it reasonable relative to the CO statewide average.

What is the rental occupancy rate in Telluride, CO?

Expect elevated vacancy in Telluride, CO. Rents at $1,503/mo are absorbed by the tenant base without meaningful lag.

Is Telluride, CO good for landlords?

Telluride, CO operates under CO law, which is landlord-friendly overall for landlords. Expect measured treatment in typical lease and eviction cases.

You know 81435 now. You don’t know where it ranks.

This page stays free — all of it. What one page can’t tell you is how 81435 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.

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