Thinking about buying a rental in Aurora but unsure where to start? You are not alone. With steady tenant demand from major employers and a wide range of property types, Aurora can fit both buy-and-hold and house-hack strategies. In this guide, you will learn the demand drivers, the best-fit submarkets, the key numbers to underwrite, and a step-by-step due diligence checklist. Let’s dive in.
Why Aurora attracts renters
Aurora is Colorado’s third-largest city just east of Denver, with neighborhoods that span Arapahoe, Adams, and Douglas counties. That mix means you can find different price points and tenant profiles within a short drive. It also means county lines can affect taxes, school districts, permitting, and some utility or inspection processes.
Employment anchors
- Anschutz Medical Campus and UCHealth bring year-round demand from medical staff, residents, and students.
- Buckley Space Force Base supports military and civilian housing needs with some turnover cadence.
- Denver International Airport and the Peña Boulevard corridor draw airport and logistics workers.
- Retail and logistics centers, including Southlands and distribution hubs along E-470, add steady service-industry jobs.
Commute and transit
- Major routes like I-225, I-70, E-470, Colfax Avenue, and Parker Road shape commute choices.
- RTD rail service on the R Line and nearby A Line access increase appeal near stations.
Tenant profiles and product fit
- Medical professionals and students often favor newer studio to 2-bedroom apartments and turn-key furnished units near Anschutz.
- Airport and logistics workers look for affordable 1 to 2-bedroom options near I-70 and E-470.
- Families moving from Denver for more space often prefer single-family rentals and townhomes with longer lease terms.
- Military and contractor demand near Buckley supports a mix of smaller apartments and single-family homes.
Submarkets to know
Aurora is not one monolithic market. You should evaluate performance at the neighborhood or zip level.
Fitzsimons and Anschutz area
- Strengths: Strong, stable demand from medical employment and education programs.
- Best fit: Studios to 2-bed units, newer multifamily, purpose-built student or tech housing, and furnished rentals.
- Watch outs: Higher purchase prices and more competition from institutional developments. Performance can track healthcare growth.
Central Aurora and Town Center
- Strengths: Transit access and mixed-use redevelopment, plus proximity to Central Park amenities.
- Best fit: Multifamily, townhomes, condo conversions, and house-hack opportunities in older detached homes.
- Watch outs: Older housing stock may need renovation. Street-level variation is real, so comp carefully.
South Aurora and Southlands
- Strengths: Big retail draws, family-focused neighborhoods, and comparatively affordable single-family homes.
- Best fit: Single-family rentals and townhomes. Many investors target this area for steady demand and longer leases.
- Watch outs: Longer commute to central Denver. Rent growth often follows affordability trends more than high-wage job hubs.
East Aurora and Parker Road corridor
- Strengths: Access to Parker and growing suburbs with a suburban tenant base.
- Best fit: Single-family homes, duplexes, and starter homes that convert well to rentals or house hacks.
- Watch outs: Patchy transit access. Value is tied to road improvements and regional growth.
I-70, Peña, and DIA corridor
- Strengths: Strong demand from DIA and logistics hubs with many shift workers.
- Best fit: Affordable 1 to 2-bedroom units and corporate leases geared to airport employees.
- Watch outs: Noise, traffic, and industrial adjacency. These areas may be less appealing for family tenants.
How to underwrite a rental in Aurora
Get clear on your numbers before you write an offer. Use conservative assumptions and stress test them by submarket.
Core metrics to calculate
- Gross scheduled rent based on immediate comps, not citywide averages.
- Vacancy allowance that reflects local conditions. Consider adding 2 to 3 percent above current levels to stress test.
- Operating expenses including insurance, property taxes, repairs, utilities you pay, and management.
- Net Operating Income, which equals income minus operating expenses.
- Cap rate, which is NOI divided by the purchase price.
- Cash-on-cash return, which is annual pre-tax cash flow divided by your actual cash invested.
- Debt service coverage ratio if you are using a loan.
Aurora-specific inputs
- Property taxes vary by county line. Check the assessor for the exact mill levy and recent assessments because taxes can materially change your NOI.
- Insurance for non-owner-occupied properties can run higher. Factor hail and wind risk, and consider wildfire exposure based on location and building type.
- Vacancy assumptions should reflect the submarket, property type, and lease-up risk. Model higher vacancy for single-family rentals in down markets.
- Management fees often run 8 to 10 percent for single-family rentals with leasing fees, and 3 to 6 percent or per-unit pricing for larger multifamily.
- Financing on investment properties usually needs higher down payments and may carry higher rates and stricter DSCR requirements. Compare 30-year fixed, adjustable options, and DSCR lenders.
Interpreting the tradeoffs
- Near Anschutz or transit: Expect stronger stability and lower vacancy with newer multifamily, often at lower cap rates.
- South and East Aurora: Single-family rentals and townhomes can offer better cash flow relative to entry cost, with longer lease terms and family tenants.
- DIA corridor: Strong demand from shift workers, but balance affordability against noise and industrial adjacencies.
House-hack playbook
A house hack can offset your mortgage while you build equity. Focus on properties that create separate living areas and reliable rent streams.
What to target
- Duplexes, triplexes, and fourplexes where you can live in one unit and rent the others.
- Single-family homes with a rentable basement, a lock-off, or potential for an accessory dwelling unit.
- Townhomes and condos only if HOA documents permit rentals and do not include restrictive caps or long lease minimums that limit your plan.
Key checks before you buy
- Zoning and occupancy: Confirm what is allowed for ADUs or separate suites, and whether short-term rentals are permitted.
- HOA rules: Review rental caps, minimum lease terms, screening rules, and any special assessment history.
- Lifestyle fit: Living on-site can help with maintenance and tenant selection, but it also means more interaction and compliance responsibility.
House-hack goalposts
- Aim for rental income that covers a substantial portion of your mortgage and fixed expenses.
- Stress test vacancy and maintenance so you are not cash strapped between tenants.
- Underwrite as if you might move out in the future. Make sure the property still works as a full rental.
Risks to plan for
Every rental market has risks. Aurora’s are manageable if you verify details early and build conservative models.
Market and economic risks
- Oversupply can occur where multifamily projects cluster, especially near Anschutz and transit nodes.
- Interest rate shifts can change monthly payments and compress values for leveraged buyers.
- Submarkets tied to a single employer can be resilient, but large employer changes still matter.
Local regulatory and operational risks
- Verify whether any rental licensing or inspection programs apply in Aurora and stay current on updates.
- Colorado landlord-tenant law sets rules for deposits, notices, and evictions. Local court timelines affect risk and cost.
- Short-term rental rules vary. If you plan to use Airbnb or similar platforms, confirm city and county requirements.
Physical and environmental risks
- Check FEMA flood maps for any floodplain exposure.
- Older homes can hide deferred maintenance. Budget for roofs, HVAC systems, windows, and other capital items.
- Review neighborhood crime data from the Aurora Police Department and consider how neighborhood stability can affect turnover and rents.
Due diligence checklist
Use this list to keep your analysis consistent across properties.
- Rent comps: Active listings and recently leased comps for the same bedroom count and condition within the zip or micro-area.
- Vacancy and rent trends: Zip-level vacancy and rent growth patterns for your submarket and property type.
- Taxes: County assessor records for parcel data, mill levy, assessed value, and recent sales comps.
- HOA: Rental caps, lease minimums, reserves, budgets, and special assessment history.
- Title: Full title report for liens and encumbrances.
- Condition: Inspection report plus contractor estimates for repairs and capital improvements.
- Insurance: Landlord policy quotes and checks for hail, wind, flood, or wildfire exposures.
- Permitting and licensing: Local requirements for rentals, ADUs, or short-term rentals.
Your next steps
If Aurora fits your investment goals, pick one or two submarkets that match your risk and return profile, then underwrite three to five properties to learn the numbers. Use conservative rent comps and stress-test your vacancy and expenses. Finally, line up your property manager and lending options so you can act quickly when the right home hits the market.
If you want a second set of eyes or local comp support, reach out to Michael Todd. As a Denver native with hands-on brokerage across Aurora and the inner-ring suburbs, Michael can help you source options, validate your underwriting, and negotiate with confidence. Se habla español.
FAQs
Is Aurora a good market for cash flow or stability?
- It can offer both, depending on submarket and property type. Near Anschutz and transit you may see lower vacancy with lower cap rates, while South and East Aurora single-family rentals and townhomes can offer stronger cash flow relative to entry price.
How do county lines in Aurora affect my underwriting?
- Parts of Aurora sit in Arapahoe, Adams, and Douglas counties. Property taxes, school districts, and some permitting or inspection processes can differ, so always confirm county-specific details before you buy.
What regulations should I check before renting?
- Confirm Aurora’s current rental licensing or inspection rules, review Colorado landlord-tenant statutes for deposits and notices, and verify city and county requirements if you plan a short-term rental.
Which Aurora submarkets fit a house hack?
- Central and East Aurora often have older homes with layouts that can support a rentable basement or lock-off, while duplex and townhome options appear across several areas. Always confirm zoning and HOA rules first.
What are reasonable management cost assumptions?
- Many single-family rentals budget 8 to 10 percent of collected rent plus leasing fees. Larger multifamily can see 3 to 6 percent or per-unit pricing. Get quotes that match your property type and size.
How should I stress test vacancy and expenses?
- Add 2 to 3 percent to current vacancy for your submarket, pad maintenance and capital reserves for older homes, and check insurance quotes that reflect hail, wind, flood, or wildfire risk in your area.
