Buying a rental in Colorado Springs can look straightforward on paper, but the numbers only tell part of the story. If you are hoping to create steady income, build long-term wealth, or add your first investment property, you need more than a citywide rent average and a quick mortgage estimate. The good news is that with the right due diligence, you can make a more confident decision and avoid expensive surprises. Let’s dive in.
Colorado Springs Has Real Rental Demand
Colorado Springs and El Paso County are still dealing with a major housing shortage. According to the city’s regional housing assessment, the area is short about 27,000 housing units today and will need about 60,000 homes by 2035.
That supply gap matters because it helps explain why rental demand remains strong. The same fact sheet says rents rose more than 35% from 2015 to 2022 after adjusting for inflation, while home values rose more than 60% during that period. As of March 2025, typical rent was about $1,780 in Colorado Springs and $1,825 in El Paso County.
At the same time, demand does not mean every rental performs the same way. About 53% of renter-occupied households in the area are cost-burdened, which means affordability pressure is real. For you as a buyer, that is a reminder to underwrite carefully and avoid assuming you can simply push rents higher without resistance.
Citywide Rents Can Mislead You
One of the biggest mistakes investors make is relying on one rent number for the whole city. In Colorado Springs, pricing varies a lot depending on the property type and the source of the data.
Recent reports show that Zillow lists an all-property average rent around $1,900, RentCafe shows an apartment average of $1,519, and Trulia reports averages of about $1,300 for apartments and condos, $2,100 for townhomes, and $2,450 for houses. Those are very different numbers, and they should shape how you evaluate a deal.
The lesson is simple: compare like with like. A detached house, a townhome, and a condo may all be rentals, but they do not rent the same way, carry the same maintenance profile, or attract the same level of monthly income.
Use Neighborhood-Specific Rent Comparisons
Colorado Springs is not one uniform rental market. Neighborhood-level data shows meaningful differences in pricing even within the same city.
RentCafe reports that the largest share of rentals falls between $1,501 and $2,000 per month, but example averages range from about $1,034 in Pikes Peak Park to about $1,887 in Springs Ranch. That spread is too large to ignore when you are forecasting cash flow.
If you are evaluating a property, focus on same-type, same-neighborhood rental comps whenever possible. A house in one part of town should not be underwritten using apartment data from another part of the city. That extra step can help you avoid overestimating income from day one.
Rent Growth Looks Softer Right Now
It is also important to go in with realistic expectations about near-term rent growth. Several recent rent trackers suggest rents are broadly flat to slightly softer year over year, depending on the source.
Zillow says the all-home average is down $7 year over year. RentCafe reports apartment rent down 0.73% from the prior year, and Trulia shows the overall average down 4% from the previous year.
That does not mean Colorado Springs is a weak rental market. It means you should be cautious about buying a property that only works if rent climbs quickly. Conservative assumptions usually create better investment decisions, especially in a market where results can vary so much by asset type and location.
Property Type Matters More Than You Think
Colorado Springs housing stock is still mostly single-family. The regional inventory shows the city is about 61% detached single-family homes, 14% attached or small multifamily housing such as townhomes and duplexes, and 18% large multifamily buildings.
That mix affects what you are most likely to find as a buyer. For many small investors, the practical entry points are detached homes, condos, townhomes, duplexes, or other small attached properties.
Each option comes with a different operating profile. A detached home may offer stronger rent potential but more exterior maintenance. A condo or townhome may have a different upkeep pattern, but you still need to verify whether the overall numbers and rules fit your plan.
Older Housing Stock Means Bigger Due Diligence
Many buyers are surprised to learn that Colorado Springs housing is older than expected. The city reports a median housing age of 1986.
Older homes can still make strong rentals, but they often require a closer look at systems, deferred maintenance, and upcoming capital expenses. If you are buying an older property, review the condition of the roof, plumbing, heating, exterior surfaces, and any signs of wear that could affect tenant readiness.
This is where realistic reserve planning matters. A property that looks attractive based on purchase price alone can become a much weaker investment if you underbudget for repairs and replacements.
Weather and Climate Affect Ownership Costs
Colorado Springs is not a low-maintenance climate. National Weather Service normals show about 15.91 inches of annual precipitation and 50.4 inches of annual snowfall.
That weather profile can affect roofs, gutters, exterior paint, drainage, walkways, and general wear over time. If you are buying a detached home or small multifamily property, seasonal maintenance should be part of your expense planning from the start.
Wildfire readiness can also matter depending on location and property type. The city says new construction in designated Wildland Urban Interface areas must follow mitigation measures, so if you are considering a newer build in one of those areas, confirm what applies.
Minimum Housing Standards Are Not Optional
Before you close on a rental, make sure you understand the city’s minimum housing standards. Colorado Springs states that any dwelling rented or used for residential purposes must meet those standards and be free from pests and plumbing problems.
The city code also addresses heat, utilities, and required facilities. In practical terms, tenant-readiness is not just about fresh paint and clean flooring. It means the property needs to function properly and meet local requirements before and during occupancy.
For investors, that should influence both your inspection process and your repair budget. A lower-priced property may still cost more in the long run if it needs extensive work to become compliant and rentable.
Short-Term Rental Plans Need Extra Review
If your plan involves furnished or short-term rental income, do not assume every property will qualify. Colorado Springs requires short-term rental permits and zoning compliance.
The city also says non-owner-occupied short-term rentals face additional standards. Permits are issued to a specific owner, and properties with an accessory dwelling unit may not also be used as a short-term rental.
That means your short-term rental strategy should be confirmed before you buy, not after. If a property only works for you as a short-term rental, the permit and zoning questions need to be part of your upfront screening.
Compliance Should Be Built Into Your Numbers
A rental property is not just a purchase. It is an ongoing operation, and the legal side matters from the beginning.
Colorado fair housing rules apply to landlords. The Colorado Division of Real Estate says the state’s fair housing provisions cover housing offered for sale, lease, rent, or transfer of ownership. The Colorado Attorney General also says refusing to rent based on source of income, including housing vouchers, is prohibited under Colorado law except in limited situations.
Security deposit rules matter too. A Colorado legislative summary says landlords generally must return a security deposit within one month after the tenancy ends or the unit is surrendered, unless the lease extends that period up to 60 days.
There is also a newer habitability requirement to know. The 2024 Safe Housing for Residential Tenants law requires leases entered after January 1, 2025 to include a statement in English and Spanish about where tenants can report unsafe or uninhabitable conditions.
For you, the takeaway is clear: build compliance into the deal from day one. That includes fair screening practices, a legally sound lease, repair procedures, notice procedures, and realistic cash reserves.
A Smarter Way To Evaluate a Rental
When you are comparing opportunities in Colorado Springs, it helps to keep your analysis simple and grounded. Start with the basics, then stress-test the property against local realities.
Here are a few smart questions to ask before you buy:
- What are the most relevant same-type rental comps in the immediate area?
- Is the projected rent based on the actual asset class, not a citywide average?
- How old is the property, and what systems may need near-term replacement?
- What maintenance costs could be higher because of snow, weather, or exterior exposure?
- Does the property meet local housing standards now, or will repairs be needed?
- If the plan is short-term rental use, has zoning and permit eligibility been confirmed?
- Do the numbers still work if rent growth stays flat for a while?
These questions will not answer everything, but they can help you spot weak assumptions before they become expensive mistakes.
Why Local Guidance Matters
Colorado Springs can absolutely make sense for a rental purchase, but it rewards careful buyers. Property type, neighborhood, home age, and compliance burden all matter just as much as gross rent.
This is where practical local guidance can make a real difference. When you work with someone who understands both residential sales and the day-to-day realities of investment property ownership, you can evaluate deals with a clearer view of risk, upkeep, and long-term fit.
If you are thinking about buying a rental in Colorado Springs and want grounded advice on property type, neighborhood fit, and real-world investment considerations, schedule a free consultation with Shelley Welliver.
FAQs
What should you know about rent averages in Colorado Springs before buying a rental?
- You should know that rent averages vary widely by property type and neighborhood, so it is better to use same-type, same-area comps than one citywide figure.
What property types are most common for rentals in Colorado Springs?
- Colorado Springs housing stock is mostly detached single-family homes, with additional opportunities in townhomes, condos, duplexes, and small attached properties.
What makes older rental homes in Colorado Springs riskier to buy?
- The city’s median housing age is 1986, so older properties may need more attention to roofs, plumbing, heating, exterior upkeep, and reserve planning.
What local rules matter when buying a rental in Colorado Springs?
- You should review minimum housing standards, Colorado fair housing rules, security deposit requirements, and any lease habitability notice requirements that apply after January 1, 2025.
What should you check before buying a short-term rental in Colorado Springs?
- You should confirm permit rules, zoning compliance, owner-specific permit requirements, and whether the property has an ADU that could affect short-term rental eligibility.
Is Colorado Springs still a good place to buy a rental property?
- It can be, but success depends on buying the right property in the right area with conservative rent assumptions, strong due diligence, and a clear plan for maintenance and compliance.
