Long-Term Rentals · Market playbook

Buying Rental Properties in Colorado Springs, CO

Buying rentals in Colorado Springs is a 4.55% gross yield play at a $451k median entry — $1,712/mo rent gross before expenses. The math has to clear before the property does.

DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026

Workable 52/100

Colorado Springs is a workable straight-rental market — neither bonanza nor minefield.

TL;DR — data signals

→ Gross yield 4.55% — at national baseline
→ Rent $1,712/mo vs. national $1,930 — rent-weak
→ Cash flow expectation at 25% down / 7.5%: flat to slightly negative
→ Appreciation: softening, cash flow must carry the deal

Long-term rentals in Colorado Springs sit at the intersection of two numbers: typical home value $451,202 and median rent $1,712/mo. That's a 4.55% gross yield — at the national baseline. Cash flow is workable but disciplined underwriting is non-negotiable.

Run the cash-flow math. Assume 20-25% down on a 30-year conventional rental loan at 7.5%, plus taxes + insurance + 8% property management + 8% vacancy/maintenance reserve + 8% capex reserve. At those inputs Colorado Springs rentals will likely cash flow flat-to-slightly-negative on standard 25% down financing. The math requires either more cash down (35-50%) or an explicit appreciation thesis.

Rent demand context: Colorado Springs rents ($1,712) run 11% below the national median ($1,930). Rent is the constraint — operational discipline matters more than acquisition skill here.

Appreciation thesis: Colorado Springs home values are -2.1% YoY. That's a softening market. Cash flow has to do all the work; don't underwrite expecting price growth to bail out a marginal deal.

Net: Colorado Springs is a workable rental market with tight margins — disciplined underwriting and operational excellence are the difference between profit and break-even.

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Colorado Springs at a glance