Best Places To Buy Rental Property In Colorado For 2025

If you’ve ever dreamed of owning rental property in a state with stunning mountain views, thriving cities, and a booming economy, Colorado should be at the top of your list. With a growing population, strong job market, and high demand for both long-term and short-term rentals, it’s no wonder investors are flocking to the Colorado rental property market to secure their next investment.

But where should you invest? While Colorado is home to several lucrative real estate markets, finding the best places to buy rental property in Colorado can make all the difference in maximizing rental income, appreciation, and long-term profitability.

Some areas cater to short-term vacation rentals with high Airbnb demand, while others provide steady cash flow from long-term tenants. Whether you're looking for affordability, rental demand, or strong appreciation potential, we’ll go over everything you need to know

Here’s what we’ll cover:

• Why Colorado Is One of The Best Places To Buy Rental Property
• Top 15 Best Places To Buy Rental Property In Colorado
• The Best Places To Buy Rental Property In Colorado: FAQ

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Read Also: How To Buy A Rental Property With No Money

Why Colorado Is One of The Best Places To Buy Rental Property

Colorado isn’t just a place for outdoor enthusiasts—it’s a goldmine for real estate investors looking to maximize returns in a high-demand market. From the booming job market to the high rental demand, the state is packed with opportunities for those ready to dive into rental property investing. With a growing population, strong tourism industry, and diverse investment options, it’s no surprise that investors are eyeing the Colorado rental property market for both long-term and short-term rental opportunities.

Whether you’re interested in buy-and-hold properties, vacation rentals, or multifamily units, knowing the best places to buy rental property in Colorado can help you make the most of your investment. Here are the key reasons why Colorado continues to be one of the best states for real estate investing:

• Rapid Population Growth & Strong Rental Demand
• High Home Values with Strong Appreciation Potential
• Booming Job Market & Economic Growth

Rapid Population Growth & Strong Rental Demand

Colorado’s population is growing at an impressive rate, with an estimated 5.88 million residents in 2023, up from 5.84 million in 2022. Colorado's population is projected to reach 7.5 million by 2050, up from the current 5.8 million. This significant growth is expected to further intensify the demand for housing and rental properties across the state.

With such rapid population growth, the Colorado rental property market is thriving. The average rent in Colorado is $2,081 per month, which is higher than the national average. Cities like Denver, Colorado Springs, and Fort Collins are experiencing record-low vacancy rates and rising rental prices due to the influx of new residents.

Additionally, the average rent for single-family homes along Colorado's Front Range increased by 1.87% from Q2 2022 to Q2 2023, rising to $2,555 from $2,508. Quarter-over-quarter, there was a 2.98% increase from Q1 to Q2 2023. This data indicates a steady demand for rental properties in the region.

Read Also: How To Start A Rental Property Business: A Step-By-Step Guide

High Home Values with Strong Appreciation Potential

Colorado’s real estate market is known for its high home values and strong appreciation potential, making it a prime location for long-term rental property investments. The median home value in Colorado is $540,789, significantly higher than the national median of $355,328, according to Zillow. While this may seem like a high barrier to entry, appreciation trends suggest that property values will continue to rise, offering strong equity growth for investors. Over the past five years, Colorado’s home prices have appreciated by more than 35%, outpacing many other states.

For investors seeking the best places to buy rental property in Colorado, cities like Denver, Boulder, and Colorado Springs have seen some of the highest appreciation rates in the country. These areas continue to attract new residents due to thriving job markets and desirable lifestyles. The Colorado real estate investment market is further strengthened by high demand for both long-term rentals and short-term vacation properties. Many investors leverage buy-and-hold strategies to capitalize on appreciation while generating rental income. With limited housing supply and increasing demand, rental property owners in Colorado are well-positioned to see both cash flow and long-term gains, making it one of the most promising markets in the U.S.

Booming Job Market & Economic Growth

A strong economy is the backbone of any profitable real estate investment, and Colorado is thriving. The state boasted a GDP of over $437 billion in 2023, supported by booming industries such as technology, aerospace, renewable energy, and healthcare. With an unemployment rate of just 4.4%, Colorado’s job market continues to draw new residents who need places to live—making it one of the best places to buy rental property in Colorado.

Denver, Boulder, and Colorado Springs have become national hubs for tech startups and Fortune 500 companies alike, driving an influx of high-income professionals. Tech giants like Google, Amazon, and IBM have expanded operations in Colorado, adding thousands of jobs to the workforce. The aerospace industry is also flourishing, with Lockheed Martin and Ball Aerospace headquartered in the state, creating well-paying positions that attract long-term renters.

Colorado's economy isn't just limited to tech and aerospace—its outdoor recreation industry alone generates over $37 billion annually, supporting jobs in tourism, hospitality, and retail. The combination of a growing economy and diverse industries makes Colorado’s rental property market particularly resilient, even in economic downturns.

Moreover, Colorado’s minimum wage increased to $14.81 per hour in 2025, significantly higher than the federal minimum wage. This translates to stronger tenant affordability, reducing the risk of vacancies or missed rental payments for landlords.

With high job creation, strong salaries, and an ever-expanding population, Colorado real estate investment opportunities continue to offer long-term growth and stability. Whether you're investing in high-end rentals in Denver or more affordable single-family homes in up-and-coming markets like Pueblo or Greeley, the state's economy makes it a prime location for rental property investors.

Read Also: Rental Property Calculator: How To Calculate Your ROI

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Top 15 Best Places To Buy Rental Property In Colorado

Colorado’s rental market is booming, offering investors a mix of cash flow, appreciation, and long-term stability. From the urban energy of Denver to the scenic mountain towns and fast-growing suburban markets, there are plenty of opportunities for those looking to generate passive rental income. Whether you're interested in long-term rental properties, vacation homes, or short-term Airbnb investments, certain cities stand out as the best places to buy rental property in Colorado.

With a growing population, strong job market, and a thriving tourism industry, Colorado’s rental property market presents excellent opportunities for investors at all levels. Some markets offer affordable entry points with strong rental demand, while others provide higher-end investment opportunities with significant appreciation potential.

Below, we’ll break down the best Colorado cities for rental property investments, highlighting home values, rental demand, local economies, and investment strategies that work best in each location:

1. Denver: Strong economy, high rental demand, and increasing property values.
2. Colorado Springs: Military presence and a growing tech industry.
3. Boulder: A high-end market with strong appreciation and student housing opportunities.
4. Fort Collins: Consistent student rental demand.
5. Aurora: Affordable housing with high occupancy rates and strong job growth.
6. Lakewood: A desirable suburb with a steady rental market and strong ROI potential.
7. Pueblo: One of the most affordable markets in Colorado with solid cash flow.
8. Greeley: A growing economy and increasing rental demand.
9. Grand Junction: Lower home prices with high rental yields.
10. Loveland: A scenic market with rising property values and strong employment.
11. Thornton: A fast-growing suburb with affordable housing and steady rental demand.
12. Westminster: A prime location between Denver and Boulder with solid appreciation.
13. Castle Rock: A booming area with upscale rental properties.
14. Durango: A prime vacation rental market with strong Airbnb investment potential.
15. Longmont: A growing city with job market stability and solid rental investments.

Denver, CO

As the largest city in the state, Denver is an undeniable hotspot for real estate investors. The city’s booming job market, fueled by industries like technology, aerospace, and finance, attracts a steady influx of new residents looking for housing. With its diverse neighborhoods offering everything from urban apartments to suburban single-family homes, investors can find rental properties that cater to a broad range of tenants. Demand remains high due to a growing population, making it one of the best places to buy rental property in Colorado. Additionally, Denver’s strong appreciation trends allow for long-term wealth building, while short-term rentals perform exceptionally well in tourist-friendly areas. Whether investing in long-term rentals or short-term Airbnb properties, Denver remains a competitive and lucrative market for rental property owners.

Colorado Springs, CO

Located just south of Denver, Colorado Springs stands out as one of the best cities in Colorado for rental income properties due to its affordability and strong tenant demand. The presence of multiple military bases, including the U.S. Air Force Academy and Fort Carson, ensures a consistent need for rental housing. Additionally, the city’s growing tech sector is attracting professionals who may not be ready to buy, further driving demand for rental properties. Investors can find opportunities in single-family homes, multifamily properties, and even short-term rentals catering to visiting military personnel and tourists exploring Pikes Peak and Garden of the Gods. With steady home appreciation and a lower cost of entry compared to Denver, Colorado Springs is an ideal location for buy-and-hold real estate investors looking for long-term stability and passive income.

Boulder, CO

For investors looking at high-end properties with long-term appreciation potential, Boulder is a top contender. Home to the University of Colorado, the city has a built-in demand for student housing, making it one of the best areas in Colorado to buy investment property. Additionally, Boulder’s reputation as a tech and innovation hub continues to attract high-earning professionals who can afford premium rental prices. Though the cost of entry is higher than in many other Colorado cities, the return on investment is bolstered by consistently rising home values and rental demand. Investors can find success in both long-term rentals and furnished properties catering to visiting academics, professionals, and outdoor enthusiasts drawn to Boulder’s picturesque surroundings. Given its limited housing inventory and strong economy, Boulder remains an attractive market for investors focused on appreciation and high rental yields.

Fort Collina, CO

With Colorado State University at its core, Fort Collins is an investor’s dream for student rentals and long-term leasing opportunities. The city's population continues to grow, driven by students, young professionals, and families drawn to its quality of life and expanding job market. This makes it one of the best places in Colorado for passive real estate income, as landlords rarely struggle to find tenants. While home prices have risen in recent years, rental demand has kept pace, ensuring investors can generate steady cash flow. The city’s strong employment rate and economic growth further support a stable rental market, making Fort Collins an excellent place for both new and seasoned investors. Whether renting to students or professionals, landlords in Fort Collins can expect solid returns on well-located properties.

Aurora, CO

Investors priced out of Denver often turn to Aurora, a rapidly growing suburb with a strong rental market. As one of the best places to buy rental property in Colorado, Aurora benefits from its proximity to Denver while offering more affordable home prices. The city’s increasing population and job market expansion—particularly in healthcare and aviation—support steady rental demand. Additionally, Aurora’s diverse neighborhoods provide opportunities for various rental strategies, from single-family homes for long-term tenants to multifamily units that generate strong cash flow. The city’s continued development and infrastructure improvements make it a promising market for appreciation as well. Investors looking for strong occupancy rates and steady rental income without the high entry costs of Denver should strongly consider Aurora as a top investment destination.

Lakewood, CO

As a thriving suburb just west of Denver, Lakewood offers rental property investors a strong combination of affordability, high demand, and appreciation potential. The city is a magnet for renters who work in Denver but seek more space and lower costs, making it one of the best places to buy rental property in Colorado. With diverse housing options, from single-family homes to apartment complexes, investors can capitalize on the city’s growing population and steady job market. Additionally, Lakewood's proximity to outdoor recreation spots like Red Rocks Amphitheater attracts short-term rental opportunities, further boosting its appeal. Whether investing in long-term or vacation rentals, landlords can expect consistent demand and strong cash flow potential.

Pueblo, CO

For investors looking for low-cost entry points and solid cash flow, Pueblo is one of the best areas in Colorado to buy investment property. With home prices significantly lower than the state average, landlords can achieve higher rental yields and faster ROI. The city’s growing healthcare, manufacturing, and education sectors provide a stable employment base, ensuring consistent demand for rental properties. Additionally, Pueblo’s revitalized downtown and cultural attractions are increasing its appeal to both residents and visitors. Investors can capitalize on long-term rentals or explore short-term opportunities catering to tourists and seasonal workers. Given its affordability and potential for high returns, Pueblo is a great choice for investors prioritizing cash flow over appreciation.

Greeley, CO

Located in northern Colorado, Greeley has emerged as one of the best places in Colorado for passive real estate income due to its strong job market and affordable home prices. The city benefits from its proximity to Fort Collins while maintaining a lower cost of living, attracting a steady stream of renters. Greeley’s economy is driven by the energy, agriculture, and education sectors, ensuring stable employment opportunities. Investors can find success with single-family homes and duplexes, both of which cater to the city’s working-class population. With low vacancy rates and growing rental demand, Greeley provides consistent cash flow for long-term real estate investors.

Grand Junction, CO

For investors looking for affordability and strong rental yields, Grand Junction is one of the most profitable rental markets in Colorado. The city’s economy is heavily supported by healthcare, tourism, and energy industries, ensuring a steady demand for rental housing. Home prices in Grand Junction remain relatively low compared to other parts of Colorado, allowing investors to secure properties with strong cash flow potential. The city’s access to outdoor recreation, including nearby national parks and ski resorts, also makes it attractive for short-term rental investments. With a growing population and a revitalized downtown, Grand Junction is a great option for investors looking for high rental income with lower upfront costs.

Loveland, CO

Nestled between Fort Collins and Longmont, Loveland offers investors a mix of affordability, strong rental demand, and long-term appreciation potential. As one of the best places to buy rental property in Colorado, Loveland’s lower home prices compared to nearby cities make it an attractive entry point for real estate investors. The city has a thriving arts scene, proximity to Rocky Mountain National Park, and a growing tech and healthcare industry, all of which contribute to an increasing population of renters. Investors can capitalize on single-family homes and small multifamily properties, particularly those catering to young professionals and families.

Thornton, CO

Located just north of Denver, Thornton is one of the best places to buy rental property in Colorado for investors looking to capitalize on strong population growth and increasing rental demand. With its affordability compared to Denver, Thornton attracts families, young professionals, and commuters who work in the city but prefer suburban living. The area’s strong infrastructure, retail hubs, and recreational spaces make it a desirable place to live, ensuring stable rental income for landlords. Single-family homes and townhouses tend to perform best here, offering steady appreciation and reliable cash flow.

Westminster, CO

Strategically positioned between Denver and Boulder, Westminster offers investors the best of both worlds—urban accessibility with suburban appeal. As one of the best areas in Colorado to buy investment property, Westminster has consistently shown strong appreciation trends and a low rental vacancy rate. The city’s economy is thriving, with major employers in tech, healthcare, and government ensuring a steady influx of renters. Investors can find excellent opportunities in single-family homes and small apartment buildings, particularly in areas close to transit hubs and commercial centers. With its growing economy and increasing property values, Westminster is a smart choice for long-term investors.

Castle Rock, CO

Situated between Denver and Colorado Springs, Castle Rock is a rapidly growing city known for its strong job market, excellent schools, and high quality of life. As one of the best cities in Colorado for buy-and-hold real estate investing, Castle Rock’s rental demand remains strong, particularly among professionals and families seeking suburban living with easy access to major employment centers. The city’s high-end rental market makes it a great place for investors looking to own upscale properties with premium rent potential. Single-family homes and luxury townhouses perform exceptionally well in Castle Rock, providing both steady cash flow and appreciation.

Durango, CO

For investors interested in short-term rentals and vacation properties, Durango stands out as one of the most profitable rental markets in Colorado. This mountain town is a major outdoor recreation destination, drawing tourists year-round for skiing, hiking, and historic attractions. The demand for vacation rentals in Durango is high, making it an excellent market for Airbnb and other short-term rental platforms. Investors who purchase condos, cabins, or single-family homes near downtown or close to major resorts can enjoy high occupancy rates and premium rental prices. With a strong tourism-driven economy and a limited housing supply, Durango presents lucrative opportunities for investors seeking strong rental income.

Longmont, CO

With a booming tech industry and an influx of high-income residents, Longmont is quickly becoming one of the best areas in Colorado to buy investment property. The city benefits from its close proximity to Boulder while offering more affordable housing options. Longmont’s growing economy, fueled by startups and large employers like Seagate and Google, has led to rising property values and increasing rental demand. Investors can find opportunities in single-family homes and high-end apartments, which are in high demand among professionals and remote workers. Strong appreciation trends make Longmont an excellent choice for long-term investors looking to build equity.

The Best Places To Buy Rental Property In Colorado: FAQ

If you’re wondering where to invest in real estate, Colorado’s rental property market offers exciting opportunities for both short-term and long-term investors. From booming metropolitan areas to scenic mountain towns, the state provides diverse investment options with strong appreciation potential. Below, we answer some of the most common questions about finding the best places to buy rental property in Colorado, helping you make informed investment decisions.

What are the best cities to buy rental property in Colorado?

The best places to buy rental property in Colorado include Denver, Colorado Springs, Aurora, Fort Collins, and Boulder, thanks to their strong job markets, population growth, and rental demand. However, smaller cities like Greeley, Pueblo, and Durango also offer excellent investment potential with lower property prices and high rental yields.

Is Colorado a good state for rental property investment?

Yes, Colorado is a strong rental market due to its fast-growing population, high home appreciation rates, and demand for rental housing. Investors can benefit from both long-term rentals in major cities and lucrative short-term rental opportunities in mountain resort areas like Aspen and Breckenridge.

Where can I find affordable rental property investments in Colorado?

For investors looking for affordability, cities like Pueblo, Greeley, and Grand Junction provide lower home prices than Denver or Boulder. These areas still have strong rental demand, making them some of the best areas in Colorado to buy investment property with great cash flow potential.

What types of rental properties perform best in Colorado?

Single-family homes and condos perform well in urban areas like Denver and Colorado Springs, where demand for long-term rentals is high. Short-term vacation rentals thrive in resort towns like Breckenridge and Durango, making Colorado one of the best states for Airbnb investment properties.

What is the average rental yield in Colorado?

Rental yields vary by location, but cities like Colorado Springs and Pueblo often provide higher returns than pricier markets like Boulder or Denver. In general, investors can expect rental yields between 5-8% in many Colorado rental property markets.

Are short-term rentals profitable in Colorado?

Yes, short-term rentals in Colorado can be highly profitable, especially in tourism-driven areas such as Aspen, Vail, and Estes Park. High demand from vacationers allows investors to charge premium rates, making these locations some of the best places in Colorado for Airbnb investment.

What should I consider before investing in Colorado rental property?

Before investing, consider factors like property taxes, local demand, appreciation trends, and rental regulations in your target area. Colorado’s landlord-friendly policies and growing job market make it a prime state for real estate investment.

Which Colorado cities have the strongest appreciation rates?

Denver, Boulder, and Fort Collins have consistently seen strong home price appreciation, making them some of the best cities in Colorado for real estate appreciation. With continued population growth, these cities are expected to remain valuable long-term investments.

What are the tax benefits of owning rental property in Colorado?

Colorado offers tax advantages like property depreciation deductions, mortgage interest deductions, and no state-level estate tax. These benefits make investing in the Colorado rental property market more attractive for long-term wealth building.

How do I finance an investment property in Colorado?

Financing options include conventional mortgages, FHA loans (for multi-unit properties you live in), and DSCR loans for cash-flowing properties. Many investors also use hard money loans or private lending to fund rental property purchases.

Final Thoughts On The Best Places To Buy Rental Property In Colorado

Colorado’s thriving economy, growing population, and diverse real estate market make it a prime destination for property investors. Whether you’re drawn to the urban appeal of Denver or the short-term rental potential of mountain towns, the best places to buy rental property in Colorado offer lucrative opportunities. With strong appreciation trends and high rental demand, investing here could be your key to long-term wealth and financial freedom in the Centennial State.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.