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, plenty of employment opportunities, and a lot of potential renters, 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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Why Colorado Is One of The Best Places To Buy Rental Property

Colorado might be famous for its mountains and outdoor lifestyle, but it’s also become one of the most promising states for real estate investors. With a strong economy, steady population growth, and year-round rental demand, the state offers serious upside for those looking to get into buy-and-hold or short-term rentals. Whether you're drawn to Denver’s urban energy or the seasonal appeal of resort towns, Colorado presents a unique mix of stability and opportunity that’s tough to ignore.

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 has been steadily climbing, hitting around 5.88 million in 2023, up from 5.84 million just a year earlier. And it’s not slowing down anytime soon. Projections show the state could grow to 7.5 million people by 2050. That kind of long-term growth points to one thing for real estate investors: rising demand for both housing and rentals across Colorado.

With such rapid population growth, the Colorado rental property market is thriving. The average rent in Colorado is $2,200 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. Colorado’s tight housing supply and growing demand have created a strong environment for rental property owners. Investors here aren’t just seeing solid monthly cash flow—they’re also benefiting from long-term appreciation. It’s a combination that makes Colorado one of the most attractive real estate markets in the country right now.

Booming Job Market & Economic Growth

A healthy economy is key to real estate success, and Colorado has plenty going for it. In 2023, the state’s GDP topped $437 billion, fueled by high-growth industries like tech, aerospace, clean energy, and healthcare. With unemployment sitting at just 4.4%, people keep moving in for jobs, and they all need places to live. That steady demand is a big reason why many consider it one of the best places to buy rental property in Colorado.

Cities like Denver, Boulder, and Colorado Springs have transformed into major hotspots for both startups and big-name companies. With tech giants like Google, Amazon, and IBM growing their presence in the state, thousands of high-paying jobs have followed. Colorado’s aerospace sector is also booming, thanks to heavy hitters like Lockheed Martin and Ball Aerospace, creating a strong pool of skilled workers who often prefer to rent. For investors, that means stable, long-term demand for quality rental housing.

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 convergence of a booming economy and eclectic industries makes Colorado’s rental property market particularly resilient, even in economic downturns.

In 2025, Colorado’s minimum wage rose to $14.81 an hour, well above the federal rate. That boost means more tenants can afford rent, which helps reduce vacancy risks and late payments for landlords. For investors, it’s another layer of stability in an already strong rental market.

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 on a roll, giving investors a solid mix of monthly cash flow, long-term growth, and reliable stability. Whether you’re eyeing the buzz of Denver, the charm of mountain towns, or the momentum in fast-growing suburbs, there’s no shortage of opportunity. From traditional rentals to vacation homes and Airbnb-friendly spots, a few key cities consistently rise to the top 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 Colorado’s largest city, Denver continues to be a magnet for real estate investors—and for good reason. Its fast-growing job market, led by industries like tech, aerospace, and finance, draws new residents year-round who need places to live. The city’s mix of urban condos, suburban homes, and vibrant neighborhoods gives investors plenty of rental options for all types of tenants. With steady population growth and strong appreciation, Denver stands out as one of the best places to buy rental property in Colorado. It’s also a top performer for short-term rentals, thanks to its tourism appeal and walkable hotspots. Whether you're focused on long-term tenants or Airbnb guests, Denver offers both income and long-term upside.

Colorado Springs, CO

Just south of Denver, Colorado Springs has become a favorite for rental property investors—and it’s easy to see why. The city offers a lower cost of entry than Denver, yet demand for rentals remains high thanks to a strong military presence and a growing tech workforce. Bases like Fort Carson and the U.S. Air Force Academy create steady housing needs, while the expanding job market brings in professionals who prefer to rent. Investors have solid options here, from single-family homes to multifamily units and even short-term rentals near attractions like Pikes Peak and Garden of the Gods. With consistent appreciation and reliable tenant demand, Colorado Springs is a smart choice for long-term buy-and-hold strategies.

Boulder, CO

If you're aiming for high-end rental properties with serious appreciation upside, Boulder should be on your radar. Home to the University of Colorado, the city offers steady demand for student rentals—plus it draws top-tier professionals thanks to its booming tech and startup scene. While buying into Boulder isn’t cheap, the city’s rising property values and premium rental rates help balance the higher entry cost. Investors often find success here with long-term rentals and furnished units tailored to academics, business travelers, and outdoor enthusiasts. With limited housing supply and a strong local economy, Boulder continues to be one of the best places in Colorado to invest in rental property, especially for those focused on long-term growth.

Fort Collins, CO

With Colorado State University at the heart of town, Fort Collins offers a reliable rental base that keeps investors coming back. The city attracts a steady stream of students, young professionals, and growing families—all drawn to its vibrant lifestyle and strong job market. That consistent demand makes Fort Collins one of the best places in Colorado for generating passive rental income. Even as home prices have climbed, rents have followed suit, allowing investors to maintain solid cash flow. Whether you're renting to college students or career-driven tenants, well-located properties here rarely sit vacant. Combine that with a healthy economy and high quality of life, and you’ve got a market that works for both first-time and seasoned landlords.

Aurora, CO

For investors priced out of Denver, Aurora has become a go-to alternative—and for good reason. This fast-growing suburb offers more affordable entry points while still benefiting from its close proximity to the city. With job growth in sectors like healthcare and aviation, Aurora continues to attract new residents and maintain strong rental demand. Its mix of single-family homes and multifamily properties opens the door to a variety of investment strategies. Aurora checks the boxes whether you're aiming for long-term tenants or properties with solid cash flow. Thanks to ongoing development and infrastructure upgrades, it’s also a market with real appreciation potential, making it one of the best places to buy rental property in Colorado.

Lakewood, CO

Located just west of Denver, Lakewood has quietly become a favorite among rental property investors. It offers that rare mix of affordability, strong tenant demand, and room for appreciation. Many renters who work in the city are drawn to Lakewood for more space and lower living costs—making it one of the best places to buy rental property in Colorado. Investors have plenty of options here, from single-family homes to multifamily units, and the area’s steady job growth only adds to its long-term appeal. Plus, being near spots like Red Rocks makes it a great play for short-term rentals too. Whether you’re going long-term or aiming for vacation guests, Lakewood delivers consistent demand and solid income potential.

Pueblo, CO

Pueblo’s one of those places that doesn’t always get talked about, but smart investors are paying attention. Homes here are a lot more affordable than what you'd find in other parts of Colorado, which means you can get in for less and still pull in solid rent. The city’s got a stable job base—healthcare, manufacturing, and education keep things moving—and downtown’s been getting a facelift that’s bringing in new energy. Whether you’re in it for steady cash flow or testing out short-term rentals, Pueblo’s low prices and solid demand make it a real contender.

Greeley, CO

Greeley might not be the first city that comes to mind, but it’s quietly become a solid spot for rental property investors in Colorado. Home prices are still reasonable, especially compared to nearby Fort Collins, and the lower cost of living keeps renters coming. The local economy leans on steady industries like energy, agriculture, and education, which means job stability and tenant stability. Single-family homes and duplexes do well here, particularly with working-class families and professionals. Vacancy rates stay low, rents are climbing, and the numbers tend to work out well for investors looking for consistent income.

Grand Junction, CO

If you’re after strong rental returns without the big-city price tag, Grand Junction is worth a close look. Home prices are still relatively affordable here, especially compared to Denver or Boulder, which means better cash flow right out of the gate. The local economy is backed by steady industries like healthcare, tourism, and energy, so there’s consistent demand for rental housing. It’s also a hotspot for outdoor lovers, with national parks, hiking trails, and ski resorts close by, making it a great candidate for both long-term and short-term rentals. With more people moving in and a downtown area that’s picking up steam, Grand Junction offers a lot of value for investors looking to stretch their dollar.

Loveland, CO

Loveland sits in a sweet spot between Fort Collins and Longmont, and it’s quietly become a strong pick for rental property investors. Home prices here are still more reasonable than in nearby cities, which makes it a smart entry point if you’re looking to get into Colorado real estate. The city’s got a lot going for it—proximity to Rocky Mountain National Park, a vibrant local arts scene, and growing job opportunities in tech and healthcare. That combo keeps renters coming, especially young professionals and families. If you're looking at single-family homes or small multifamily units, Loveland offers solid long-term upside without the steep buy-in.

Thornton, CO

Just north of Denver, Thornton has become a go-to spot for investors who want to tap into Colorado’s growth without paying Denver prices. Its relative affordability draws in families, commuters, and young professionals looking for more space while staying close to the city. With a solid mix of retail, parks, and schools, it’s the kind of suburb renters love, which means steady income for landlords. Single-family homes and townhomes tend to do especially well here, offering a balance of cash flow and long-term appreciation. If you’re eyeing the best places to buy rental property in Colorado, Thornton definitely deserves a spot on your list.

Westminster, CO

Tucked between Denver and Boulder, Westminster gives investors a rare mix of city access and suburban comfort. It’s one of the best areas in Colorado to buy investment property, thanks to its rising home values and consistently low vacancy rates. With big employers in tech, healthcare, and government nearby, there’s no shortage of renters looking for well-located housing. Single-family homes and small multifamily properties close to transit and shopping centers tend to perform especially well. If you’re in it for long-term growth and reliable rental income, Westminster checks a lot of boxes.

Castle Rock, CO

Castle Rock has become one of Colorado’s fastest-growing cities, and it’s catching the eye of real estate investors. Known for its strong job market, great schools, and overall quality of life, it’s especially appealing to families and professionals looking for a suburban feel with easy access to big-city jobs. Rental demand here stays high, particularly for upscale homes. Investors focused on buy-and-hold strategies will find strong potential in single-family properties and luxury townhomes, with solid cash flow and long-term appreciation to match. If you're targeting high-end rentals, Castle Rock is a market worth watching.

Durango, CO

If you're looking to break into Colorado’s short-term rental market, Durango is a hidden gem. This mountain town is a year-round destination for tourists who come for the skiing, hiking, and Old West charm. That steady stream of visitors keeps demand high for vacation rentals, especially near downtown and close to the resorts. Whether it’s a condo, cabin, or single-family home, properties here tend to rent out at premium rates. With limited housing inventory and a tourism-driven economy, Durango offers strong potential for high returns, making it one of the most profitable rental markets in Colorado for short-term investors.

Longmont, CO

Longmont has been flying under the radar, but that’s starting to change—especially for real estate investors. With its growing tech scene and steady flow of high-earning professionals, the city is quickly becoming one of the best areas in Colorado to buy investment property. It’s just a short drive from Boulder, but home prices are still more reasonable, which makes it attractive for both renters and buyers. Companies like Seagate and Google have helped fuel job growth, and rental demand has followed. Single-family homes and upscale apartments are especially popular with remote workers and professionals, and appreciation trends in Longmont suggest strong long-term potential for investors building equity.

The Best Places To Buy Rental Property In Colorado: FAQ

Thinking about where to invest in real estate? Colorado’s rental market offers something for everyone—whether you’re focused on steady long-term income or cashing in on short-term stays. From fast-growing cities to picturesque mountain towns, the state delivers a mix of affordability, appreciation, and demand. Below, we’ve answered some of the most common questions about the best places to buy rental property in Colorado to help you invest with confidence.

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 jumping into a deal, it’s important to look at things like property taxes, rental demand, price growth, and local regulations in the area you’re targeting. Colorado stands out thanks to its strong job market and generally landlord-friendly environment, both of which make it an appealing place to invest in real estate.

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 has become a top pick for real estate investors with a booming economy, steady population growth, and a mix of urban and mountain markets. Whether you’re eyeing rentals in Denver or cashing in on vacation stays up in the Rockies, the state offers plenty of ways to build income and long-term value. If you’re serious about growing your portfolio, the best places to buy rental property in Colorado could offer the returns you’ve been looking for.

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.