Updated 2026 · Based on median market data for Colorado Springs, CO
The median monthly rent in Colorado Springs, CO is $1,690, translating to $20,280 in annual gross rental income per unit. The rent-to-price ratio is 0.38% — well below the 1% rule, making pure cash flow investing challenging at median prices and requiring investors to target below-median purchases or value-add strategies. For context, a 0.38% rent-to-price ratio means that for every $100,000 invested in property, you collect approximately $376/mo in gross rent. The gross rent multiplier of 22.2x means it takes 22.2 years of gross rent to equal the purchase price — a high ratio that reflects price appreciation outpacing rent growth.
Renters in Colorado Springs spend approximately 28% of the local median household income ($72,400) on rent. This is within the healthy 25-30% range, indicating rent is affordable relative to local incomes. There may be room for moderate rent increases, especially for updated or well-located units. The 30% affordability ceiling suggests maximum supportable rent of approximately $1,810/mo — that is $120/mo above current median rent.
The vacancy rate in Colorado Springs is 4.5%. This is extremely tight — expect strong tenant demand, quick lease-ups, and leverage to set favorable lease terms. In markets this tight, landlords often see multiple applications per listing and can be highly selective on credit scores and income verification. You can also justify annual rent increases of 3-5% without significant pushback. Population growth of 1.8% annually is actively adding rental demand, creating a tailwind for landlords.
Colorado Springs's GRM (price divided by annual rent) is 22.2x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow, which adds risk if the appreciation thesis does not materialize. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x. To beat Colorado Springs's median GRM, target properties where you can achieve rents above $1,690 through renovations, better marketing, or targeting underserved tenant segments — or buy at a discount to the $450,000 median price. Every point lower on GRM translates to roughly 0.5-0.8% improvement in your cap rate.
At the median rent of $1,690/mo, a single-family rental in Colorado Springs generates approximately $20,280 in gross annual income. After accounting for 4.5% vacancy ($913 lost), property taxes of $2,205, insurance (~$1,800), and maintenance (~$1,800), the estimated NOI is $13,562 per year, or $1,130/mo. Adding an 8% management fee ($1,622/yr) reduces investor cash flow further. Before debt service, you are looking at approximately $11,940/yr in landlord net income. Whether this is attractive depends on your total capital invested — at a $90,000 down payment, the unlevered yield on equity from NOI alone is 15.1%.
Rent growth in Colorado Springs is driven by the interplay of population growth (1.8%), income growth, and housing supply constraints. With population expanding at 1.8% annually, demand for rental housing is growing faster than most markets can build, which supports above-average rent increases. Projected rent growth of approximately 4% annually would push the current $1,690/mo to $1,901 in 3 years and $2,056 in 5 years. The affordability headroom of $120/mo between current rents and the 30% income threshold offers some room for increases, though landlords should be strategic about timing and magnitude.
The high local income of $72,400 combined with elevated home prices ($450,000 median) creates a tenant base of working professionals — often young professionals, dual-income couples, and corporate relocations who choose to rent for flexibility. These tenants typically have strong credit, stable employment, and expect well-maintained properties with modern finishes. They are less price-sensitive but more demanding on property condition and responsiveness. The larger population base of 491,482 gives you a deeper tenant pool to draw from, reducing re-leasing time.
Colorado Springs is a large enough market to support multiple professional property management companies, giving you negotiating leverage on fees. Expect to pay 8-10% of collected rent for full-service management, with leasing fees of 50-100% of one month's rent for new tenant placement. At $1,690/mo rent, that is $152/mo in management fees. Self-management makes sense if you are local, have fewer than 5 units, and the rent level justifies your time — at $1,690/mo per unit, the income per unit is high enough that professional management is clearly affordable and preserves your time for deal sourcing.
Colorado Springs vs Colorado state average and national average across key investment metrics. Colorado Springs's cap rate is below both benchmarks — deal sourcing is critical here.