The Platinum Group, REALTORS®Weldon HobbsColorado Springs | REALTOR®
Veteran | USAFA
Investing & Rentals

Is a Colorado Springs home a good long-term rental?

ByWeldon HobbsTeam Hobbs RealtyPublished Last reviewed

Short answer: It can be, when the numbers work for the specific home you buy. Colorado Springs has a steady base of renters, which I believe comes from the consistent military presence across several installations and the aerospace industry. But margins are often tight, so it comes down to the full monthly cost (mortgage, taxes, metro district, HOA, and insurance), the condition of the home's systems, your reserves, and your goals. Most people I work with use a buy-and-hold strategy. Colorado's landlord laws have also changed in recent years, so plan to run a rental like a business.

It's all about informed decisions

There's no single answer to whether a home makes a good rental. It depends on the home, the price, the costs that come with it, and what you want the property to do for you. Some owners want monthly cash flow. Others accept thin cash flow because they're building equity over time. Both can be reasonable, as long as you choose with your eyes open.

It's all about the numbers in this market. If you can accept tight margins, that's one way to do it. What matters is making a calculated decision rather than a hopeful one.

Run the numbers with every cost in them

Compare what the home would realistically rent for with the full cost of owning it:

Some investors also compare homes by rental yield: a year's rent divided by the purchase price. It's a quick way to compare properties, but it leaves out the costs above, so treat it as a first screen and let the full monthly numbers make the decision.

We don't publish rent figures on this site. Rents change too often, and a number on a web page shouldn't drive a decision this size. Get current estimates from several listing sources and at least one local property manager when you're actually evaluating a home.

Keep a reserve. I like to see about $15,000 set aside before someone rents out a home. That's a starting point, not a formula, but when you own a rental, something will happen. It's not if, it's when.

What makes one home a better rental than another

Age matters less than the systems. An older home can be a good rental if the major systems, such as the roof, furnace, water heater, and air conditioning, have been updated, or if you know how to update or maintain them. Newer homes theoretically tend to be less troublesome, once you get through their early growing pains.

Know what you're buying. A thorough inspection is how you learn the age and condition of those systems before you commit.

Buy for your likely renter. Picture the renter you'd want and choose a home that fits them: the layout, the yard, the commute, and the monthly rent it would need to cover its costs. Being close to the military installations can widen your pool of renters, weighed against what those renters will need from the home.

Buy-and-hold versus buying the deal

Most people I work with use a buy-and-hold strategy. For military buyers especially, timing is the hard part. You're on a deadline, and waiting around for a great deal is the exception, not the norm. It's not impossible, just difficult.

A true investor makes most of their money on the buy side, up front. That works when you have the luxury of time and the cash to move quickly, and can offer the things a seller is looking for. Most buyers who also need a place to live don't have that flexibility, which is why buy-and-hold is more common.

VA loan assumptions can be the best deals. Taking over a seller's VA loan at a lower rate can make the numbers much better. But you usually have to bring cash to cover the gap between the loan balance and the price, and it's worth analyzing what return you're getting on that money. See assuming a VA loan in Colorado Springs.

Cash flow versus equity

Kristen and I rented out homes throughout our military careers. We once bought a home with only about $60 a month in positive cash flow. The cash flow wasn't great, but it was an equity play: we built equity over time, then sold it and used a 1031 exchange to move that equity into another investment property. That's our experience, not a promise; results depend on the home, the market, and how you run it.

A 1031 exchange lets you defer tax on the gain from selling investment real estate when you reinvest in another property, under strict IRS rules and deadlines. Talk with a CPA and a qualified intermediary before you sell if you might use one.

What's specific to Colorado Springs

Renter demand. In my experience, rental demand here has been relatively stable. I believe that comes from the consistent military presence across several installations, including Fort Carson, Peterson and Schriever Space Force Bases, Cheyenne Mountain Space Force Station, and the Air Force Academy, along with the aerospace industry. That's my observation, not a guarantee for any particular home.

Colorado landlord law has changed. If you haven't been a landlord in Colorado recently, the rules are different now:

  • Ending a tenancy requires a reason. Under a 2024 law (HB24-1098), once a tenant has lived in the home for at least 12 months, you generally can't end the tenancy or decline to renew without a cause the law allows. Allowed no-fault reasons include moving yourself or a family member into the home and taking it off the market to sell, and they generally require at least 90 days' written notice. The state's official notice form allows 45 days when the landlord or the landlord's spouse is on active military duty and is moving in.
  • Security deposits have new rules. A 2025 law (HB25-1249) changed how deposits are paid and returned, effective in 2026. Use current Colorado forms or a property manager who keeps up with the changes.
  • Other limits apply to pet deposits and pet rent, late fees, and application and screening fees, and landlords must keep the home habitable.

This is a summary, not legal advice. A Colorado landlord-tenant attorney or an experienced property manager can tell you exactly what applies to your lease.

If you're military and keeping your current home. See whether to sell or rent your home when you PCS, buying for a possible return as a Guardian, and keeping a home as a rental and using your VA benefit again.

Taxes to plan for

Rental income is reported on your tax return, and you can generally deduct expenses and depreciate a residential rental over time, as described in IRS Publication 527. Selling a home that was a rental brings its own rules, including depreciation recapture and limits on the capital gains exclusion for a former residence. A CPA can show you how it applies to you before you buy, not after.

A simple way to decide

  • If the full monthly cost is covered by a realistic rent with room to spare, and you have reserves, a Colorado Springs rental can work well as a long-term hold.
  • If the margin is tight, decide whether you're comfortable with an equity play and can cover the gap from savings if something breaks.
  • If the home's major systems are old and you don't know how to maintain them, price in replacements or keep looking.
  • If a VA assumption is available, analyze the return on the cash you'd bring to cover the gap.
  • If you don't want to be a landlord, that's a completely valid answer. See whether to rent or buy.

What could change the answer

  • Interest rates and prices, which change the mortgage side of the math.
  • Rents and vacancy, which change the income side.
  • Insurance, property taxes, and metro district levies, which can rise.
  • Colorado landlord-tenant law, which changed several times from 2024 to 2026 and may change again.
  • Your goals, whether that's cash flow, equity, or a home to return to someday.

When to talk with a professional

A lender can show you the full payment and what you'd qualify for. A local property manager can give you a current rent estimate and explain management costs. A CPA can explain rental income, depreciation, and what happens when you sell, including a 1031 exchange. A Colorado landlord-tenant attorney can answer questions about leases, notices, and evictions. A home inspector can tell you the condition of the systems before you buy.

If you're weighing whether a specific Colorado Springs home would work as a rental, let's run the numbers together.

About the author

Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.

Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon

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