Best Neighborhoods for Rental Income in Colorado Springs
Colorado Springs is one of the fastest-growing cities in the U.S., making it a prime location for real estate investors. However, not all neighborhoods are created equal—each has unique opportunities and challenges. This guide explores the best neighborhoods for rental income, offering detailed breakdowns of tenant demographics, rental demand, appreciation potential, and insider tips to maximize your ROI.
1. Briargate: A Suburban Heaven for Families
Briargate is one of the most sought-after areas for families, thanks to its highly rated schools, spacious parks, and family-centric community. With an abundance of single-family homes, Briargate is an excellent option for long-term rental investments and buy-and-hold strategies. The area’s well-maintained homes and amenities make it attractive to both buyers and renters looking for stability and quality of life.
MEDIAN HOME PRICE $550,000
AVG RENTAL INCOME $2,800–$3,200/month
OCCUPANCY RATE Nearly 100% for family rentals
WHY IT’S PROFITABLE
Schools: Academy District 20 is a major draw for families, consistently ranking as one of Colorado’s best school districts.
Appreciation: Home values in Briargate grow steadily at 7–8% annually, ensuring long-term equity gains.
Family Stability: Tenants often stay long-term, minimizing turnover and vacancy costs.
PRO TIP: Focus on homes with 3–4 bedrooms, open floor plans, and proximity to parks or schools, as these features appeal most to family renters.
2. Downtown Colorado Springs: Urban Living with High Rental Demand
Downtown Colorado Springs is the cultural and economic heartbeat of the city, offering a unique blend of historical charm and modern convenience that appeals to young professionals, students, and retirees alike. The area has seen an influx of new businesses, breweries, restaurants, and cultural attractions, fueling demand for condos and apartments. This vibrant urban lifestyle presents investors with opportunities for both short-term rentals, such as Airbnbs, and long-term leases catering to the growing population of professionals and renters seeking convenience and walkability.
MEDIAN HOME PRICE $450,000
AVG RENTAL INCOME $1,800–$2,200/month
OCCUPANCY RATE 95%
WHY IT’S PROFITABLE
Revitalization Projects: Investments in the Olympic Museum and urban renewal initiatives have driven 10% annual appreciation in recent years.
Tenant Profile: Renters here value walkability, with easy access to restaurants, shops, and entertainment venues.
High Rental Turnover: While turnover is higher downtown, it allows landlords to adjust rental rates to market trends.
PRO TIP: Invest in duplexes or small apartment buildings to take advantage of high rental demand and diversify your income streams.
3. Old Colorado City: Historic Charm with AirBNB Potential
Old Colorado City combines historic charm with a vibrant cultural scene, making it an appealing choice for both buyers and renters seeking a unique living experience. Its quaint, walkable streets, eclectic shops, and historic homes attract families, young professionals, and vacationers alike. Investors can capitalize on opportunities to flip older homes with character or rent out charming properties to long-term tenants and short-term vacation renters looking to immerse themselves in the area’s rich history and convenient lifestyle.
MEDIAN HOME PRICE $400,000
AVG RENTAL INCOME $1,700–$2,000/month
OCCUPANCY RATE 90%
WHY IT’S PROFITABLE
Tourist Appeal: Galleries, boutiques, and historic landmarks make this area a hotspot for vacation rentals.
Short-Term Rentals: Old Colorado City is ideal for Airbnb properties, offering investors opportunities for higher nightly rates.
Affordable Entry Point: Compared to Downtown and The Broadmoor, properties are more affordable while still yielding strong returns.
PRO TIP: If investing in short-term rentals, ensure your property complies with zoning laws and HOA regulations.
4. The Broadmoor: Luxury Real Estate with Elite Appeal
For those interested in the high-end market, The Broadmoor is a neighborhood known for its luxury homes and proximity to the world-famous Broadmoor Hotel and Cheyenne Mountain. With stunning views, expansive properties, and access to high-end amenities like golf courses and fine dining, The Broadmoor attracts affluent buyers and renters. While the price points here may be higher, the returns can be substantial, especially for investors looking for long-term appreciation in luxury real estate.
MEDIAN HOME PRICE $1,200,000
AVG RENTAL INCOME $4,000–$6,000/month
OCCUPANCY RATE High for luxury rentals
WHY IT’S PROFITABLE
Military Demand: Close proximity to Peterson Space Force Base ensures a steady flow of tenants.
Future Growth: The area is experiencing new commercial developments, boosting its long-term potential.
Entry-Level Pricing: Lower property costs make it an accessible market for first-time investors.
PRO TIP: Focus on townhomes or newer single-family homes, which attract renters looking for affordability and modern features.
6. Northgate: Upscale Living with Long-Term Growth
Northgate is one of the fastest-growing neighborhoods in Colorado Springs, making it a top pick for investors who want to get in early on an up-and-coming area. Located near the Air Force Academy and home to several new residential developments, Northgate is becoming a hotspot for both military families and professionals looking for more space without sacrificing proximity to the city.
MEDIAN HOME PRICE $650,000
AVG RENTAL INCOME $3,000-$3,500/month
WHY IT’S PROFITABLE
Affluent Renters: High-income professionals dominate the rental market in this area.
Amenities: Golf courses, high-end shopping, and excellent schools make Northgate a top choice for families and executives.
Consistent Appreciation: Properties in Northgate appreciate at 8–9% annually, making it a strong long-term investment.
PRO TIP: Target homes with luxury finishes, as these appeal most to the area’s affluent renter base.
Additional Factors to Consider
MARKET TRENDS
Colorado Springs’ home values increased by 8.5% last year, with several neighborhoods exceeding this average and rental rates have risen by 5% annually, reflecting strong demand citywide.
AMENITIES
Proximity to schools, parks, shopping centers, and public transportation significantly enhances tenant appeal and property value.
REGULATIONS
Be mindful of HOA rules and city zoning laws, especially for short-term rentals like Airbnb or VRBO.
FAQs: Common Investor Questions
WHICH AREA OFFERS THE BEST ROI FOR FIRST-TIME INVESTORS?
Powers Corridor is an excellent choice for affordability and consistent rental demand.
IS THE BROADMOOR A GOOD OPTION FOR SHORT-TERM RENTALS?
No, The Broadmoor primarily caters to long-term, high-income tenants.
WHAT’S THE BEST NEIGHBORHOOD FOR LUXURY RENTALS?
Both The Broadmoor and Northgate are ideal for high-end, executive-style rentals.
Whether you’re interested in family-friendly Briargate or luxury living in The Broadmoor, I can help you find the perfect investment property. Contact me at melissa@myhoneybeehomes.com to start building your real estate portfolio today.
RESOURCES
Colorado Springs Development Projects
Colorado Springs real estate investment, Profitable neighborhoods in Colorado Springs, Top areas for investors in Colorado Springs, Colorado Springs housing market trends, Best neighborhoods for rental income in Colorado Springs
