Invest In Apartment Buildings In Colorado Springs, CO

The Military And Health Care Fill Colorado Springs Apartments

Colorado Springs has 79,251 renter households, and 39.1% of the city's households rent (U.S. Census ACS 2020–2024). The Colorado share is 33.8%. Median gross rent in Colorado Springs is $1,648 a month, up 45.7% from $1,131 in the 2015–2019 survey, while median household income rose 31.1% to $84,818. Rent has outpaced pay by a wide margin, and 54.3% of renters spend 30% or more of their income on housing. Renter households grew 6.6% over five years, faster than the 5.0% population gain.

Defense is the anchor. Fort Carson counted 32,410 soldiers, civilians and contractors in February 2025, and Space Operations Command, based at Peterson Space Force Base, accounts for about 15,000 more, according to the Gazette. The U.S. Air Force Academy adds 10,482 cadets, service members and civilians. One change to watch: U.S. Space Command's headquarters was set in 2025 to leave Colorado Springs, taking roughly 1,000 jobs. Outside the bases, the Colorado Springs Chamber & EDC lists UCHealth's Southern Colorado region, Penrose-St. Francis, Children's Hospital Colorado, The Broadmoor and Amazon among the largest private employers.

Military families move often, so owners near the bases see regular turnover and a steady stream of new tenants. That demand is tied to federal decisions, though, as the Space Command move shows. For apartment syndications in Colorado Springs, the questions are how close a property sits to Fort Carson, Peterson or the Academy, and how much of its rent roll depends on any single base.

New Supply And Rents In Colorado Springs

Colorado Springs went through one of its busiest building stretches in recent memory. The Pikes Peak Regional Building Department permitted just over 14,000 apartments from 2019 to 2023, and 3,058 units opened in 2023 and 3,795 in 2024. Then permits fell to 838 in 2024, the fewest since 2015. Owners of new downtown buildings were offering up to two months free on longer leases in early 2025.

Rents are now finding a floor. The Colorado Housing and Finance Authority's survey put metro vacancy at 7.3% in the first quarter of 2026, with average rent of $1,389, down 2.2% from a year earlier but up 1.2% from the prior quarter. Rental Beast reported that 51.8% of listings offered a concession in the second quarter of 2026, down from 56.6% in the first, and CoStar reported in July 2026 that asking rents posted their biggest first-half gain in years as supply pressure eased.

The Census adds a longer view. The city has 49,038 homes in buildings with five or more units, 23.2% of its housing, and that count jumped 16.8% in five years. The Census rental vacancy rate is 3.8%. It covers all rentals, including houses, and it's a five-year average, so it runs well below the survey figure for large apartment communities. The Census median rent is also higher than the CHFA apartment average because it includes utilities and single-family rentals. The HUD fiscal 2027 fair market rent for a two-bedroom in the Colorado Springs metro is $1,621.

For a buyer, the drop in permits means fewer new buildings will compete for tenants from 2026 on. Concessions are still common, though, so we underwrite to net effective rent, not the asking rent on a listing.

Colorado Springs Submarkets We Watch

Vacancy across the city's submarkets ranged from 4.8% to 10.1% in the first quarter of 2026, according to the CHFA survey.

How Colorado Springs Ranks For Apartment Investors

Out of 28 Colorado cities in our data, Colorado Springs comes in 24th for median gross rent, 8th for renter share and 2nd for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. Compared with the 2015–2019 survey, Colorado Springs now has about 23,016 more residents, 4,907 more renter households and 7,053 more homes in buildings with 5 or more units. New homes in 5+ unit buildings outpaced the growth in renter households, so newer buildings are competing for tenants and older ones may need to offer more to keep them.

Colorado Springs And Nearby Markets Side By Side

Colorado Springs's median gross rent of $1,648 is below the Colorado median of $1,761, and its renter share is 39.1% compared with 33.8% statewide.

Can Tenants Afford Colorado Springs Rents?

The median rent in Colorado Springs works out to $19,776 a year, about 23.3% of the median household income of $84,818. Under the common 30% guideline, a household needs about $65,900 a year to cover that rent comfortably. That's a heavier load than the Colorado average of 22.1%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $517 a month ($6,204 a year), while median household income rose $20,121 a year. Rent has outpaced income, so we are careful about how much further a business plan pushes rents on renewal. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $1,621, is close to the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Colorado Springs Apartment Market Key Facts

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Colorado Springs, CO has 487,887 residents, up 5% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Colorado Springs, CO is $84,818, up 31.1% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Colorado Springs, CO is $1,648 a month, up 45.7% over five years (U.S. Census ACS 2020–2024).
• 39.1% of households in Colorado Springs, CO rent, about 79,251 renter households (U.S. Census ACS 2020–2024).
• 23.2% of homes in Colorado Springs, CO are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Colorado Springs, CO is 3.8%, and 54.3% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Colorado Springs, CO was built in 1986 (U.S. Census ACS 2020–2024).

What We Look For In A Colorado Springs Apartment Building

We look at buildings with 5 or more units in Colorado Springs, from small walk-ups to larger garden-style communities, in stabilized or value-add condition. We compare in-place rents with nearby buildings, inspect roofs, plumbing and HVAC, and ask whether better management or targeted renovation can close the gap with the market.

Property taxes are a big line item for any Colorado apartment building. We estimate the tax bill as it will be after the purchase, because a sale can trigger a reassessment in many places. Colorado has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Colorado reflect wildfire risk and hail and wind damage, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Questions To Ask About An Apartment Syndication In Colorado Springs

Before you invest in an apartment syndication in Colorado Springs, with us or anyone else, the local data points to a few questions worth asking.

• What vacancy does the plan assume? Rental vacancy in Colorado Springs is 3.8%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 45.7% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• How big is the repair reserve? The median home in Colorado Springs was built in 1986, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How will the building compete with new supply? Homes in 5+ unit buildings in Colorado Springs rose 16.8% over five years, so newer properties are part of the competition.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Colorado Springs Apartment Syndication Works

Two groups make an apartment syndication work. The sponsor, or general partner, handles the deal: finding the building, financing it and running the business plan. The limited partners are passive investors who contribute capital and share in the property's results under the offering's terms.

It's a long-term commitment. The property has to be refinanced or sold before most capital comes back, and the outcome isn't certain. Eligibility rules vary by offering, and most are limited to accredited investors. See investing with Skyline Capital for how we work with limited partners.

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