7 Cheapest Places to Live in Colorado (Under $250K Homes)

Looking for the cheapest place to live in Colorado in 2025?

This guide reveals the top 7 affordable cities where home prices dip below $250K—and where your cost of living stays just as low.

From hidden gems like Lamar and Alamosa to mountain towns that won’t break the bank, we ranked each location using real-time data: home values, rents, and reAlpha-exclusive savings that can put up to $15,000 back in your pocket.

Whether you're retiring, relocating, or just escaping Denver prices, you’re about to find where affordability meets opportunity in Colorado.

You can still buy a home in Colorado under $250K—if you know where to look.

• Lower home prices (some under $200K!)

• Reduced property taxes and utility costs

• Proximity to nature and mountains

• Access to rural loan programs (USDA/FHA)

• Limited nightlife or entertainment

• Longer commutes for jobs

• Fewer large hospitals or specialty services

Cheap cities in Colorado trade glamor for long-term affordability—and for many, that's a win.

We crunched the numbers—home prices, rent, and overall cost of living—to bring you 7 cities where you can actually live well in Colorado without draining your wallet. Whether you’re after a family-friendly town, a job hub, or just cheap housing in Colorado, these picks deliver.

North of Denver, job-ready, and still affordable

Greeley’s roots may be agricultural, but its economy today is booming—education, healthcare, and manufacturing are all growing fast. With a median home price around $415,000 and rents 18% below national average, it’s one of the most affordable cities in Colorado with economic momentum.

It’s also one of the few places where low cost of living meets real opportunity. Add in events, parks, and cultural festivals, and you’ve got a city that’s as fun as it is affordable.

Wine country meets outdoor adventure

Don’t sleep on Grand Junction. With home prices around $400,000 and proximity to the Colorado National Monument, it’s one of the best-kept secrets for affordable Colorado mountain towns.

The town thrives on healthcare, education, and tourism—and it's even got a growing arts scene. If you want cheap real estate in Colorado and quality of life, this is it.

🔗 Also check out most affordable places to live in Nevada for similar desert vibes.

Riverfront charm, veteran-friendly, and seriously cheap

Once known for its steel mills, Pueblo has quietly become one of the cheapest cities to live in Colorado—without compromising lifestyle. Median home prices sit at $228,500, and rent is just $1,400.

With healthcare, renewables, and education as its core industries, Pueblo is a great fit for families, veterans, or first-time buyers who need room to breathe.

🔗 Want more cities like Pueblo? See safest places to live in Arkansas

Suburban comfort, urban access

Lakewood feels like Denver’s calmer cousin. Yes, median home prices are higher ($536,000), but you're getting city convenience without city chaos.

Plus, many neighborhoods here still offer affordable housing near Denver compared to Boulder or Aurora. Add parks, family-friendly schools, and a strong rental market—and Lakewood stays in the affordability race.

🔗 Compare with affordable cities near NYC for urban-suburb blends.

Mountain views, low utilities, and military base stability

Colorado Springs brings together natural beauty, job opportunity, and affordability. With home prices around $450,000, it might not seem “cheap,” but utility costs are 8% below average, and housing is still more accessible than most Colorado metros.

It’s also among the best cities to live in Colorado for families, thanks to parks, military benefits, and strong schools.

🔗 Considering retirement? Compare with affordable places to retire in Florida

Small-town feel, big-time savings

With a median home price of $170,000, Lamar is consistently ranked as the cheapest place to live in Colorado. It’s perfect for those on fixed incomes or looking for a low-stress, rural lifestyle.

While you won’t find high-rises or nightlife, you will find community warmth, low property taxes, and peace. For many, that’s the true luxury.

🔗 Looking for small-town living in warmer states? Explore affordable places to live in Georgia

College-town charm with long-term value

Yes, median home prices are around $545,000, but Fort Collins offers something most “cheap” cities can’t—stability, opportunity, and resale value.

Thanks to Colorado State University, a strong local job market, and outdoor access, Fort Collins remains a top pick for families, students, and remote workers alike. Plus, unemployment is just 3.7%, making it a smart long-term play.

🔗 Bonus: Compare with top cities to live in North Carolina

Love the mountains but not the Aspen price tag? These 3 towns are proof you don’t need a seven-figure paycheck to enjoy the Colorado mountain lifestyle.

Each one gives you access to hiking, rivers, and charm—without the sky-high costs of ski resorts. Whether you're retiring, relocating, or just want affordable mountain living, these towns deliver.

Gateway to the Black Canyon—with surprising affordability

Montrose sits just outside the Black Canyon of the Gunnison National Park, offering jaw-dropping views and home prices around $360,000.

What sets Montrose apart? The cost of living is 5% below the national average, and the city’s vibe is calm, close-knit, and outdoorsy—ideal for retirees or remote workers. Among all affordable mountain towns in Colorado, Montrose gives you both access and savings.

🔗 Like Montrose’s vibe? Compare it with affordable places to live in Oregon

Where art, river life, and savings collide

Salida is a gem. While home prices are slightly higher (~$440,000), property taxes remain low—and the city overdelivers on charm. You’ll find river sports, artist communities, and access to the Collegiate Peaks, making it perfect for creatives and outdoor junkies.

It’s often ranked among the best affordable places to live in Colorado for quality of life—especially if you value nature, low noise, and a strong local culture.

Royal Gorge views, family-friendly prices

Canon City blends small-town energy with iconic outdoor destinations like the Royal Gorge Bridge and Park. The average home price is around $325,000, making it one of the cheapest mountain towns to live in Colorado with year-round activities.

You’ll find trails, river rafting, and national monuments—plus a community that’s peaceful, affordable, and ideal for raising kids or enjoying retirement.

Find the Perfect Mortgage in Colorado with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved

If you're financing through assistance programs, understanding the mortgagee clause ensures your lender is protected.

Finding the right home in Colorado isn’t just about listings—it’s about strategy. Whether you're eyeing affordable cities like Pueblo or Lamar, or exploring cheap places to live near Denver, these 4 tips will help you move smart and avoid costly mistakes.

Before you fall in love with that view in Salida or a fixer-upper in Canon City, get clear on what you can actually afford. Lenders in Colorado weigh income, debt, and credit when pre-approving you for a mortgage.

Not all cheap is smart. Prioritize cities that combine low housing costs with livability, jobs, and growth—like Greeley, Pueblo, or Grand Junction.

These cities top our list of most affordable places to live in Colorado because they offer long-term value, not just low price tags.

The right real estate agent can unlock hidden gems in Colorado’s cheapest housing markets—from rural towns with USDA eligibility to mountain communities with overlooked value.

Look for agents who specialize in first-time buyers, fixed-income planning, or who understand the nuances of towns like Lamar, Alamosa, and Montrose.

Missing paperwork, outdated credit reports, or not knowing how to properly use a gift letter for down payment can tank your deal. Prep everything in advance and confirm what your lender (and underwriter) expects.

Want to know what’s tripping up most buyers? It’s not understanding conditional approval or assuming "cheap" means "easy."

🔗 Avoid this. Read our guide on conditional approval in home buying

You’ve just explored the cheapest places to live in Colorado—cities where you can buy a home under $250K, live near the Rockies, and stretch your income further.

Now it’s time to turn that knowledge into a smarter home purchase.

With reAlpha Realty + reAlpha Mortgage, you unlock more than affordability—you unlock rebates, speed, and power.

Bundle Your Purchase & Get Up to 75% Commission Back

• 25% back when you buy with reAlpha Realty
• 50% back when you also use reAlpha Mortgage
• 75% rebate when you add Title services

Whether you're buying in Lamar, Greeley, Pueblo, or Montrose—this combo lets you own more for less.

From fast mortgage approvals to zero-pressure closings, reAlpha is built to help you buy smarter, not harder.

Lamar, CO takes the crown. With a median home price of just $170,000 and a cost of living 13% below the national average, it’s one of the few cities where fixed incomes still stretch.

It’s especially ideal for retirees, remote workers, or those looking to downsize without giving up quality of life.

🔗 Want more budget cities like Lamar? Explore affordable places to live in Washington

Yes—but inventory is shrinking fast.

Cities like Pueblo, Lamar, and Alamosa still offer homes priced under $250,000. These towns also rank high for low property taxes and affordable living, making them perfect for first-time buyers, veterans, or those using FHA or USDA loans.

🔗 Need help with financing? Use reAlpha Mortgage to compare rates, pre-approve fast, and unlock better loan terms.

Top picks include:

• Montrose – $360K avg. home price, Black Canyon views
• Canon City – $325K avg., Royal Gorge access
• Salida – Higher price point, but low taxes and vibrant local life

All three offer affordable Colorado mountain living without the inflated costs of Aspen or Telluride.

Pueblo and Greeley are smart bets.

• Pueblo’s job market is growing in healthcare, renewables, and education
• Greeley is strong in manufacturing, logistics, and higher ed

Both cities offer homes well below state average with access to job hubs and regional transit.

🔗 Considering remote-friendly states too? Check affordable places in Georgia

Cities like Colorado Springs and Fort Collins offer the best blend:

• Great schools
• Lower utility costs
• Parks and safe neighborhoods
• Job access in tech, military, and education

While not the cheapest on the list, they provide long-term stability and value for growing households.

🔗 Want help comparing cities? Check our Rent vs Buy in Florida cost planning guide—it works across states.

Greeley, Pueblo, and Grand Junction top the list when balancing cost of living, job access, and quality of life.

Yes. With home prices near $400K and cost of living 5–7% below Boulder or Denver, it's a top pick for affordable mountain living.

For short-term stays, look at Canon City, Pueblo, or Montrose—affordable rentals, scenic views, and walkable town centers.

Absolutely. A map helps visualize proximity to Denver, job centers, and which cheap towns are truly rural vs commuter-friendly.

Find the Perfect Mortgage in Colorado with Be My Neighbor.

Compare options, calculate payments, and get expert guidance—all in one place.

Get Pre-approved