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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 11 cities in Colorado using 2026 census, rent, and salary data. Pueblo comes o…
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market.
Pueblo (index 77) and Centennial (index 120) sit 43 points apart on the cost index — proof that Colorado is far from monolithic in affordability.
The 30% rule — spending no more than 30% of gross income on housing — is the most widely cited benchmark for affordability. On a $40K salary, 0 cities (0%) meet this threshold. That's a tough market. We ran the numbers on 11 cities in Colorado using 2026 census, rent, and salary data. Pueblo comes out on top — here's the full ranking and analysis.
It lines up with what you'd expect.
A closer look at Pueblo: the cost index of 77 breaks down to a Housing index of 77 (strongest category) and a Healthcare index of 95 (weakest). Median rent is $1,316/month — 31% below the national median — while household income sits at $55,305, meaning locals spend about 29% of income on rent. That's within the recommended 30% threshold, though it doesn't leave much room. Honestly, this is the kind of city that makes you wonder why more people aren't paying attention. The numbers are right there — rent that doesn't eat your paycheck, costs that actually leave room for a life. And yet it barely shows up in the national conversation about affordable places to live. Maybe that's a good thing. Maybe that's what keeps it affordable.
The trade-off becomes clearer when you add healthcare into the mix. State context matters: Colorado's 11 cities average a 103 cost index with $1,765/month median rent and $90,112 household income. Outdoor lifestyle with a rising price tag. Stay with us through the data sources — knowing where these numbers come from changes how you trust them.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
#1 Ranked: Pueblo — cost index 77, rent $1,316/mo, income $55,305
0 of 11 cities keep rent under 30% of $40K
0 of 11 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Pueblo | $1,316 | 39% | 77 | Details |
| 2 | Greeley | $1,442 | 43% | 84 | Details |
| 3 | Colorado Springs | $1,667 | 50% | 97 | Details |
| 4 | Aurora | $1,689 | 51% | 99 | Details |
| 5 | Lakewood | $1,733 | 52% | 101 | Details |
| 6 | Westminster | $1,788 | 54% | 104 | Details |
| 7 | Denver | $1,818 | 55% | 106 | Details |
| 8 | Thornton | $1,888 | 57% | 110 | Details |
| 9 | Fort Collins | $1,970 | 59% | 115 | Details |
| 10 | Arvada | $2,053 | 62% | 120 | Details |
| 11 | Centennial | $2,056 | 62% | 120 | Details |
111,077 residents · Colorado
Why Pueblo ranks #1: the numbers tell a clear story. At 77 on the cost index, residents save roughly 34% less than the typical American. Rent sits at $1,316/month — for better or worse — while the median household pulls in $55,305/year. The Housing category is particularly strong at 77, though Healthcare (95) lags behind. Home prices average $283,780 — $183,590 below the national median (that's pre-tax, of course).
112,609 residents · Colorado
Here's Greeley by the numbers — and there's a lot to like (and a little to watch). Cost index: 84. Rent: $1,442/month. Income: $68,650/year. Home price: $418,757. Population: 112,609. The strongest category is Housing at 84; the most expensive is Healthcare at 97. Translate that rent to annual numbers, and residents are saving renters $5,436 per year vs. the national median. That's a difference you notice every single month.
488,664 residents · Colorado
Colorado Springs earns its position at #3 through a combination that's hard to replicate. The 97 cost index sits 14 points below the national baseline, and the $83,198 median income means purchasing power here is genuinely above average. Homes list at $446,132 — $21,238 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 97, while Healthcare trails at 99.
177,563 residents · Colorado
Aurora earns its position at #4 through a combination that's hard to replicate. The 99 cost index sits 12 points below the national baseline, and the $84,320 — we had to double-check this one — median income means purchasing power here is genuinely above average. Homes list at $458,953 — $8,417 below the national median — a genuine ownership opportunity. On the cost side, Housing leads the way at 99, while Healthcare trails at 100.
155,961 residents · Colorado
A closer look at Lakewood: the cost index of 101 breaks down to a Healthcare index of 100 (strongest category) and a Housing index of 101 (weakest). Median rent is $1,733/month — 9% below the national median — while household income sits at $85,789, meaning locals spend about 24% of income on rent. That's a healthy margin by any standard.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Pueblo | 4.4% | 7.81% | 0.49% | $30,612 |
2Greeley | 4.4% | 7.81% | 0.49% | $30,612 |
3Colorado Springs | 4.4% | 7.81% | 0.49% | $30,612 |
4Aurora | 4.4% | 7.81% | 0.49% | $30,612 |
5Lakewood | 4.4% | 7.81% | 0.49% | $30,612 |
6Westminster | 4.4% | 7.81% | 0.49% | $30,612 |
7Denver | 4.4% | 7.81% | 0.49% | $30,612 |
8Thornton | 4.4% | 7.81% | 0.49% | $30,612 |
9Fort Collins | 4.4% | 7.81% | 0.49% | $30,612 |
10Arvada | 4.4% | 7.81% | 0.49% | $30,612 |
We model what a $40K salary looks like after taxes in each city: federal income tax (marginal brackets), FICA (7.65%), and state income tax. Then we compare take-home against local rent and costs to determine where the salary stretches furthest. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Pueblo ranks #1 in Colorado for this analysis with a cost index of 77 and median income of $55,305.
Yes. On a $40K salary in Pueblo, rent would consume about 39% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
Pueblo (ranked #1) has a cost index of 77 and rent of $1,316/mo, while Centennial (ranked #11) has a cost index of 120 and rent of $2,056/mo — a 43-point difference in cost of living.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Pueblo is $1,316/month as of 2026, based on Zillow's Observed Rent Index. This is $579 below the national median of $1,895/month.
After federal taxes, FICA (7.65%), and 4.4% state income tax, estimated take-home on $40K in Pueblo is approximately $30,612/year ($2,551/month). After median rent of $1,316/month, you'd have roughly $14,820/year for all other expenses.
The median home price in Pueblo is $283,780, which is 5.1× the local median income. Most median-income households would stretch to buy at this ratio. The national median home price is $467,370.
Colorado has a 4.4% state income tax rate. Combined state and local sales tax averages 7.81%, and the effective property tax rate is 0.49%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.