According to the National Low Income Housing Coalition (NLIHC), a household needs an annual income of $75,797 to afford a modest two-bedroom rental home at the U.S. Department of Housing and Urban Development's (HUD) Fair Market Rent (FMR).
That translates to an hourly wage of about $36.44 for someone working full-time, 40 hours a week, year-round.
For many Coloradans, especially those in high-cost communities along the Front Range and mountain towns, that figure underscores a growing affordability challenge. While the statewide estimate reflects HUD's Fair Market Rent, actual rents in cities like Denver, Boulder, Fort Collins, and Colorado Springs can often exceed those benchmark rates.
Housing affordability has remained one of Colorado's biggest challenges as demand continues to outpace supply. Even though rent growth has cooled compared to the rapid increases seen over the past few years, many renters are still spending well above the recommended 30% of their income on housing.
The National Low Income Housing Coalition's annual housing report highlights the widening gap between wages and rental costs across the country. Many essential workers—including those in education, healthcare support, retail, hospitality, and public service—earn less than the hourly wage needed to comfortably afford a two-bedroom rental.
For families considering a move to Colorado, housing costs should be one of the first factors to evaluate. While the state offers exceptional outdoor recreation, a strong economy, and a high quality of life, rental prices remain a significant part of the cost of living equation.
As Colorado continues to attract new residents and employers, increasing the supply of affordable housing remains a key priority for communities across the state.
Source: National Low Income Housing Coalition (Out of Reach Report) and HUD Fair Market Rent data.