Cheapest Neighborhoods in Denver: 6 Budget-Friendly Areas for 2025

You can find cheap Denver neighborhoods in areas like Federal Heights, Indian Creek, Virginia Village, Washington Virginia Vale, East Colfax, and University Park, where rents run up to 32% below the city average.

The city’s rental market has cooled in 2025 after years of steep increases, giving renters more leverage than they’ve had in a decade. During the first quarter alone, roughly 20,000 new units were delivered, which added about 5% more supply and pushed vacancy rates to multiyear highs. That surge has eased price pressure and opened up opportunities in neighborhoods that once felt out of reach.

But this renter-friendly moment may not last forever. Analysts at MMG Real Estate expect the wave of new construction to taper off, with 2% to 3% annual rent growth likely returning by early 2026. For now, however, Denver renters can take advantage of higher vacancy, concessions, and overlooked neighborhoods that offer significant savings.

This Apartment List guide breaks down the cheapest neighborhoods in Denver, with our latest data, commute details, and cost of living highlights. You’ll also find renter hacks, budgeting tips, and FAQs to help you stretch your housing budget.

What Is Denver’s Rent Like?

The overall average rent for Denver is $2,223 a month, but that number can be further broken down by unit type.

Our latest Apartment List rent report shows that the average rent for a one-bedroom apartment is $1,966, keeping the city above the national one-bedroom average of $1,778. Here’s a quick look at average rents by unit size in Denver for 2025:

• Studio: $1,654.
• One bedroom: $1,966.
• Two bedrooms: $2,660.
• Three or more bedrooms: $3,419.

Whether you’re looking for a compact studio near Downtown or extra space in a suburban-style apartment, Denver’s shifting market makes 2025 a strategic time to sign a lease.

Why Is Denver So Popular?

Denver continues to attract new residents for its jobs, Colorado lifestyle, and outdoor amenities. That steady population growth puts pressure on housing demand. Even with thousands of new apartments delivered in 2025, the city isn’t building fast enough in its most desirable central neighborhoods. The result is that, long term, the apartments that do exist in those areas are snapped up quickly.

High mortgage rates are also keeping many renters from buying homes, extending their time in the rental market and adding to demand. Research from the Common Sense Institute reveals that the hours of work required to afford a mortgage in the Denver metro nearly doubled in the past decade, from 50 to 97 hours per month, indicating just how many renters are priced out of buying.

At the same time, Denver’s appeal as a lifestyle city continues to grow. The Mile High City consistently ranks highly among the top places to live for access to the outdoors, culture, and jobs, which means renters continue to compete for space.

Who Benefits from Budget Neighborhoods in Denver?

Affordable neighborhoods in Denver aren’t just about lower prices; they offer real value for specific renter groups. Recent graduates looking for starter apartments, service industry workers wanting to stay close to jobs, remote professionals who prioritize space, and retirees seeking manageable costs all benefit from Denver’s cheaper areas.

The biggest wins? Lower monthly rent, more space, and a stronger community feel compared to pricier hot spots like LoDo or Capitol Hill. Many of these affordable Denver neighborhoods also offer manageable commutes, with access to Downtown in 45 minutes or less by Regional Transportation District (RTD) or car. That makes them ideal for renters who want to balance budget, comfort, and convenience.

Colorado Rent Check-In

Even with this cooling, Denver remains one of the priciest rental markets in Colorado. Statewide, average rents hover around $2,220, while Denver’s citywide average is slightly higher at $2,223.

According to Apartment List data, Boulder remains the most expensive market in the state at an overall average rental price of $2,608 per month, while cities like Colorado Springs offer more moderate prices at a city average of $1,727 per month.

The 2025 supply boom has given Denver renters a rare window of affordability. Compared to nearby suburbs where vacancy is stabilizing faster, Denver proper now offers opportunities to negotiate rent in ways that weren’t possible just a few years ago.

Safety, Schools, and Transit Filters

We didn’t just look at price when choosing Denver’s cheapest neighborhoods. To make sure affordability comes with livability, we applied extra filters that matter to renters.

• Safety: We only included neighborhoods with violent crime rates at or below the citywide average. That ensures renters aren’t trading cost savings for risk.
• Schools: Areas with elementary schools rated at least six out of 10 on GreatSchools made the cut, since school quality drives long-term stability and family-friendliness.
• Transit and commutes: All featured neighborhoods offer commutes of 45 minutes or less to Downtown Denver by car, RTD bus, or light rail. That’s a baseline to keep renters connected without being stuck with unmanageable travel times.
• Lease-up perks: In Denver’s 2025 market, many new apartment buildings are in their lease-up phase, where property managers push to fill units quickly. Renters here often see one month free, waived fees, or discounted parking—deals we factored into affordability.

These filters ensure that “cheap” doesn’t mean cutting corners on quality of life. Each neighborhood highlighted here offers a balance of price, safety, schools, and everyday convenience.

Our Affordability Criteria

To qualify as cheap, a neighborhood needed to have an average one-bedroom rent at or below Denver’s citywide one-bedroom average of $1,966. We used Apartment List rent data and 12-month rolling averages to smooth out monthly swings.

But we didn’t stop at price. We also applied livability filters to make sure affordability doesn’t mean compromise:

• Safety: Only neighborhoods with violent crime rates at or below the Denver average.
• Commute: 45 minutes or less to Downtown Denver by car or RTD transit.
• Schools and amenities: Favorable GreatSchools ratings and access to parks, dining, and grocery options.
• Lease-up perks: Areas with new construction often offer move-in deals, boosting affordability.

This way, “cheap” neighborhoods also meet baseline standards for livability and convenience.

Cheapest Neighborhoods in Denver (2025)

Federal Heights

• Average rent (2025): $1,334 (32.1% below city average).
• Commute to Downtown: 20 to 25 minutes by car; 45 minutes by RTD bus.
• Amenities: Suburban-style apartments, family parks, affordable shopping, quick access to Interstate 25.
• Best for: Renters prioritizing the lowest possible rent with suburban quiet and mountain views will love Federal Heights.

Washington Virginia Vale

• Average rent (2025): $1,385 (29.6% below city average).
• Commute to Downtown: 26 minutes by car; 30 minutes by RTD bus.
• Amenities: Proximity to Cherry Creek Trail, strong community identity, mix of apartments and single-family homes.
• Best for: Renters seeking affordability near outdoor recreation and family-friendly amenities will find themselves at home in Washington Virginia Vale.

University (Park)

• Average rent (2025): $1,392 (29.2% below city average).
• Commute to Downtown: 22 minutes by car; 45 minutes by RTD bus.
• Amenities: Immediate proximity to the University of Denver, quiet residential streets, easy transit connections.
• Best for: Students and professionals settle into University Park who want affordable housing near the university with Downtown access.

East Colfax

• Average rent (2025): $1,442 (26.7% below city average).
• Commute to Downtown: 22 minutes by car; 28 minutes by RTD bus.
• Amenities: Eclectic dining, nightlife, historic architecture, diverse housing stock.
• Best for: Students and budget-minded renters who want culture without Downtown pricing should look toward East Colfax.

Virginia Village

• Average one-bedroom rent (2025): $1,451 (26.2% below city average).
• Commute to Downtown: 24 minutes by car; 45 minutes by RTD bus.
• Amenities: Quiet suburban vibe, tree-lined streets, close to grocery stores and dining.
• Best for: Families and renters seeking affordability with a residential feel look for a place to call home in Virginia Village.

Indian Creek

• Average rent (2025): $1,523 (22.5% below city average).
• Commute to Downtown: 30 minutes by car; 43 minutes by RTD bus.
• Amenities: Greenbelt trails, Cherry Creek State Park, residential atmosphere.
• Best for: Outdoor enthusiasts and renters seeking affordability within Denver city limits should consider Indian Creek.

Cheapest Denver Neighborhoods Comparison

Here’s how the cheapest areas stack up against the citywide average rent of $1,966:

Honorable Mentions

Not every neighborhood fits neatly under our strict affordability cutoff, but a few areas come close and are worth keeping on your radar if you want affordability with additional lifestyle perks.

Capitol Hill

• Average one-bedroom rent (2025): $1,542 (just above cutoff).
• Commute to Downtown: 7 minutes by car; 13 minutes by RTD bus.
• Amenities: Historic architecture, diverse dining and nightlife, walkable streets.
• Best for: Renters who want culture and convenience while staying under Downtown’s price tag.

West Colfax

• Average one-bedroom rent (2025): $1,612 (slightly above cutoff).
• Commute to Downtown: 12 minutes by car; 32 minutes by RTD bus
• Amenities: Redeveloping corridor, brewery scene, lake access, light rail stations.
• Best for: Renters seeking an up-and-coming neighborhood with transit convenience and lower costs than LoDo or RiNo.

Smart Search Tactics on Apartment List

Finding a deal isn’t just about luck. On Apartment List, you can:

• Set commute filters to ensure you’re within 45 minutes of Downtown.
• Stack amenities filters (e.g., pet-friendly, in-unit laundry, gated parking) to avoid listings with hidden trade-offs.
• Use price alerts to be the first to know when a unit within your budget hits the market.

These tools help renters cut through Denver’s fast-moving rental market and secure deals quickly.

Budgeting Hacks Beyond Rent

Keeping your finances healthy in Denver goes beyond the monthly rent. Try these strategies:

• Split Wi-Fi and streaming costs with roommates or neighbors.
• Opt for energy-efficient lighting and appliances to cut utility bills.
• Cook at home instead of eating out; although Denver’s restaurant scene is phenomenal, it’s also pricey.
• Share rides or use RTD passes to reduce transportation costs.
• Consider splitting a two-bedroom unit with a roommate to save $600 or more each monthly.

Find a Cheap Apartment in Denver

Denver’s rental market in 2025 finally favors renters. With thousands of new units boosting vacancy, landlords offering concessions, and neighborhoods like Federal Heights and Indian Creek offering savings of up to 32% below the city average, now is the time to secure a lease. While long-term growth is expected to return by 2026, today’s renters can take advantage of a rare affordability window in one of the fastest-growing cities in the United States.

Ready to find an apartment in Denver? Take the personalized Apartment List quiz. With us, you’ll spend five minutes and save 50 hours searching.

FAQs About Denver’s Cheapest Neighborhoods

What’s the cheapest neighborhood in Denver in 2025?

Federal Heights, where one-bedroom apartments average $1,334—about 32% below the citywide one-bedroom average of $1,966.

Why are rents softening right now?

Oversupply is the top reason why rents are softening. About 20,000 new units came online in Denver in early 2025 and pushed vacancy to multiyear highs.

Will rents rise again soon in Denver?

Yes, rents are expected to rise in Denver soon. Analysts expect modest 2% to 3% rent growth to return by early 2026 as supply slows.

How much can I save compared to Downtown?

Renters in Federal Heights or Indian Creek can save up to $600 per month on one-bedroom apartments compared to those in LoDo or Capitol Hill.

Are these Denver neighborhoods safe?

Yes, these Denver neighborhoods are safe relative to the city overall. All included neighborhoods have crime rates at or below Denver’s average.

When’s the best time to move for a deal?

It’s best to shop for a deal between November and February, when vacancies peak and landlords are more willing to offer concessions.

Can I live car-free in these cheap Denver neighborhoods?

Yes, you can live car-free in these cheap Denver neighborhoods, though a car helps. Indian Creek and East Denver have reliable RTD routes, while West Denver and North Central are bike-friendly and close to the light rail.