Renting in a Metropolitan Area: How to Stay Smart and Stable in a City Like Denver

High -rise apartments in black and white.

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The Urban Rental Reality

Living in cities in the U.S. like Denver, Austin, or Seattle offers flexibility, opportunities, enjoyment and fun, and convenience —but often at a high cost. In 2025, the average rent (across all property sizes) in Denver hovers around $1,800/month in April 2025, with some neighborhoods exceeding $2,200 (Zumper, as of July 2025). For many millennials and working professionals, this means over 30% of their income is going toward housing, far above the recommended thresholds for financial stability. As of July 2025, Denver is considered the 29th most expensive large city to rent in the U.S. ('Denver, CO Rental Market Trends' from Apartmentlist.com, accurate as of Jul. 2025).

The cost of living isn’t just high—it’s climbing.

As Kyle Harris put it in a recent article on Denverite.com, "Monthly costs have increased by about $300 since 2019 and by more than $800 since 2013 — far outpacing increases in income" (Harris, 2025). For people earning between $70,000–$120,000 per year, renting in the city can feel like a constant squeeze: high enough to limit flexibility, not quite high enough to easily buy. So how do you win in this environment?

Apply the 10-20-70 Rule (Realistically)

This is where intentionality matters. The LSH approach to financial stability reframes your spending using the 10-20-70 method:

• 10% to Savings

  • This is your non-negotiable safety net. Even a small buffer protects your future. Start with what you can—$50/month is better than zero. Build up to 10%.

    
    

• 20% to Debt Payoff or Investments

  • Here’s where it gets real: most renters in expensive cities like Denver can't fully pay down debt and invest aggressively. The debt is dragging down the ability to invest since there's little extra left.

  • But you don’t have to choose one or the other.

    ✅ The smarter approach? Do both—strategically.

    Always contribute enough to your 401(k) to get the employer match. That’s free money and an instant return, often better than any debt payoff.

  • Your money in your paycheck can be paying off debts, whilst the money in your 401(k) is still growing.

  • Once you've paid off large debts like credit cards and car loans, then there'll be much more cash to invest.

    
    

• 70% for Lifestyle

  • This includes rent, groceries, transit, insurance, dining, and everything else. In high-cost cities, rent alone can eat up 40–50% of your income. That makes being intentional with the remaining 20–30% even more important.

Example

If your monthly take-home income is $6,079 (based on $100,000/year in Colorado after taxes):

• 10% - Save: $608/month

• 20% - Pay off debt: $1,216/month e.g., credit cards and car loans.

• 70% - Bills, needs, and wants: $4,255/month on all living expenses (including housing), utilities, and petrol.

Can’t do the full 20% yet? That’s okay. Start small. Just start paying yourself first and paying your debts down.

LSH Rule of Thumb:"Always invest enough to get your 401(k) match. And always save something—no matter how small."

Smart Renting Habits in Expensive Cities

Living in a high-cost city doesn’t mean you have to abandon financial progress. It just requires sharper awareness and better habits. Here are five smart renting strategies:

1. Negotiate or Lock in Longer Leases

   1. Some landlords offer better rates on 15–18-month leases. Ask. The answer might save you hundreds. The landlord wants stable income over the long-term and good tenants.

2. Location Arbitrage

   1. Live slightly outside the core (e.g., Wheat Ridge, Englewood, or Lakewood vs. LoDo or RiNo).

   2. Commute times may be longer, but the rent could be $300–$500/month less. Parking is lot less of a hassle too.

3. Roommates Aren’t Just for College

   1. Sharing rent and utilities can cut your monthly costs in half. This frees up your 10% and 20% categories to accelerate debt or wealth-building. Of course the landlord should know about this and should be allowable in the contract e.g., renting one room in a house.

   2. It's ok to do it for a while. I have done it when I was younger too.

4. Automate 10-20-70 Transfers

   1. Before rent is due, have your 10% savings and 20% debt funds moved automatically—even if small. You might not afford the full 20% yet. That’s okay. Start with a fraction. The automation builds identity: "I’m someone who pays myself first."

5. Track Every Dollar for 30 Days

   1. Awareness changes behavior. One month of honest tracking can reveal habits you didn’t know you had—and help you reroute funds.

From Surviving to Thriving in the City

Many renters feel like they’re just getting by, with little left after bills. But renters who stack smart habits like budgeting, saving first, tracking expenses, and negotiating rent terms build a solid foundation. They’re not just surviving—they’re setting up to own.

You may not buy a home next year. But you’ll be ready when the opportunity strikes—because you practiced the habits that matter.

To your success.