When you say “Highlands,” which one do you mean? Around Denver, that name can point to two very different places. If you meant Highlands Ranch in 80126, that is a suburban Douglas County market. This guide focuses on Denver’s urban Highlands neighborhoods — LoHi, Highland, and West Highland — where investors consider walkability, vintage character, and proximity to downtown. You will walk away with local price and rent ranges, key rules, a quick yield example, and a practical checklist. Let’s dive in.
First, pinpoint your “Highlands”
There is frequent confusion between Denver’s Highlands (roughly ZIPs 80211 and 80212) and Highlands Ranch (ZIP 80126) in Douglas County. If your target is the suburban community of Highlands Ranch, you are looking at a different market with its own dynamics and regulations. For context on Highlands Ranch, see the neutral overview on Wikipedia.
This article covers Denver’s Highlands subareas — LoHi, Highland, and West Highland. For neighborhood boundaries and local context, the West Highland Neighborhood Association is a useful reference.
Snapshot: prices and rents in early 2026
Headlines change, so always confirm numbers right before you buy. As a starting point:
- Home values: Zillow’s ZHVI shows ZIP 80212 around $706,652 as of late January 2026. Nearby Highland and West Highland pockets generally track in the high 600s to low 700s depending on property type and location.
- Average rents: Different sources report different figures based on methodology. Recent snapshots placed 80212 around the low to mid $1,700s per month on average, with some sources reporting higher asking levels. Treat these as directional and verify with active listings.
Typical asking rents by unit size in Highlands vary by building age, finish level, and exact block:
- Studio or small 1-bed: about $1,500 to $2,100
- 1-bed in LoHi core: often $1,800 to $2,200
- 2-bed and townhomes: commonly $2,200 to $3,200
Methodologies differ between listed-rent averages and asking-rent indexes. Use a range, not a single point, and refresh comps before underwriting.
Why renters choose Highlands
Highlands attracts a broad mix of renters who value walkability, neighborhood character, and quick access to downtown. LoHi’s dining and retail core, classic streetscapes, and proximity to Union Station offer a strong location premium. Neutral, objective neighborhood context is available from the West Highland Neighborhood Association.
At the metro level, Denver saw heavy apartment deliveries in 2023 and 2024 that softened advertised rents and occupancy into early 2026. That means micro-location matters. Blocks with newer competing buildings may see more concessions, while quieter pockets with less new supply can hold steadier.
Regulations that shape returns
Understanding Denver’s rules is essential to your strategy and timeline.
Short-term rentals (STRs)
Denver limits most whole-home STRs to an owner’s primary residence and requires a license, taxes, and compliance with operational rules. Pure investor purchases in Highlands generally cannot operate a legal whole-home STR without converting to a lodging use, which involves stricter zoning and building standards. Review the city’s short-term rental FAQ before you model STR income.
Long-term rental licensing and inspections
Long-term rentals are permitted for investors, but Denver requires a residential rental license and third-party inspections before issuance. Fees vary by unit count, and the city has been enforcing compliance. Plan time and budget for this step using the official residential rental property licensing page.
Zoning, overlays, and historic review
Several Highlands pockets have historic districts and active design review. Exterior changes, conversions, or new units can trigger added steps. Always pull a property’s zone district and consult the Denver Zoning Code to confirm what is allowed on that lot.
ADUs: a compelling value-add path
Denver expanded ADU eligibility citywide in December 2024, opening the door for many single-family or duplex lots to add a small, legally permitted long-term rental. Design, utilities, and permitting still apply, and you must verify the parcel specifics. Start with the city’s Citywide ADUs resource.
Strategy: long-term vs short-term
Short-term rentals can deliver higher nightly revenue on prime blocks, but Denver’s primary-residence rule blocks most investor-owned whole homes from operating as STRs. STR operations also carry higher ongoing fees and overhead.
Long-term leases offer steadier cash flow and a clearer compliance path in Highlands, though returns depend on local vacancy and competing supply. Budget realistic management costs either way:
- Long-term management: about 8 to 12 percent of collected rent on average, plus tenant placement and renewal fees. See industry context from LeaseRunner.
- Short-term management: often 15 to 35 percent of gross revenue for full service. National benchmarks are outlined by Vacasa.
Quick math: a Highlands back-of-envelope
Use this example to frame expectations, then update figures with live comps before you act.
- Purchase price proxy: $706,652 (Zillow ZHVI for 80212, Jan 2026)
- Asking rent proxy: $2,411 per month (Zillow ZORI for 80212)
- Annual gross rent: $2,411 x 12 = $28,932
- Gross yield: $28,932 ÷ $706,652 ≈ 4.1 percent
- GRM: $706,652 ÷ $28,932 ≈ 24.4
From there, layer in operating assumptions to estimate net:
- Vacancy: at 8 percent, collected rent ≈ $28,932 x 0.92 = $26,618
- Management: at 10 percent of collected, net rent after management ≈ $26,618 x 0.90 = $23,956
- Then subtract property taxes, insurance, HOA if any, maintenance, reserves, and compliance costs. Your final net yield will be lower than the gross figure and depends on the specific property and block.
Tip: Rebuild your pro forma using current list prices and active rent comps. The sources referenced here include Zillow’s ZHVI/ZORI and listing-based rent snapshots. Before committing, refresh with the latest comps and your lender’s terms.
How Corken-style management helps
In Highlands, many renters expect responsive communication, quality presentation, and quick maintenance. A boutique, full-service approach can protect your net effective rent by reducing vacancy and turnover. With integrated brokerage, leasing, property management, staging, and corporate relocation support, a partner that owns the full lifecycle can simplify your operations and help you compete.
Explore Highlands neighborhood insights and services through Corken + Company’s local team.
Your investor checklist
- Confirm the exact geography: Denver’s Highlands (80211/80212) vs Highlands Ranch (80126). For the latter, build a separate market plan. Use Wikipedia’s Highlands Ranch overview for neutral context.
- Verify zoning and any overlays. Pull the parcel’s zone district and review the Denver Zoning Code.
- Short-term plan check. Read the city’s STR FAQ and model alternatives if whole-home STR is not viable.
- Long-term compliance. Budget time and costs for the residential rental license and inspections.
- Pro forma inputs. Use current listing prices and active rent comps, with conservative vacancy (6 to 10 percent) and management costs (8 to 12 percent for long-term). Note your sources and update before offers.
- Value-add review. Check ADU eligibility and timeline using Citywide ADUs.
- Management fit. Compare boutique local management against national providers. Price services, fees, and reporting so your operations match your goals.
Is a Highlands rental right for you?
If you want an urban Denver hold with strong lifestyle appeal, Highlands offers durable demand and multiple property types to consider. The path with the fewest regulatory hurdles is a long-term lease strategy, possibly paired with an ADU plan on eligible lots. The right management partner can help you protect rent, reduce downtime, and keep compliance on track.
If you are weighing Highlands against 80126 Highlands Ranch, or want help building a pro forma and management plan, connect with a local, concierge team. Reach out to Corken + Company to map the strategy that fits your portfolio.
FAQs
What is the difference between Denver’s Highlands and 80126 Highlands Ranch?
- Denver’s Highlands (LoHi/Highland/West Highland) are urban neighborhoods near downtown, while Highlands Ranch 80126 is a suburban Douglas County community with different market dynamics.
Are short-term rentals allowed for investor-owned homes in Denver’s Highlands?
- Generally no for whole-home STRs unless it is your primary residence with a license; see Denver’s STR FAQ for details and limited alternatives.
Do I need a license to operate a long-term rental in Highlands?
- Yes, Denver requires a residential rental license and inspections before you lease; start with the city’s licensing page.
What rent range should I underwrite for a 1–2 bedroom in Highlands?
- Recent ranges show about $1,800 to $2,200 for many 1-beds in LoHi and $2,200 to $3,200 for many 2-beds or townhomes, subject to block, finish level, and supply.
Can an ADU help my Highlands investment?
- Yes, if your lot is eligible under Denver’s expanded program, an ADU can add a legal long-term rental unit; confirm specifics via Citywide ADUs.
How do recent Denver apartment deliveries affect Highlands rents?
- Large 2023–2024 deliveries softened advertised rents and occupancy into early 2026, so micro-location and nearby new supply can influence concessions and lease-up times.
