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Using the Military Friendly® States Tool, this series explores what makes each state unique and why it may be the perfect place to begin your next mission.

Colorado has mountains, sunshine, outdoor recreation and a reputation for being one of the country’s most desirable places to live.

It also has something that matters even more to Veterans: a massive military, aerospace, space and national-security economy.

For Veterans coming out of intelligence, cybersecurity, aviation, engineering, communications, logistics, maintenance or other technical fields, Colorado can offer a surprisingly natural bridge into civilian employment.

But there is a catch.

Colorado isn’t cheap.

The state can offer excellent career opportunities and quality of life, but housing costs can quickly change the math. And the experience of living in Colorado Springs is very different from living in Denver, Fort Collins, Pueblo or a mountain community.

That’s why the G.I. Jobs Best States for Veterans series isn’t about handing every state a single score. It’s about looking at what actually matters when you’re deciding where to build your next chapter: jobs, benefits, education, healthcare, housing and lifestyle.

Colorado at a Glance

Category	Colorado
Veteran population	342,276
Median value of owner-occupied home	$539,400
Median gross rent	$1,761/month
Owner-occupied housing rate	66.2%
Median monthly owner costs with mortgage	$2,326
State unemployment rate	4.0% (August 2026)
Major employment strengths	Aerospace, defense, space, cybersecurity, technology, healthcare, government and engineering
Biggest advantage	Military, space and national-security career opportunities
Biggest challenge	Housing costs

Source: U.S. Census Bureau QuickFacts and U.S. Bureau of Labor Statistics. The unemployment figure is Colorado’s overall unemployment rate, not the Veteran unemployment rate.

The Short Version

Colorado is one of the strongest states for Veterans whose military experience translates into aerospace, defense, space, cybersecurity, intelligence, engineering, healthcare or federal careers.

Colorado Springs is particularly attractive because of its concentration of military and space organizations. Peterson Space Force Base supports major national-security organizations and mission partners, while Schriever Space Force Base has thousands of military and civilian employees. Buckley Space Force Base adds another major space and defense presence around the Denver metro.

Denver then gives Veterans access to a much broader civilian economy, including technology, healthcare, professional services, government, energy and aerospace.

The downside?

Housing.

Colorado’s statewide median owner-occupied home value was $539,400 and median gross rent was $1,761 during 2020–2024. Those numbers can be substantially higher in some of the state’s most desirable Front Range and mountain communities.

So the Colorado formula is pretty simple:

Strong career market + strong military community + excellent lifestyle − expensive housing = potentially great Veteran destination.

The question is whether the numbers work for you.

Table of Contents

• Veteran Snapshot
• Why Veterans Choose Colorado
• Who Colorado Is Best For
• Colorado by the Numbers
• Employment Outlook for Veterans
• If Your MOS Was…
• Education Opportunities
• Veteran Benefits in Colorado
• Healthcare & VA Resources
• Best Cities for Veterans
• Cost of Living
• Outdoor Recreation & Veteran Lifestyle
• Veteran Reality Check
• Pros & Cons
• Is Colorado Right for You?
• Frequently Asked Questions

Veteran Snapshot

Colorado is home to approximately 342,276 Veterans, according to the latest U.S. Census Bureau QuickFacts data. The state has a particularly visible military presence along the Front Range, with Colorado Springs serving as one of the country’s major military communities.

The state’s military economy is also increasingly tied to the space industry.

Peterson Space Force Base supports mission partners including NORAD, U.S. Northern Command, U.S. Space Command and Space Operations Command. Schriever Space Force Base is home to approximately 8,000 military and civilian employees. Buckley Space Force Base has also played a major role in the country’s missile-warning and space-based surveillance missions.

That creates a particularly strong civilian career ecosystem for Veterans with experience in:

• Intelligence
• Cybersecurity
• Space operations
• Aviation
• Engineering
• Communications
• Logistics
• Security
• Project management
• Maintenance
• Federal operations

Colorado’s statewide unemployment rate was 4.0% in August 2026. Again, that is the overall state unemployment rate, not a Veteran-specific figure.

Why Veterans Choose Colorado

The Military-to-Civilian Connection Is Strong

Some states have a military presence.

Colorado has an entire economy built around pieces of the national-security mission.

That distinction matters.

A Veteran who spent years working with satellite systems, intelligence, communications, aviation or cyber operations may not have to completely reinvent their career after leaving the military.

Instead, they may be able to translate their experience into defense contracting, aerospace, space systems, cybersecurity or federal employment.

Colorado Springs Is a Major Military Career Hub

Colorado Springs is the obvious starting point.

The area is home to Peterson Space Force Base, Schriever Space Force Base, the U.S. Air Force Academy, Fort Carson and other military and national-security organizations.

Peterson alone supports more than 100 mission partners, including major national-security commands.

For Veterans who want to remain connected to the defense and national-security industries, that ecosystem can be a major advantage.

Denver Offers a Different Kind of Opportunity

Denver and the surrounding metro area give Veterans a broader civilian job market.

Technology, healthcare, professional services, government, telecommunications, energy, aerospace and construction all contribute to the region’s economy.

That makes Colorado especially interesting for Veterans who want to maintain some connection to their military experience while also having the option to move into a completely different industry.

Outdoor Recreation Is a Lifestyle Advantage

Let’s acknowledge the obvious.

Colorado is pretty.

Very pretty.

For Veterans who spend their free time hiking, skiing, mountain biking, fishing, hunting, camping or simply trying to convince themselves that getting up at 5 a.m. for a mountain trail is “relaxing,” Colorado has a lot to offer.

That lifestyle is a genuine reason people choose the state.

It’s also one of the reasons housing demand can be so intense.

Who Colorado Is Best For

Colorado may be a particularly strong fit for:

• Veterans with aerospace experience
• Veterans with space operations experience
• Intelligence professionals
• Cybersecurity and IT Veterans
• Engineers
• Aviation professionals
• Veterans pursuing federal careers
• Defense contractors
• Healthcare professionals
• Veterans with logistics or operations experience
• Veterans who prioritize outdoor recreation
• Veterans who want a large military-connected community

Colorado may require more thought if:

• Your primary goal is inexpensive housing
• You want a large amount of property
• You’re living primarily on a fixed retirement income
• You want to minimize state income taxes
• Your career has limited opportunities along the Front Range
• You don’t enjoy winter weather
• You don’t want to deal with altitude or mountain driving

Colorado by the Numbers

Colorado’s latest Census data provides a useful starting point for understanding the state’s housing picture.

The statewide median value of an owner-occupied home was $539,400 during 2020–2024. Median gross rent was $1,761 per month, while median monthly owner costs for homeowners with a mortgage were $2,326. The owner-occupied housing rate was 66.2%.

Colorado also had a median household income of roughly $95,000 during the same period.

Those numbers can make Colorado look manageable on paper.

The problem is that statewide averages hide major regional differences.

Housing in Denver, Boulder and some mountain communities can be dramatically more expensive than in southern or western Colorado.

That means Veterans should research the specific community where they plan to live, rather than relying on a statewide average.

Employment Outlook for Veterans

Colorado’s biggest employment advantage for Veterans is the overlap between military skills and civilian demand.

Colorado Springs

Best for: Defense, aerospace, space, intelligence, cybersecurity, military contracting and federal employment.

Colorado Springs is probably the strongest Colorado market for Veterans who want to remain connected to the defense and national-security world.

Peterson and Schriever Space Force Bases alone support thousands of military and civilian employees and a broad network of mission partners.

Denver / Aurora

Best for: Technology, healthcare, professional services, aerospace, government and broader civilian careers.

Aurora also provides access to Buckley Space Force Base and the broader Denver metro economy.

This can be a good choice for Veterans who want military-connected employment options without making defense the center of their entire civilian career.

Fort Collins

Best for: Technology, engineering, education and quality of life.

Fort Collins can be attractive for Veterans who want a smaller-city environment while remaining within reach of the Front Range economy.

Pueblo

Best for: Southern Colorado, manufacturing, healthcare and a potentially more manageable housing market.

Pueblo does not have the same breadth of employment opportunities as Denver or Colorado Springs, so Veterans should have a job strategy before moving there.

Grand Junction

Best for: Western Colorado, healthcare, energy, outdoor recreation and a smaller-city lifestyle.

Grand Junction offers a very different experience from the Front Range.

That’s part of the appeal—and part of the employment challenge.

If Your MOS Was…

Your military job may already have a civilian equivalent.

You just have to stop describing it in military language.

Military Experience	Potential Colorado Civilian Careers
Intelligence	Intelligence analyst, risk analyst, defense contractor, national-security analyst
Cyber / IT	Cybersecurity, network administration, cloud computing, IT
Space Operations	Satellite operations, space systems, aerospace
Aviation	Aerospace, aircraft maintenance, aviation operations
Engineering	Aerospace, defense, energy, infrastructure, manufacturing
Communications	Telecommunications, networking, IT
Logistics	Supply chain, transportation, distribution, defense logistics
Medical	Healthcare, hospital operations, medical administration
Military Police	Law enforcement, security, emergency management
Maintenance	Aerospace, manufacturing, fleet and equipment management
Special Operations	Security, consulting, training, federal contracting
Leadership	Operations, project management, program management
Public Affairs	Corporate communications, public relations, government affairs

For Veterans making the transition, the goal isn’t to erase your military experience.

It’s to translate it into language a civilian hiring manager understands.

Related: [Military Resume vs. Civilian Resume] and [Best Certifications for Veterans]

Education Opportunities

Colorado offers Veterans access to public universities, private colleges, community colleges, technical programs and career-training options.

Major institutions include:

• University of Colorado system
• Colorado State University
• University of Denver
• Metropolitan State University of Denver
• Community college systems throughout the state
• Technical and workforce-training programs

For Veterans using federal education benefits, the Post-9/11 GI Bill remains one of the most important resources.

For the 2026–27 academic year, VA says eligible users can receive up to the full net tuition and mandatory fees at public institutions, with separate limits applying to private schools. Eligible Veterans may also receive a housing allowance and support for qualifying licensing and certification tests.

Colorado also has state-specific education programs for qualifying military-connected students, including programs tied to the Colorado National Guard and Veteran families. Because eligibility and program availability can change, Veterans and spouses should verify current requirements before enrolling.

Related: [GI Bill Guide] | [Military Friendly® Schools]

Veteran Benefits in Colorado

Colorado has several useful Veteran benefits, but this is an area where the fine print matters.

Military Retirement Pay

Colorado does not simply make all military retirement income tax-free.

Instead, Colorado allows qualifying taxpayers to claim a pension and annuity subtraction. The state’s Department of Revenue specifically notes that military retirement benefits may be fully or partially exempted depending on the taxpayer’s circumstances.

For the broader pension/annuity subtraction, qualifying taxpayers who are at least 55 but under 65 may generally subtract up to $20,000 of qualifying pension or annuity income, while taxpayers age 65 and older may generally subtract up to $24,000, subject to the applicable rules.

Bottom line: If you’re a military retiree considering Colorado, run the actual tax calculation for your age and retirement income instead of assuming military retirement is completely tax-free.

Disabled Veteran Property Tax Benefits

Colorado has a property tax exemption for qualifying Veterans with disabilities.

The exemption has specific eligibility requirements and applies to qualifying primary residences. Colorado legislation increased the maximum exempted actual value of a qualifying disabled Veteran’s residence to $400,000.

This is not a blanket property tax exemption for all Veterans.

Eligibility depends on disability status and other requirements, and applications are handled through the appropriate county assessor.

A New Veteran Tax Credit

Colorado also enacted a Veteran income tax credit beginning with tax years starting in 2026.

Under the program, an eligible Veteran must be honorably discharged, have at least a 10% service-connected disability rating and own and occupy a primary residence in Colorado. The credit is tied to the property taxes paid and the Veteran’s disability rating. Veterans must apply through their county assessor and provide the required VA documentation.

Because this is a newer benefit, Veterans should check current state and county guidance before filing.

Hunting and Fishing Benefits

Colorado is particularly generous with outdoor recreation benefits for qualifying disabled Veterans.

Colorado Parks and Wildlife offers a lifetime fishing license or lifetime fishing and small-game combination license to qualifying Colorado resident Veterans with service-connected disabilities. Purple Heart recipients may also qualify under the program.

Qualifying Veterans can also participate in certain hunting programs and may receive accommodations for hunting.

Active-duty military members stationed in Colorado and their families can also qualify for Colorado resident hunting and fishing license rates under the state’s military residency rules.

Veterans’ Employment Preference

Colorado law also provides a framework allowing private employers to adopt Veteran-preference hiring policies for qualified Veterans.

That doesn’t mean every Colorado employer gives Veterans preference. Instead, employers can establish qualifying preference policies under state law.

Veterans pursuing state and federal employment should also research the applicable government hiring-preference programs separately.

Healthcare & VA Resources

Colorado has a substantial VA healthcare network, particularly along the Front Range.

VA Eastern Colorado Health Care operates facilities and clinics serving Veterans in the Denver/Aurora and Colorado Springs areas, with additional locations including Pueblo and Salida.

Colorado also has VA Western Colorado Health Care serving Veterans around Grand Junction and western Colorado.

That gives Colorado Veterans access to a meaningful VA healthcare network.

But geography still matters.

A Veteran living in Aurora or Colorado Springs has a different healthcare equation from someone living in western Colorado or a remote mountain community.

VA also provides community care in situations where qualifying Veterans cannot receive the needed care directly through VA, subject to eligibility and authorization requirements.

Before moving, use the VA facility locator to check the actual facilities and services available near your prospective home.

Best Cities for Veterans in Colorado

Colorado Springs

Best for: Defense, aerospace, space, intelligence and military-connected careers.

Colorado Springs is the clear choice for Veterans who want to remain connected to the military and national-security ecosystem.

It also offers immediate access to some of Colorado’s most recognizable outdoor attractions.

The tradeoff is that housing costs have risen substantially as demand has grown.

Denver

Best for: Broad civilian career opportunities.

Denver is the better option if you’re looking for a career that isn’t necessarily tied to defense.

Technology, healthcare, professional services, government, energy and aerospace provide a broader employment mix.

The tradeoff is housing and traffic.

Aurora

Best for: Healthcare, defense, aerospace and access to the Denver metro.

Aurora is particularly interesting for Veterans who want proximity to Buckley Space Force Base and the Denver-area economy.

It also provides access to major healthcare institutions.

Fort Collins

Best for: Education, technology, engineering and lifestyle.

Fort Collins can be a good fit for Veterans who want a smaller-city environment with access to Northern Colorado’s employment and education opportunities.

Pueblo

Best for: Southern Colorado and a potentially more manageable cost structure.

Pueblo can make sense for Veterans who don’t need to be in Denver or Colorado Springs every day.

The smaller job market is the tradeoff.

Grand Junction

Best for: Western Colorado, healthcare, energy and outdoor recreation.

Grand Junction offers a completely different Colorado lifestyle.

It’s farther from the Front Range but provides access to western Colorado’s outdoor recreation and a smaller-city environment.

Cost of Living

Here’s where Colorado gets complicated.

The statewide median value of an owner-occupied home is $539,400, with median gross rent of $1,761 and median monthly owner costs with a mortgage of $2,326.

Those numbers are useful.

They are also not enough.

Front Range

Denver, Boulder, Fort Collins and Colorado Springs contain much of the state’s employment growth and military economy.

They also contain some of the state’s most expensive housing.

Mountain Communities

The lifestyle is spectacular.

The housing bill can be spectacular in a different way.

Some mountain communities have extremely limited housing inventory and high prices.

Southern Colorado

Pueblo and surrounding communities can offer a different cost structure from the Denver metro.

But lower housing costs may come with a smaller employment market.

Western Colorado

Grand Junction and surrounding areas offer outdoor access and a smaller-city lifestyle.

Again, the employment market isn’t as broad as Denver.

The Bottom Line

Don’t move to Colorado because you found a cheap house.

Don’t move there because you found a high-paying job, either.

Look at both.

Then add commuting costs, property taxes, insurance, utilities and the actual cost of living in the community where you plan to spend your time.

Outdoor Recreation & Veteran Lifestyle

Colorado is almost unfair when it comes to outdoor recreation.

Veterans can find opportunities for:

• Hiking
• Skiing
• Snowboarding
• Mountain biking
• Camping
• Fishing
• Hunting
• Off-road recreation
• Rock climbing
• Rafting
• Wildlife viewing
• National forest recreation
• State parks

Colorado Parks and Wildlife also offers specific programs for military members and qualifying disabled Veterans. Active-duty military stationed in Colorado can qualify for resident-rate hunting licenses, while qualifying disabled Veterans can apply for lifetime fishing and small-game benefits.

For a Veteran who wants outdoor recreation to be part of everyday life rather than something you do twice a year on vacation, Colorado is difficult to beat.

Veteran Reality Check

1. Colorado Is Not Cheap

The mountains are beautiful.

The mortgage is less poetic.

Don’t assume a Colorado salary automatically makes Colorado affordable.

2. Colorado Springs and Denver Are Very Different

Colorado Springs is heavily connected to defense, military and national security.

Denver has a much broader civilian economy.

Choose based on the career you actually want.

3. Your Military Experience May Be Especially Valuable Here

Colorado has unusually strong crossover opportunities for Veterans in:

• Cyber
• Intelligence
• Space
• Aviation
• Engineering
• Communications
• Defense
• Federal employment

That’s a major advantage.

4. Altitude Is Real

Colorado’s elevation can affect people differently.

Give yourself time to adjust, particularly if you’re moving from a low-altitude environment.

5. Winter Is Part of the Deal

Snow and cold weather aren’t just recreational activities.

They can affect:

• Commuting
• Vehicle costs
• Heating bills
• Home maintenance
• Travel
• Outdoor plans

If you’re moving from a warm-weather state, don’t underestimate this.

6. Pick the Career Market Before the Mountain View

This may be the most important Colorado advice.

Don’t choose the house first.

Find the job market.

Then the job.

Then the commute.

Then the housing.

Then go find your mountain view.

Pros & Cons

Pros

• Major defense and aerospace economy
• One of the country’s strongest space-industry ecosystems
• Large military community
• Strong cybersecurity and intelligence opportunities
• Excellent engineering opportunities
• Significant federal employment presence
• Strong healthcare industry
• Multiple higher-education options
• Extensive outdoor recreation
• VA healthcare network along the Front Range and western Colorado
• Veteran-specific recreation benefits
• Strong quality of life in many communities
• Potential crossover from military to civilian employment without starting completely over

Cons

• Housing costs can be high
• State income tax
• Denver-area traffic
• Expensive mountain communities
• Employment opportunities are concentrated along the Front Range
• Rural and mountain healthcare access can require longer travel
• Winter weather
• High altitude
• Cost of living can be difficult for some military retirees
• Outdoor lifestyle can come with higher housing demand

Is Colorado Right for You?

Colorado deserves a serious look if you’re a Veteran with experience in:

• Aerospace
• Space
• Cybersecurity
• Intelligence
• Aviation
• Engineering
• Defense
• Healthcare
• Federal operations
• Logistics
• Technology

It’s also a strong choice if outdoor recreation is a major part of the life you want after military service.

Colorado may be less attractive if your number-one priority is cheap housing, low taxes or a large property.

The most important question isn’t:

“Is Colorado a good state for Veterans?”

It’s:

“Does the Colorado region that fits my career also fit my budget?”

If the answer is yes, Colorado can be an excellent place to build your next chapter.

The G.I. Jobs Take

Colorado is one of those states where the career and lifestyle arguments are both very strong—and the spreadsheet still gets the final vote.

For Veterans coming out of aerospace, intelligence, cyber, aviation, engineering, space or defense, Colorado can be an unusually natural transition.

Colorado Springs gives you one of the country’s strongest military-connected civilian economies.

Denver gives you a much broader private-sector market.

Fort Collins, Pueblo and Grand Junction offer different versions of Colorado life.

But none of that changes the housing math.

If you’re moving here, don’t start with the mountain view.

Start with the job.

Then the commute.

Then the house.

Then go find the mountain.

Frequently Asked Questions About Colorado for Veterans

Is Colorado a good state for Veterans?

Colorado can be an excellent state for Veterans, particularly those with experience in defense, aerospace, space operations, intelligence, cybersecurity, engineering, aviation and federal employment.

Is Colorado good for military retirees?

It can be, particularly for retirees who want access to Colorado’s military communities and outdoor lifestyle. However, retirees should carefully compare Colorado’s tax treatment and housing costs with other states before moving.

Does Colorado tax military retirement?

Colorado can partially exempt military retirement benefits through its pension and annuity subtraction rules. The amount depends on factors including age and the type of retirement income. Military retirees should check current Colorado Department of Revenue guidance rather than assuming all military retirement is tax-free.

Do Veterans get a property tax exemption in Colorado?

Qualifying disabled Veterans may receive a property tax exemption on an eligible primary residence. Colorado has increased the maximum exempted actual value for qualifying disabled Veterans to $400,000. Eligibility requirements apply.

What is Colorado’s new Veteran tax credit?

Beginning with tax years starting in 2026, qualifying Veterans with at least a 10% service-connected disability who own and occupy a Colorado primary residence may qualify for a refundable income tax credit tied to property taxes paid and disability rating. Applicants must work through their county assessor.

What are the best Colorado cities for Veterans?

Colorado Springs is particularly strong for defense, aerospace and military-connected careers. Denver and Aurora offer broader civilian employment opportunities. Fort Collins, Pueblo and Grand Junction can be better fits depending on your career, budget and lifestyle priorities.

Is Colorado Springs good for Veterans?

Yes. Colorado Springs has one of the country’s strongest military-connected economies, with major installations and organizations connected to the Air Force, Space Force, Army and national-security missions.

What jobs are best for Veterans in Colorado?

Veterans may find strong opportunities in aerospace, space operations, cybersecurity, intelligence, engineering, aviation, defense contracting, healthcare, technology and federal employment.

Is Colorado affordable for Veterans?

Colorado is not generally considered a low-cost state. Housing is the biggest concern, especially in Denver, Boulder and some mountain communities. The statewide median home value was $539,400 and median gross rent was $1,761 during 2020–2024.

Does Colorado have good VA healthcare?

Colorado has a significant VA healthcare network, including facilities in the Denver/Aurora area, Colorado Springs, Pueblo, Salida and western Colorado. Access and specialty services vary by location.

Does Colorado offer outdoor benefits for Veterans?

Yes. Qualifying disabled Colorado resident Veterans can apply for lifetime fishing and small-game combination licenses, and Colorado Parks and Wildlife offers other military and disabled-Veteran recreation programs.

Does Colorado have a large military community?

Yes. Colorado Springs in particular has a major military and national-security presence, while Buckley Space Force Base adds another significant military and space presence in the Denver metro area.

Explore More G.I. Jobs Veteran Resources

Ready to compare Colorado with other states?

Explore all 50 Best States for Veterans

You can also use the Military Friendly® States Tool to compare Veteran-friendly factors across the country.

Before you make your move, check out:

• Military Friendly® Employers
• Military Friendly® Schools
• Military Resume vs. Civilian Resume
• Best Certifications for Veterans
• GI Bill Guide

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