Wondering whether you should sell your Three Springs home or keep it as a rental? It is a common question, especially when local home values have held up, rents look promising at first glance, and the neighborhood is still evolving. The right move depends on your numbers, your timeline, and how much hands-on ownership you want, so let’s break down how to make a smart decision.
Start With the Three Springs Market
If you are weighing a sale versus a rental, your first step is understanding what the market is doing right now. In Three Springs Village, the median sale price was $620,000 last month, which was up 4.2% year over year according to Redfin’s neighborhood housing market data. That tells you there is still buyer demand, even as the neighborhood continues to build out over time.
Three Springs is not a static neighborhood. According to the Three Springs community FAQ, full build-out may take 20 or more years, and construction is expected to continue for years. That matters because your home is part of a neighborhood with an ongoing development story, not a fully finished one.
Compare Local Rent Potential
On the rental side, recent Three Springs examples show a fairly wide range depending on size, layout, and property type. A 2-bedroom, 3-bath townhome at 180 Sierra Vista has a Rent Zestimate of $2,675, a 3-bedroom, 3-bath home at 418 Clear Spring Ave is around $3,078, and a newer 3-bedroom, 3-bath home at 94 Pioneer Ave is around $3,849, based on local Zillow listing data.
There is also evidence that real lease rates near the $3,000 mark are achievable. One investor-owned property at 185 Prospector is already leased through September 30, 2026, at $3,000 per month. That is a useful sign that newer Three Springs homes can attract long-term tenants at a meaningful rent level.
Nearby apartment communities also help frame the market. Confluence at Three Springs and Affinity at Three Springs rental information show lower and upper pricing bands in the area, with apartment rents ranging from about $1,592 to $3,115 depending on unit type and community.
Gross Yield Is Only the Starting Point
At first glance, those rent numbers may make holding your home look attractive. Using the listed values from the research, the implied gross rent yield is roughly 5.5% to 6.1% before expenses. That can be a helpful screening tool, but it is not the same thing as profit.
Your actual net cash flow depends on more than rent. You still need to account for vacancy, HOA costs, Metro District charges included in property tax, insurance, maintenance, reserves, and possibly professional property management. If your margin gets thin after those costs, renting may feel less appealing than it looked on paper.
Understand the Broader Durango Rental Market
Your Three Springs home does not compete in a vacuum. It also sits within the larger Durango rental market, where tenant demand and available supply can shift.
According to the CHFA 4Q 2025 apartment survey, Durango’s average rent was $1,625, the median rent was $1,400, and the average rent for a 3-bedroom, 2-bath unit was $2,416. That gives you a wider benchmark for what renters are seeing across town.
Vacancy is also worth watching. The same CHFA report shows 6.2% vacancy in Durango, up 220 basis points year over year. In a small market, supply changes can affect pricing and leasing speed more quickly than many owners expect.
Watch Future Supply and Competition
If you are thinking about holding your home for rental income, future supply matters. The City of Durango housing data shows 1,471 units in review, including market-rate rentals and mixed housing projects.
That does not automatically mean rents will fall. It does mean you should be realistic about competition, lease-up time, and pricing power over the next few years. If your home needs to carry itself as a rental, it is smart to build in a vacancy cushion instead of assuming perfect occupancy.
Consider the Practical Side of Being a Landlord
Renting out a Three Springs home is possible, but it is not fully passive. The Three Springs FAQ notes that rentals are allowed only for long-term use, with a cap of four occupants per residential property. HOA assessments are billed quarterly, and the Metro District tax assessment is included in the property tax bill.
If you live nearby and do not mind handling maintenance calls, turnover, and lease details, that may be manageable. If you live out of the area or simply do not want the day-to-day responsibility, distance landlording can become more work than expected.
Three Springs does offer features that may support tenant appeal. The neighborhood is adjacent to Mercy Regional Medical Center, connected to downtown via the Road Runner system, and designed with walkable streets and trails, according to Three Springs rental and community materials. Those are helpful selling points when you market the property to long-term renters.
Selling May Make Sense If You Want Clarity
For some homeowners, selling is the cleaner and lower-stress option. If you would rather convert your equity into cash, reduce your exposure to maintenance and vacancy risk, or use the proceeds for your next purchase, selling may be the stronger move.
That can be especially true if your projected net rent is modest after expenses. A home that looks fine as a gross-yield investment may still underperform once you include repairs, taxes, insurance, and occasional vacancy. In that case, taking advantage of current value may feel more practical than waiting for another appreciation cycle.
Renting May Make Sense If the Numbers Hold
Renting can make sense when the monthly numbers are solid and the long-term plan is clear. If your likely lease rate creates acceptable net cash flow after realistic expenses, and you want to keep your foothold in Three Springs, holding the property may be worth it.
There is also a bigger-picture argument for keeping the home if you believe in the area’s long-term value trend. The Durango Area Association of REALTORS 2025 annual data shows La Plata County’s median sale price rose from $436,500 in 2015 to $695,000 in 2025. That supports a long-term appreciation story, even though any single year can look uneven.
Do Not Ignore Tax and Legal Details
This decision is not just about market timing. It also has tax and legal consequences, especially if the home has been your primary residence.
According to IRS Publication 527, when you convert a former personal residence to a rental, depreciation begins when the property is placed in service, and the depreciation basis is the lesser of the property’s fair market value or adjusted basis at conversion. That can affect your long-term tax picture in ways many homeowners do not expect.
IRS Publication 523 also explains that you may be able to exclude up to $250,000 of gain, or $500,000 if married filing jointly, on the sale of a home if you meet the requirements. But rental use, nonqualified use, and depreciation adjustments can affect that exclusion when you sell later.
Colorado property taxes are another variable. The Colorado Department of Local Affairs says the 2026 residential local-government assessment rate is 6.8% after a 10% reduction of the first $700,000 in actual value, with final tax bills still depending on local mill levies.
Because basis, occupancy history, prior depreciation, and future plans all matter, this is one area where a CPA should be part of the conversation before you commit.
Use a Simple Decision Framework
If you want a practical way to decide, walk through these questions:
- What is your likely sale price today?
- What is your realistic monthly lease rate?
- What will you pay in HOA, property taxes, insurance, maintenance, and reserves?
- What vacancy rate should you assume?
- Would you self-manage or hire a property manager?
- Do you want equity now, or are you comfortable holding for longer-term value?
- Will renting affect your tax strategy in a meaningful way?
When you compare those answers side by side, the better option often becomes much clearer. In most cases, selling wins on simplicity and certainty, while renting wins only if the net numbers and your ownership goals both support it.
The Best Next Step for Your Home
A smart decision starts with real numbers, not guesses. For a Three Springs homeowner, that means comparing your likely sale value against your likely rental income, then subtracting the actual costs of ownership and a realistic vacancy allowance.
If you want help thinking it through, Jeremy Deas can help you evaluate your Three Springs home with a local, straightforward lens so you can decide whether it is a stronger sell or a stronger hold.
FAQs
Should you sell or rent a Three Springs home if you are moving out of Durango?
- If you are moving out of the area, renting can work, but it is usually best only if the net cash flow is strong enough to justify the added management and maintenance responsibility.
What rent can you expect for a Three Springs home in Durango?
- Based on the local examples in the research, many Three Springs homes appear to fall roughly in the $2,675 to $3,849 range, depending on size, condition, and layout.
Are rentals allowed in Three Springs?
- Yes, but the neighborhood allows long-term rentals only, and the community FAQ notes a four-occupant cap per residential property.
Is the Three Springs housing market still growing?
- Yes. Three Springs is still in an active development phase, and community materials state that full build-out may take 20 or more years.
What costs should you include before renting out a Three Springs property?
- You should account for vacancy, HOA dues, property taxes including Metro District charges, insurance, maintenance, reserves, and property management if you do not plan to self-manage.
Can renting out your former home affect taxes when you sell later?
- Yes. Converting a home to rental use can affect depreciation and your future capital gains treatment, so it is important to review the details with a CPA before deciding.
