The town of Palmer Lake, Colorado at golden hour against the foothills
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Living in Palmer Lake, Colorado

Karie’s Take

Palmer Lake is a historic small town of about 2,600 people at roughly 7,200 feet, just north of Monument against the foothills of the Palmer Divide. Founded in 1871 and incorporated in 1889, it is known for its natural lake, the reservoir trails, the Santa Fe Regional Trail and the Palmer Lake Star lit on Sundance Mountain since 1935. Typical home values were about $536,000 in 2026, and water supply is an important part of buying here.

2,636Residents, 2020 Census
7,200 ftElevation
$536KTypical home value, mid 2026 (Zillow)
1935First year the Palmer Lake Star was lit
◆ Market snapshot as of November 2026

Why people love Palmer Lake

Palmer Lake has a true small town feel. You can walk to the lake, grab dinner in town and be on a trail in minutes. The reservoir trails climb into the forest above town, and the Santa Fe Regional Trail, built on a former railroad line, runs past town toward Monument and the Air Force Academy for walking, running and biking.

History and the Palmer Lake Star

General William Jackson Palmer founded the town in 1871 along the Denver and Rio Grande railroad, and it was incorporated in 1889. Each holiday season the Palmer Lake Star shines from Sundance Mountain. First lit in 1935 and maintained by the Palmer Lake Volunteer Fire Department since 1937, it was added to the State Register of Historic Properties in 2013.

Water in Palmer Lake

The town water department runs a treatment plant, wells and upper and lower reservoirs, while sewer is handled by the separate Palmer Lake Sanitation District. Not every property is in the town water service area; about 141 properties use private wells. In August 2026 the town declared a Stage 1 water emergency because Monument Creek ran dry and wells were underperforming, limiting outdoor watering, possibly into spring. For buyers, I confirm the water source, any restrictions and well performance before you commit.

Homes in Palmer Lake

Homes here are wonderfully varied, from historic cottages near the lake to hillside homes with foothill views. Lots, slopes, driveways and winter access vary a lot from street to street, so every home deserves a careful look. Homes in 80133 have often taken longer to sell than in Monument, which can create opportunity for buyers.

Schools

Palmer Lake is served by Lewis-Palmer School District 38. Confirm assigned schools by address with the district.

What buyers miss in Palmer Lake

Water and terrain. Know whether a home is on town water or a private well, what restrictions are in place, and how the lot handles drainage, steep driveways and winter access. I build these checks into every Palmer Lake purchase.

Palmer Lake, Colorado FAQ

Is Palmer Lake a real town?

Yes. Palmer Lake is a statutory town in El Paso County, incorporated in 1889.

What is the Palmer Lake Star?

A lighted star on Sundance Mountain above town, first lit in 1935 and maintained by the Palmer Lake Volunteer Fire Department.

Where does Palmer Lake get its water?

From town reservoirs and wells, with a separate sanitation district for sewer; about 141 properties outside the service area use private wells.

Are there water restrictions in Palmer Lake?

Yes. The town declared a Stage 1 water emergency in August 2026, limiting outdoor watering.

What school district serves Palmer Lake?

Lewis-Palmer School District 38.

How many people live in Palmer Lake?

About 2,600, with 2,636 counted in the 2020 Census.

Is there a trail in Palmer Lake?

Yes. The reservoir trails climb above town, and the Santa Fe Regional Trail passes by on a former railroad line.

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