Firefighters suspect the transient was taking shelter inside the vacant home, and when temperatures dropped, started a fire.
Around 7:15 a.m. Friday the fire got out of control and started to burn the house on the 800 block of E. 5th Street.
No one lived inside the home, and no one was inside at the time of the fire. Officials say the utilities were shut off.
Captain Chris Harner with the Pueblo Fire Department says they don't have a total estimate the cost of damage, but believe it was in the range of $20,000 to $30,000. Crews were able to get the flames down quickly and were only on scene about an hour. There were no injuries.
The cause of the fire is still under investigation.