Five military installations, a steady stream of permanent change of station moves and a city that keeps growing north and east: Colorado Springs has one of the most dependable renter pools in the Mountain West. The harder question is whether the rent covers the payment at the leverage you want.
In short: LendingStreet makes DSCR loans on 1-8 unit rentals in Colorado Springs and El Paso County that qualify on the property's rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, cash-out up to 75% LTV, the minimum credit score is 620 and LLC borrowers are standard. Colorado property taxes are moderate, but hail-driven insurance premiums and metro district levies in newer subdivisions are what most often move the ratio here.
Fort Carson, Peterson Space Force Base, Schriever Space Force Base, the U.S. Air Force Academy and Cheyenne Mountain bring service members, civilians and contractors to Colorado Springs on regular rotations. Many of those households rent, often using their housing allowance, and many move on a two- to four-year cycle. Add UCCS, Colorado College, the hospital systems and a growing tech and defense workforce, and demand stays broad.
For investors that means steady leasing, but also predictable turnover in summer moving season. Budget for a vacancy month and make-ready costs every couple of years, even though they do not enter the DSCR calculation.
Each part of the city draws a different tenant and carries different costs.
| Area | Typical rental stock | Tenant draw | Cost to watch |
|---|---|---|---|
| Security-Widefield, Fountain | 1970s-2000s single-family, some newer tracts | Fort Carson | Metro district levies on newer homes |
| Powers corridor, Stetson Hills, Banning Lewis Ranch | 1990s-2020s tract homes | Peterson and Schriever | Metro districts; HOA leasing rules |
| Briargate, Northgate, Pine Creek | Larger 1990s-2010s homes | Air Force Academy, north-side employers | Higher prices relative to rent |
| Old North End, Patty Jewett, Hillside, Knob Hill | Older homes, duplexes, small multifamily | Downtown, Colorado College, hospitals | Older systems; historic overlay in parts of the north end |
| Westside, Old Colorado City | Early 1900s homes and cottages | Downtown and west-side workers | Hail roof claims; wildfire exposure toward the foothills |
Colorado taxes residential property on an assessment ratio set by the state legislature, which has changed several times in recent years, and the El Paso County Assessor revalues property every two years. Overall bills in Colorado Springs are moderate compared with many states, which helps rental cash flow.
The catch is metropolitan districts. Many newer subdivisions east and north of the city are served by metro districts that levy their own mills to repay infrastructure debt, and those mills can add a noticeable amount to the bill. Use the actual tax bill or the assessor's mill levy breakdown, not a citywide average, and remember a revaluation year can raise the bill on the next cycle.
This example is illustrative and not a quote. An investor buys an older duplex near Hillside and Knob Hill for $505,000. Each unit rents for $1,475, so gross rent is $2,950 a month. Taxes are budgeted at about $219 a month and insurance, with a hail deductible, at $205.
At 70% LTV the loan is $353,500, with estimated principal and interest of about $2,436 on a 30-year fixed. The total payment is about $2,859 and DSCR is about 1.03x, above the 1.0x standard minimum. At 80% LTV the payment would be about $3,207 and the ratio about 0.92x, which is why many Colorado Springs buyers bring more than the minimum down or look at sub-1.0 programs.
The Front Range is one of the most hail-prone areas in the country, and roof claims are routine in Colorado Springs. Many carriers now use separate wind and hail deductibles, sometimes set as a percentage of the dwelling value. Ask for that number, not just the premium.
The west side and foothills face wildfire risk, and the Waldo Canyon and Black Forest fires are part of local memory. Homes in the wildland-urban interface, such as parts of Mountain Shadows, Cedar Heights, the Broadmoor foothills and Black Forest, may cost more to insure or have fewer carriers willing to write them.
Colorado Springs requires a permit for short-term rentals and has tightened rules on non-owner-occupied STRs in residential zones, including spacing limits for new permits. Manitou Springs and unincorporated El Paso County have their own rules, and many HOAs ban stays under 30 days. Confirm with the city or county before counting on nightly income; some of our programs qualify STRs on projected revenue where they are allowed.
Colorado adopted a statewide just-cause eviction law in 2024, which limits non-renewals for many tenancies without a qualifying reason. State law still prevents cities from adopting rent control. These rules do not change how we qualify a loan, but they affect how you manage turnover and rent increases on a property you buy with tenants in place.
Colorado also requires landlords to follow state rules on security deposits and habitability, and those standards have been strengthened in recent years. A property manager who works the Springs market every day is worth the fee for many out-of-area owners.
A complete package lets us size the loan quickly.
Our investor loans are business-purpose loans on non-owner-occupied property. We lend across El Paso County, from Monument and Falcon to Fountain. Use the form below or call (877) 298-1001 and we will run the ratio at a few loan amounts.
The loan qualifies on the lease or market rent, not on who the tenant is. Steady military demand helps keep units leased, which supports the rent used in the ratio.
Metro districts are special districts in many newer subdivisions that levy property taxes to repay infrastructure debt. Those taxes are part of your payment, so they lower the DSCR.
The El Paso County Assessor revalues property every two years. A revaluation can change your tax bill on the next cycle.
Mostly through insurance. Premiums and percentage-based hail deductibles have risen, and the premium is part of the payment used in the ratio.
Only where a permit is available and HOA rules allow it. The city has restricted new non-owner-occupied STRs in residential zones, so confirm before buying.
The minimum is 620. Stronger credit and lower leverage can improve terms.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home must be rented to a tenant, not lived in by you.
Yes. Our DSCR program covers El Paso County. Each area has its own taxes, districts and HOA rules, so run each property on its own numbers.
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