Colorado Springs pulls visitors all year: Pikes Peak and Garden of the Gods in summer, Air Force Academy football and graduation, Broadmoor events, and families visiting service members at Fort Carson and the Space Force bases. The question for a lender is not whether guests come. It is whether the city lets your specific house operate as a non-owner-occupied rental.
In short: LendingStreet finances Colorado Springs short-term rentals with DSCR loans that can qualify on projected nightly-rental revenue on some programs, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. The city requires a short-term rental permit, and rules adopted in 2023 limit how close new non-owner-occupied STRs can be to each other in residential zones, so the permit question comes before the loan question.
Colorado Springs has required a short-term rental permit since 2018, renewed each year, with posted occupancy limits, parking expectations and a local contact. In 2023 City Council added rules aimed at non-owner-occupied rentals in residential zone districts, including a spacing requirement between those units. Permits that existed before the change were generally allowed to continue, but a new investor-owned STR on a block that already has one may not get a permit.
Before you write an offer, check the city's STR permit map and ask the planning department whether a new non-owner-occupied permit is available at that address. If the seller has a permit, ask whether it transfers with a sale; under many rules it does not.
Zoning still matters inside the permit system. Mixed-use and commercial zone districts downtown and along the Tejon and Colorado Avenue corridors are treated differently from single-family neighborhoods, and HOA covenants in many north-side subdivisions bar rentals under 30 days regardless of what the city allows.
Nightly stays in the city are subject to state and local sales tax plus the city's Lodgers and Automobile Rental Tax (LART), and El Paso County and special districts can add their own pieces. Some booking platforms remit part of this; hosts are often responsible for the rest. Budget the tax as a pass-through, not as income.
On the property tax side, Colorado assesses residential property at a low assessment ratio compared with many states, and the legislature has changed that ratio several times in recent years. El Paso County reappraises in odd-numbered years, so a purchase made just before a reappraisal can see its bill move quickly. Use the assessor's current figure and a cushion.
Because the in-city spacing rule limits new permits, many investors look just outside the city. Each town and county writes its own rules, and they change, so treat this as a starting list to verify.
| Area | Demand drivers | What to check |
|---|---|---|
| Westside and Old Colorado City | Garden of the Gods, Manitou access, walkable shops | City permit availability and spacing |
| Manitou Springs | Incline, Pikes Peak Cog Railway, downtown | Separate city with its own STR caps and zoning |
| Woodland Park and Divide (Teller County) | Mountain cabins, Pikes Peak west side, hiking | Town or county permit; wells and septic |
| Cripple Creek and Victor | Casinos, mining history, events | City rules; small comp pool for appraisals |
| Monument and Palmer Lake | Air Force Academy events, Front Range access | Town rules and HOA covenants |
| Unincorporated El Paso County | Black Forest, Falcon, acreage homes | County zoning; HOA covenants; acreage limits vary by program |
Revenue here peaks from late May through September and again around Academy graduation and football weekends, with ski-season spillover to the mountains in winter. Shoulder months are softer inside the city than in the mountain towns. A projection that shows twelve flat months is a red flag.
On programs that qualify on projected revenue, the lender typically uses a third-party short-term rental projection for the specific address and bedroom count. If the projection comes in low, the loan amount usually adjusts, or you can document actual booking history on a refinance.
This example is illustrative and not a quote. An investor buys a permitted three-bedroom home on the Westside for $465,000 and puts 25% down. The third-party projection supports about $3,900 a month in average gross revenue.
The loan is $348,750. Estimated principal and interest is $2,439, property taxes are budgeted at $190 a month and insurance, including hail coverage, at $260. The total payment is $2,889 and DSCR is about 1.35x, comfortably over 1.0x.
| Item | Amount |
|---|---|
| Purchase price | $465,000 |
| Loan amount (75% LTV) | $348,750 |
| Projected monthly revenue | $3,900 |
| Estimated principal and interest | $2,439 |
| Taxes and insurance | $450 |
| Total monthly payment | $2,889 |
| DSCR | About 1.35x |
The Front Range is among the most hail-prone areas in the country, and roofs here get replaced often. West-side and foothills homes can also sit in wildfire risk areas, which some insurers price higher or decline. A short-term rental also needs a policy written for STR use, not a standard landlord policy.
If a nightly permit is not available, furnished rentals of 30 days or more are a common alternative here. Traveling medical staff at UCHealth Memorial and Penrose-St. Francis, officers on temporary duty and families relocating to Fort Carson, Peterson and Schriever all rent furnished homes for one to six months. Many programs qualify these homes on long-term market rent, so run the numbers both ways before you buy.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, permit status and any projection or booking history, and we will run the ratio on both projected nightly revenue and long-term rent so you know where you stand. The Colorado STR page covers mountain and resort markets statewide, and you can call (877) 298-1001 or use the form below.
Possibly, but not everywhere. Non-owner-occupied permits in residential zones are subject to spacing rules adopted in 2023. Check permit availability for the exact address with the city before you buy.
Often it does not. Ask the city how a sale affects the existing permit and plan as if you will need to apply yourself.
On some programs, yes. The lender uses a third-party revenue projection for the property in place of a long-term lease, and the payment has to clear the program minimum.
State and local sales tax plus the city's LART, with county and district pieces in some locations. Confirm which ones the booking platform remits for you.
Yes, on 1-8 unit properties that meet program rules. Wells, septic, acreage and a thin set of comparable sales can affect the appraisal, and acreage limits vary by program.
Not necessarily. Manitou is a separate city with its own caps and zoning. Check its rules directly.
The loan amount usually adjusts to the lower figure, or you can add a larger down payment. A sub-1.0 DSCR program may fit some files.
No. Our loans are for investment property that the borrower does not occupy.
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