Colorado's ski towns built the state's vacation rental market, and many of them have since capped licenses or raised fees. Denver, meanwhile, only allows short-term rentals in a host's primary residence.
In short: You can finance a Colorado Airbnb or VRBO property with a DSCR loan from LendingStreet, and on some programs the property qualifies on projected short-term rental income instead of a long-term lease. Loans start at $150,000 with no stated maximum, the minimum credit score is 620 and there are no W-2s or tax returns. License caps in mountain towns and Denver's primary residence rule shape where an investor can buy, so the license comes before the projection.
Summit County, including Breckenridge, Frisco, Dillon and Keystone, is the largest mountain market, with condos and townhomes near ski lifts. Vail, Avon and Beaver Creek, Steamboat Springs, Winter Park, Crested Butte, Telluride and Aspen and Snowmass each have their own licensing systems and price levels.
Estes Park, at the edge of Rocky Mountain National Park, and Durango and Pagosa Springs in the southwest are summer-driven markets. Colorado Springs allows non-owner-occupied STRs with a permit and some limits in residential zones. Grand Lake, Buena Vista and Salida draw river and trail visitors.
| Market | Who books | What to check |
|---|---|---|
| Summit County | Skiers, summer hikers | License caps by zone, HOA |
| Steamboat Springs | Skiers, families | Overlay zones, license fees |
| Estes Park | National park visitors | License cap, town vs county rules |
| Colorado Springs | Tourists, military visitors | Permit, residential zone limits |
Denver allows short-term rentals only in the host's primary residence, so a non-owner-occupied investment property there cannot operate nightly. Investors who want Front Range STR exposure usually look at Colorado Springs or mountain towns instead.
Mountain towns license STRs and many cap them. Breckenridge limits new licenses in many residential areas, Steamboat Springs uses overlay zones, and Summit County, Estes Park and others cap or zone licenses. Licenses often do not transfer automatically on sale. Confirm whether a property has an active license and whether it can carry over to you.
The ratio is simple: monthly income divided by the monthly payment, where the payment includes principal, interest, taxes, insurance and HOA dues. What changes on a short-term rental is the income figure. Some programs accept a projection of nightly-rental revenue from a third-party data provider; others lean on 12 months of booking history.
A ratio of 1.0x or better meets the standard minimum, and some programs go below it. Leverage tops out at 80% LTV on a purchase and 75% on a cash-out refinance, but short-term rental programs and bigger balances can be lower, so it varies by program. No W-2s, a 620 minimum score, LLC borrowers welcome and terms up to 30 years. The program covers one to eight units, which includes duplexes and small cottage groups; nine units or more is handled as commercial.
Colorado applies state sales tax to short-term lodging, and counties, towns and special districts add lodging, marketing and housing taxes. Several mountain towns have adopted voter-approved STR excise taxes to fund workforce housing. Add these to your revenue model and confirm what the platform collects.
Colorado residential property taxes are moderate relative to value, but values in resort towns are high and assessments have risen in recent cycles. Use the current assessor figure for the exact unit.
Insurance needs to cover nightly rental use. Wildfire risk shapes underwriting in many foothill and mountain areas, and snow loads matter for roofs. Ski-area condos often carry high HOA dues that include utilities, snow removal and building insurance, so those dues go straight into the ratio.
This example is illustrative and not a quote. An investor buys a two-bedroom licensed condo near Winter Park for $590,000. A projection for comparable licensed units shows $62,000 a year in gross revenue. At 75% LTV the loan is $442,500, and estimated principal and interest on a 30-year term is about $3,094 a month. Add $230 in taxes, $150 in insurance and $720 in HOA dues, and the payment is about $4,194. $5,167 of average monthly revenue divided by that payment gives a DSCR of about 1.23x.
If the projection came in lower, the investor could borrow less. At 70% LTV the loan is $413,000, the payment about $3,988 and the DSCR about 1.30x, with $29,500 more brought to closing. Low property taxes help, but the HOA line is large. A condo whose dues include more utilities and amenities can still work if the revenue projection supports it.
| Item | Amount |
|---|---|
| Purchase price | $590,000 |
| Loan amount at 75% LTV | $442,500 |
| Down payment | $147,500 |
| Projected annual revenue | $62,000 |
| Average monthly revenue | $5,167 |
| Estimated principal and interest (30-year) | $3,094 |
| Property taxes | $230 |
| Insurance | $150 |
| HOA dues | $720 |
| Total monthly payment | $4,194 |
| DSCR | About 1.23x |
Ski towns earn the most from late November through early April, with holiday weeks and spring break at the top. Summer has become a second season in most mountain towns, while spring mud season and late fall are slow. Estes Park, Durango and Salida lean toward summer. The projection should include those slow months, not just peak weeks.
A complete file moves faster. Gather these before you apply:
Our investor loans are business-purpose loans on non-owner-occupied property. Share the address, the price, a revenue projection and how much leverage you want. We run the ratio on realistic taxes and insurance and come back with a few structures, plus a refinance path once the property has a booking history of its own.
We lend in Summit, Eagle, Grand, Routt, Larimer and El Paso counties and other Colorado markets where licenses are available. Reach us at (877) 298-1001, or get a quote through the form below.
No. Denver allows short-term rentals only in the host's primary residence. Investors often look at Colorado Springs or mountain towns instead.
Not always. Breckenridge and other towns have caps and rules about new and transferred licenses. Confirm the license status with the town before closing.
Dues often include utilities, snow removal, shuttles and the building's insurance. They count in the DSCR payment, so compare buildings on total cost.
Only if the property can legally get a license. Without one, the projection does not matter, so confirm availability first.
Not on every program. Some qualify a short-term rental on projected nightly revenue or on its booking history instead of a 12-month lease.
Yes. Once you have booking history, a rate-and-term or cash-out refinance can use actual revenue. Our STR refinance guide, linked below, covers how that works.
No. Our investor loans are business-purpose loans on non-owner-occupied property only, so primary and second homes are out.
Timing depends mostly on the appraisal, title and insurance. A complete file with the revenue projection, permit confirmation and insurance quote in hand moves fastest.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.