Here is the plain answer first: inside the City and County of Denver, a short-term rental generally must be the host's primary residence. An investor-owned house in Highland or Wash Park cannot be run as a full-time Airbnb under Denver's rules.
In short: LendingStreet finances investor-owned short-term rentals with DSCR loans, but in Denver itself the city's STR license is limited to a host's primary residence, which rules out non-owner-occupied nightly rentals. Denver-area investors instead use our STR loans in suburbs that license investor-owned STRs and in mountain and foothills communities that still issue licenses, or they run 30-day-plus furnished rentals in Denver under a long-term rental license. On some programs, STR loans qualify on projected revenue from a third-party projection, with no tax returns and LLC borrowers welcome.
Denver requires a short-term rental license for stays under 30 days, and the license is only available for the operator's primary residence. You can rent your own home, or part of it, while you live there, but you cannot license a second property you own as an investment. Denver also collects lodger's tax on short stays.
Because our investor loans are business-purpose loans on non-owner-occupied property, we do not finance a Denver primary residence used as an STR. For a Denver address, the practical paths are long-term leases or furnished stays of 30 days or more, which fall under the city's residential rental license instead.
The metro is many separate cities, and each sets its own STR rules. Some suburbs, Aurora among them, issue STR licenses that do not require the owner to live in the home, with conditions such as occupancy limits, parking and local contact requirements. Others limit STRs to primary residences or to certain zones. Confirm with the city where the parcel sits, since an address with a Denver mailing city may actually be in unincorporated Adams, Arapahoe or Jefferson County.
HOA covenants matter too. Many newer subdivisions in Aurora, Parker, Castle Rock and Thornton set minimum lease terms that rule out nightly stays regardless of city rules.
| Area | General STR picture | What to confirm |
|---|---|---|
| City and County of Denver | Primary residence only | Not an option for investor-owned STRs |
| Aurora and some other suburbs | Investor-owned STRs licensed with conditions | License, occupancy limits, HOA rules |
| Other suburbs | Primary residence only or zone limits in some | City code for the exact parcel |
| Foothills and mountain counties | Varies widely; some caps and waitlists | County or town license availability |
Many Denver investors look west. The mountain towns have strong demand but have also tightened rules: Breckenridge and Estes Park, for example, limit new STR licenses in residential areas, and several towns and counties use caps, waitlists or license fees that change often. Some unincorporated county areas and smaller foothills towns still issue licenses more freely.
Before you buy, confirm license availability for the specific parcel, whether licenses transfer on sale, local lodging and sales taxes, and any town real estate transfer tax. Some mountain towns charge transfer taxes that Denver does not.
This example is illustrative and not a quote. An investor buys a three-bedroom cabin in a foothills county area that currently issues STR licenses, for $725,000. A third-party projection estimates $64,800 a year, about $5,400 a month.
At 75% LTV the loan is $543,750. Estimated principal and interest on a 30-year term is about $3,709. Property taxes are about $300 a month and insurance, priced higher for wildfire exposure, about $350. The total payment is about $4,359 and the DSCR is about 1.24x.
| Line | Monthly |
|---|---|
| Projected revenue | $5,400 |
| Estimated principal and interest | $3,709 |
| Property taxes | $300 |
| Insurance with wildfire exposure | $350 |
| Total payment | $4,359 |
| DSCR | About 1.24x |
Furnished stays of 30 days or more are a different category from STRs in Denver. Traveling nurses at Denver Health, Presbyterian/St. Luke's and the Anschutz Medical Campus in Aurora, relocating employees and people between homes all rent this way. These properties need Denver's residential rental license and inspection, not an STR license.
As a rough comparison, a furnished two-bedroom in Congress Park bought for $640,000 and rented mid-term at $4,100 a month, with a 75% LTV loan, carries a payment of about $3,723 and a DSCR near 1.10x. This comparison is also illustrative and not a quote. Whether a program uses mid-term income or long-term market rent varies, so ask before you buy.
Front Range insurance has climbed. Hail is common across the metro, and foothills and mountain properties carry wildfire risk that some carriers now decline or price steeply; the 2021 Marshall Fire showed how far a grass fire can spread into suburbs. Get an STR-specific quote, including wildfire coverage where relevant, before you finalize the projection math.
Mountain STRs often have two peaks, ski season and summer, with quieter spring and fall shoulder months. Foothills properties closer to Denver lean on summer hiking, Red Rocks concerts and weekend getaways. Ask for the projection by month and keep reserves for shoulder seasons and road closures.
If you already operate a licensed STR in a suburb or mountain town, a refinance can often use your actual booking history instead of a projection. Twelve months of platform statements and proof that the license is current, and transferable if you might sell, make the file stronger. Cash-out goes up to 75% LTV, and seasoning varies by program.
If a town has changed its rules since you bought, tell us. A property operating under a grandfathered license, or one facing a renewal question, needs a closer look before we size the loan on nightly income.
Send the address, license status or confirmation from the town or county, price, projection or booking history, and insurance quote through the form below, or call (877) 298-1001. If it is a Denver address, we will look at long-term or mid-term options instead.
Generally not. Denver's STR license is limited to the host's primary residence, so investor-owned homes in the city cannot be licensed as short-term rentals.
Some suburbs, such as Aurora, license investor-owned STRs with conditions, and some foothills and mountain areas still issue licenses. Confirm with the specific city, town or county.
Stays of 30 days or more are not short-term rentals under Denver rules. They need the city residential rental license and inspection.
On some programs, yes, using a third-party revenue projection. Some programs discount the projection, so leave room in the ratio.
Several do, including limits on new licenses in residential areas in towns such as Breckenridge and Estes Park. Rules change often, so verify license availability before buying.
Mostly through insurance. Some carriers decline or price high-risk areas steeply, and the premium counts in the DSCR.
The minimum is 620, with LLC borrowers standard and no W-2s or tax returns.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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