Colorado Springs DSCR Loans: Lower Entry, Friendlier STR Rules
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Colorado Springs pairs a lower entry price than Denver with the Front Range's more investor-friendly short-term-rental rules, as long as you respect the 2019 zoning cutoff on non-owner permits.
Can I get a DSCR loan in Colorado Springs?
Yes: 1–4 unit rentals across El Paso County and the surrounding area: Colorado Springs proper, Fountain, Monument, Falcon, and Security-Widefield. The loan qualifies on the property's rent against its full payment; the mechanics live in the Colorado DSCR guide. With medians running roughly $450,850 to $500,000 (Zillow average, with June 2025's median about flat year over year) against Denver's higher entry, Colorado Springs ratios clear 1.0 more readily, which is why first-portfolio investors keep landing here. Confirm current rents with us at the parcel level before you offer.
Is Denver or Colorado Springs better for rental cash flow?
They win differently, and the honest answer depends on what you're optimizing.
| Denver metro | Colorado Springs | |
|---|---|---|
| Median benchmark | ~$590,000–$599,900 (Dec 2025–Mar 2026) | ~$450,850–$500,000 (2025–26) |
| Entry price | Higher; thinner long-term ratios | Lower; clears 1.0 more readily |
| Investor validation | 36.8% of April 2026 SFR sales to entities | Steady, less entity-crowded |
| Non-owner STR | Effectively barred (primary-residence-only) | Allowed with permit, subject to 2019 zoning cutoff |
| Tenant base | Diversified metro economy | Military, defense, aerospace payroll |
Medians dated per figure; sources on the tax guide and city pages. Confirm current figures before you offer.
Our take: Colorado Springs edges it for a cash-flow-first buyer, especially anyone who wants a legal non-owner STR path that Denver simply doesn't offer. Denver wins on market depth and the rent floor that heavy entity buying sets. We run both against your capital and pick with numbers.
Colorado Springs STR permits: owner vs non-owner
Colorado Springs regulates rather than bans, and it draws a sharp line by permit type. An owner-occupied permit (the owner physically occupies the home at least 185 days a year) is allowed in all residential zones, single-family included. A non-owner-occupied permit carries no residency requirement but faces a zoning limit: applications submitted after December 26, 2019 are not permitted in single-family zoning districts (R-E, R-1 6, R-1 9, and single-family PDZ), though non-owner licenses issued before that cutoff in those zones may be grandfathered. The annual fee is $124.95 with a one-year term, and you renew without letting it lapse. Translation for investors: a non-owner STR works cleanly in multi-family and mixed zones, but if you want one in a single-family neighborhood, you're looking for a grandfathered pre-2019 license, not a new application. The statewide picture and every other town: STR rules by city.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I get a DSCR loan in Colorado Springs?
Yes: 1–4 unit rental property across El Paso County. Typical structure is 20–25% down, credit floors around 620–660, and 3–6 months reserves, with the property's rent-to-payment ratio doing the qualifying. LLC vesting at closing is standard, and the lower entry price versus Denver helps the ratio.
Is Denver or Colorado Springs better for rental cash flow?
Colorado Springs usually wins on cash flow: its ~$450,850–$500,000 medians sit below Denver's ~$590,000–$599,900, so the same rent clears a stronger ratio, and it offers a legal non-owner STR path Denver lacks. Denver wins on market depth and the rent floor set by heavy entity buying (36.8% of April 2026 sales).
Does Colorado Springs allow non-owner short-term rentals?
Yes, unlike Denver. Colorado Springs issues both owner-occupied and non-owner-occupied STR permits ($124.95 per year). The limit: non-owner applications submitted after December 26, 2019 can't operate in single-family zoning districts (R-E/R-1), so a new non-owner STR there needs a grandfathered pre-2019 license. Owner-occupied permits are allowed in all residential zones.
What does a Colorado Springs STR permit cost?
$124.95 per year, on a one-year term you renew without lapse (as of July 2026). Owner-occupied permits (owner in the home at least 185 days a year) are allowed in all residential zones; non-owner permits are limited in single-family zones by the December 2019 cutoff. Confirm the current fee and zoning with the city before you buy.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City and county STR rules, tax figures, and filing fees change; verify current requirements with the city or county, the HOA or metro district, your CPA, or a Colorado real estate attorney before you buy. Loans are subject to buyer and property qualification.