1st Advantage MortgageColorado Springs allows nightly rentals only for owner-occupied homes that meet a residency test, so investors there underwrite on long-term rent.
Population: 493,554 (U.S. Census Bureau city and town estimate, July 1, 2024).
Reading the Colorado Springs rental market
Colorado Springs renters follow the military at Fort Carson, Peterson and Schriever Space Force Bases and the Air Force Academy, the aerospace and defense sector and healthcare. Prices are mid-to-high for the region, and military turnover and PCS cycles shape lease timing.
Colorado Springs areas investors compare
- Old North End and Downtown. historic homes and small apartment buildings
- Briargate and Northgate. newer northern subdivisions
- Pikeview and Rockrimmon. established foothills neighborhoods
- Southeast Colorado Springs. lower-priced single-family stock
- Manitou Springs edge. tourist-oriented foothills town
Licensing, registration and nightly-stay rules
Colorado Springs permits nightly rentals in owner-occupied homes only, where the property must be the owner's primary residence and the owner must occupy it at least 185 days a year, with exceptions for military. Applications need two proofs of primary residence, a notarized affidavit, liability insurance and the hosting platform listing. Non-owner-occupied nightly rentals fall outside that permit, so underwrite on long-term rent.
Local rules checked October 2026 against: Colorado Springs short-term rentals, Colorado Springs code 7.5.510. Rules change, so confirm with the city before you rely on them.
What to price into the payment
Hail is a regular insurance factor along the Front Range, and wildfire risk affects insurance availability near the foothills, so ask for quotes. Metro district taxes can raise property tax bills in newer neighborhoods.
Local data for Colorado Springs investors
Two Census medians frame the Colorado Springs rental market: gross rent of $1,648 a month, which is close to the Colorado median of $1,761, and a home value of $452,600, which is about 16% below the Colorado median of $539,400. Dividing a year of median rent by the median home value gives a gross rent-to-value ratio of 4.4%, a lean ratio that leaves little room for taxes, insurance and dues. It mixes apartments and houses, so treat it as a compass and not as the number for any one property.
| Indicator | Colorado | Colorado Springs | Difference |
|---|---|---|---|
| Households that rent | 33.8% | 39.1% | +16% |
| Tax as a share of home value | 0.48% | 0.39% | -19% |
| Annual property tax bill, median | $2,602 | $1,765 | -32% |
| Typical monthly rent | $1,761 | $1,648 | -6% |
| Persons per household | 2.42 | 2.36 | |
| Share in 2-4 unit buildings | 4.7% | 5.9% | +25% |
| Share of homes detached | 61.4% | 60.4% | -2% |
| Long commuters, 45 min plus | 14.1% | 8.1% | -42% |
| Degree holders, age 25+ | 45.7% | 42.7% | -6% |
| Workers on their own account | 11.3% | 9.7% | -14% |
| Renters paying 30%+ of income | 52.9% | 54.3% | +3% |
| Units sitting vacant | 8.3% | 4.2% | -50% |
| Typical construction year | 1988 | 1986 | |
| Annual rent divided by value | 3.9% | 4.4% | +12% |
| Residents (Census estimate) | 5,862,189 | 487,887 |
The renter share is 39.1% in Colorado Springs, about 16% above the Colorado median of 34%, a sizable rental market. Median household income of $84,818 (about 11% below the Colorado median of $95,470) sets the ceiling for rent growth, and 54% of renters already spend 30 percent or more of income on rent.
Housing mix and age in Colorado Springs
A buyer in Colorado Springs can choose among houses (60% of units), small multifamily (6%) and mid-sized apartment buildings (12%), which makes the property type the first underwriting decision. A median build year of 1986 puts most of the stock in its second round of big repairs, and an inspector will show what remains.
About 4% of Colorado Springs's housing units are vacant, and the rental vacancy rate (units for rent against rented plus for-rent units) works out to 3.8%.
How investors should read Colorado Springs
Colorado Springs's 4.4% rent-to-value ratio is on the lean side, so expect lenders to ask for more cash down on a typical single-family purchase and to scrutinize insurance and tax estimates closely. With a 1986 median build year, the question for each property is when the roof and HVAC were last replaced. Renters are 39% of households, which gives investors a real tenant base to market to.
Insurance, tax and flood context for Colorado Springs
Property taxes in Colorado Springs run a median $1,765 a year for owners, well below the Colorado median of $2,602. As a share of median value, that is about 0.39%. That is about 9% of a year of median rent gone to taxes before the loan is even counted.
The federal National Risk Index scores El Paso County relatively moderate for overall risk, led by winter weather (very high), lightning (very high) and wildfire (relatively high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in El Paso County, FEMA index | Level |
|---|---|
| Hail exposure | Relatively High |
| Wildfire exposure | Relatively High |
| Lightning exposure | Very High |
| Winter weather exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively High |
| Composite risk | Relatively Moderate |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Colorado Springs exclusions before trusting a premium estimate.
Running the numbers in Colorado Springs
Worked through with this city's own medians: rent of $1,648 against taxes of about $147 a month leaves $1,501 for principal, interest, insurance and dues at a 1.00 ratio, and $1,171 at a 1.25 ratio. That arithmetic is the whole game, and the real rent and quotes for your address replace these medians.
Registration, deposits and nightly stays in Colorado Springs
State tax treatment of short stays, as it applies to Colorado Springs. Colorado requires a sales tax license for an owner who rents rooms or accommodations, with tax generally due on stays under 30 consecutive days, and a marketplace that collects for the owner typically covers state, local and lodging taxes, while county or city lodging filings can be separate.
Colorado limits what a Colorado Springs owner may hold as a deposit: 2 months' rent (since Aug 7, 2023). The statute is C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026). The return clock runs 30 days from move-out in Colorado, so Colorado Springs landlords should keep move-in photos and repair receipts. Rent regulation: No; counties and municipalities are prohibited from enacting rent control (C.R.S. 38-12-301).
Where Colorado Springs sits among nearby places
Set Colorado Springs ($452,600 median value) beside its neighbors: Pueblo comes in lowest at $247,200, and Centennial tops the group at $658,100.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Centennial | 19% | $3,588 | $658,100 | 108,201 | $2,148 |
| Parker | 28% | $3,568 | $646,300 | 61,783 | $2,096 |
| Pueblo | 39% | $1,246 | $247,200 | 111,561 | $1,082 |
| Castle Rock | 21% | $3,635 | $652,900 | 79,123 | $2,000 |
| Colorado Springs | 39% | $1,765 | $452,600 | 487,887 | $1,648 |
Who rents in Colorado Springs
Self-employment accounts for 9.7% of Colorado Springs's workforce, so many local investors earn income that a standard payroll-based mortgage underwrites poorly. Looking at who fills the rentals, government workers are about 16% of employment, 43% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
The Colorado Springs area is home to University of Colorado Colorado Springs, Pikes Peak State College, Colorado College and Colorado Christian University. Students and employees at schools like these are a recurring source of rental demand. Colorado Springs offers interstate access via I-25 and air service through Colorado Springs Municipal Airport and Colorado Springs Airport, details that affect commute times and how easily a distant investor can inspect a property.
Putting a Colorado Springs file together
Bring the Colorado Springs numbers to a loan officer: the rent, the taxes, the insurance and your reserves. Apply online or ask for a quote, and use the calculator to preview the ratio.
More Colorado markets
- All Colorado DSCR loans
- DSCR loans in Castle Rock, CO
- DSCR loans in Pueblo, CO
- DSCR loans in Parker, CO
- DSCR loans in Centennial, CO
- Every market we cover
References
- FEMA risk data used for Colorado Springs
- Wikipedia article, Colorado Springs, Colorado
- Colorado Springs landlords: see C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
- Colorado Department of Revenue, rooms and accommodations
- Census Bureau ACS 5-year 2020 to 2024 tables
We took the Colorado Springs data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Colorado sections. Last reviewed October 2026; the city and county have the final word on Colorado Springs rules.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Can I run an Airbnb in a Colorado Springs investment property?
Not under the city's owner-occupied permit, which requires the home to be your primary residence for at least 185 days a year, with military exceptions.
How is Colorado Springs rent documented for a DSCR loan?
Underwriters take the lease if one exists and compare it with the appraisal's rent estimate; the lower figure often governs. Colorado Springs median rent is $1,648.
Do taxes and insurance count in the Colorado Springs DSCR ratio?
The denominator is the whole housing payment. Using Colorado Springs's median rent of $1,648, a ratio of 1.25 allows $1,318, and a ratio of 1.00 allows all $1,648.
What tax bill should I expect on a Colorado Springs rental?
About $1,765 a year at the median, which is 0.39% of value and well below the Colorado median of $2,602. Reassessment after a purchase can move that number, so get an estimate for the actual price.
Is short-term rental income allowed for a Colorado Springs DSCR loan?
Yes on programs built for it, once the use is lawful in Colorado Springs. Gather twelve months of statements or a third-party projection, and have Colorado tax registration squared away.
Are there deposit limits for Colorado Springs rentals?
Landlords in Colorado Springs follow C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026). Limit: 2 months' rent (since Aug 7, 2023). Return deadline: 30 days from move-out.
Is flood or storm risk a concern for a Colorado Springs rental?
Overall risk is rated relatively moderate for the county. Because the rating covers a whole county, look up the specific property on FEMA's flood map before you offer.
Is an entity required for a CO DSCR loan?
It is optional. Lenders will close in a properly formed LLC and generally want the members to guarantee. Ask your accountant how a CO entity would be taxed.