DSCR Loans in Colorado
Last updated: May 2026
Colorado attracts a highly educated workforce and benefits from a booming tech and outdoor-recreation economy that keeps rental demand strong along the Front Range. While home prices in Denver have climbed considerably, secondary markets like Colorado Springs and Fort Collins still offer solid cash-flow opportunities for DSCR investors.
Property Tax
0.49%
State Income Tax
4.4% flat
Landlord Friendly
Moderate
Eviction Timeline
30-60 days
Property Taxes in Colorado
Colorado has uniquely low property tax rates thanks to the Gallagher Amendment legacy and the TABOR framework. Denver County averages about 0.52%, El Paso County (Colorado Springs) around 0.47%, and Larimer County (Fort Collins) approximately 0.55%.
Insurance Costs
Typical investment property insurance in Colorado runs $2,750/yr. Wildfire risk along the Front Range foothills and in mountain communities has driven insurance premiums sharply higher in recent years. Hailstorm damage along the I-25 corridor is also a major factor, and some insurers have pulled out of high-risk wildfire zones entirely.
Landlord-Tenant Laws
Colorado recently extended eviction timelines and added new tenant protections. Nonpayment evictions now require a 10-day notice before filing. The state does not have rent control, but recent legislative sessions have debated it, so investors should stay informed. Security deposit rules were tightened in 2024, capping deposits and requiring itemized accounting.
Top Investment Markets in Colorado
Colorado Springs
Military installations (Fort Carson, Peterson SFB, NORAD) provide a deep, reliable tenant base with below-Denver pricing.
Denver
Major metro with strong tech, aerospace, and healthcare sectors; higher entry price but consistent rent growth.
Aurora
Denver suburb with diverse economy anchored by the Anschutz Medical Campus, one of the largest medical campuses in the country.
Fort Collins
College town (Colorado State University) with a growing tech corridor and strong quality-of-life appeal.
Pueblo
Affordable entry point with revitalization underway; rents are modest but purchase prices allow for strong DSCR ratios.
DSCR Considerations in Colorado
Colorado's low property tax rates are a real advantage for DSCR underwriting, helping offset higher insurance costs in fire- and hail-prone areas. Lenders familiar with Colorado often account for elevated insurance when sizing loans. The state's strong in-migration trend supports rent growth projections, which can help newer investors qualify.
Run the numbers for Colorado
Use our free DSCR calculator to see if your Colorado investment property pencils out.
Open DSCR Calculator