Most of the investors I work with on Springs deals already own 2–4 properties elsewhere and are looking for the file that actually cash-flows. According to Realtor.com's 2026 Top Housing Markets report, Colorado Springs ranks in the top 20 metros nationally for projected rent growth, and BLS job-growth data puts El Paso County's 5-year employment trajectory above the Colorado state average. Industry data from the Mortgage Bankers Association and CFPB consumer rental-market tracking confirms Springs as one of the steadier non-volatile metros in the Mountain West.

Market at a glance

Estimates drawn from Zillow Research, Realtor.com Market Hotness, and BLS data as of April 2026. Submarket variance is significant — treat these as directional.

The military stability factor

Colorado Springs is the most military-dependent large metro in the western United States. Fort Carson, Peterson Space Force Base, Schriever Space Force Base, the Air Force Academy, and NORAD/USNORTHCOM collectively anchor tens of thousands of BAH-receiving renters inside El Paso County. According to Department of Defense BAH tables, E-5 with dependents in the Colorado Springs MHA receives one of the more predictable housing allowances in the DoD — a number published publicly and adjusted annually. A few things that matter for DSCR investors:

• Rent is subsidized and predictable. BAH adjusts annually and is published publicly. Tenants can afford the rent because the DoD pays it.
• Turnover is structural, not economic. PCS cycles every 2–4 years mean a steady stream of qualified, relocating renters — even when private-sector rental demand softens.
• Move-in ready matters. Military tenants reach Colorado Springs with a narrow window to secure housing. Properties that are rent-ready day one close faster.

Who is buying in Colorado Springs

1. First-time DSCR investors who can't make the math work in Denver and find ratios of 1.15–1.30 on entry-level SFR here. Most of the first-time DSCR files I close are in this bucket.
2. Portfolio builders stacking 5–10 units in East Colorado Springs and Security-Widefield for reliable workforce/military income.
3. Retiring or transitioning military families buying their first rental in a market they know well. According to VA loan origination data, Springs sees one of the highest per-capita rates of veteran real-estate investment in the country.

The cost of waiting on Springs inventory

Three specific ways I have watched investors lose money by sitting on Colorado Springs deals too long:

• Rent comp drift. Springs rent growth of 2–3% per year is modest but real. Waiting 18 months on a decision means the DSCR math that penciled at 1.12 today only pencils at 1.18 later — but the entry price has also moved. You were not saving by waiting.
• HOA rental-cap saturation. Several of the newer HOAs in East Colorado Springs have hit their investor caps in the last 24 months. If you wait to buy into one of those, you are effectively locked out of that HOA's rental eligibility until a sale restarts the count.
• Zoning tightening. Colorado Springs STR rules have tightened repeatedly since 2022. Every policy cycle raises the bar on non-owner-occupied STR eligibility. A property that was a STR candidate two years ago may not be one now.

DSCR-friendly submarkets

• East Colorado Springs (Powers corridor, Cimarron Hills). Newer stock, solid tenant pool from Peterson and Schriever. Ratios 1.10–1.25.
• Fountain / Security-Widefield. Fort Carson-adjacent workforce housing. Lower entry, strong ratios, higher tenant turnover.
• Old Colorado City / Westside. Older bungalows, character rentals, short-term-rental opportunity where zoning allows.
• North Colorado Springs (Briargate, Pine Creek). Higher-end SFR, lower ratios, strong long-term tenant quality.
• Widefield / Stetson Hills. Family-rental workhorse submarkets, frequent 1.15+ DSCR.

A sample pencil scenario

Consider a 4-bed / 2-bath SFR near Powers and Dublin at an approximate $395K purchase price. Market rent lands around $2,250. Taxes are meaningfully lower than Denver metro (El Paso County's mill levy is friendlier) and insurance is in line. Under typical underwriting assumptions, the resulting DSCR on a standard buyer profile typically lands in the 1.10–1.15 range.

That qualifies comfortably on most programs. With a stronger credit profile and a different down-payment election, the same property often pencils to 1.25 for best pricing. Program parameters vary by qualifying profile — call us to run the current scenario for your file.

Regulatory environment

Short-term rentals

Colorado Springs allows both owner-occupied and non-owner-occupied STRs with a city license, but the non-owner-occupied path is capped in certain zones and effectively closed in the downtown overlay. Manitou Springs has stricter rules. If you are buying for STR, confirm the exact parcel's zoning and license availability before you write the offer. Long-term rental is universally permitted.

Long-term rental regulation

El Paso County is among the more landlord-friendly jurisdictions in Colorado. Colorado's statewide warranty-of-habitability and just-cause eviction rules apply, but there is no rental-license requirement at the city level (as of April 2026), no rent control, and eviction timelines are among the faster in the state.

HOA prevalence

Large swaths of newer Colorado Springs inventory are in HOAs. Many HOAs restrict rentals (investor caps, minimum-lease terms, or outright bans). Always pull the HOA covenants during due diligence — do not wait for the title commitment. I have watched an East Springs deal die at closing because the HOA had quietly hit its rental cap the week before.

Growth signals

• Space Force. Colorado Springs is the Space Force's primary home. Continued investment by the DoD is a structural tailwind for the next decade-plus.
• Population. El Paso County is Colorado's second-largest county and has grown steadily for the last 20 years. According to U.S. Census ACS data, the county is still adding residents in 2026.
• Jobs. Beyond military: healthcare (UCHealth, Centura), aerospace (defense contractors), and a growing cybersecurity cluster.
• Affordability arbitrage. Denver renters priced out of the city increasingly relocate south, supporting Colorado Springs rent growth even when Denver's softens.

What not to buy in Colorado Springs

• HOAs with aggressive rental caps. Always confirm rental eligibility before contract.
• Properties marketed as pure STR without verifying zoning. Non-owner-occupied STR is not universally permitted.
• The farthest-out exurbs (Calhan, Peyton, far east). Cash flow looks great on paper, but rent collection and vacancy risk eat the ratio.
• Deferred-maintenance properties priced for retail. The market is balanced enough now to negotiate — don't overpay for a rehab project.

Jon Howard's MLO take

Colorado Springs is where I send first-time DSCR investors more often than anywhere else on the Front Range. The ratios pencil without heroics. Tenant demand is structural. The regulatory frame is predictable. And the entry price is still 15–25% below Denver metro for comparable inventory.

My recommendation: start with one property in East Colorado Springs or Security-Widefield at a 1.15+ DSCR, use the experience to stabilize a management routine (self-manage or pick a proven PM), and by property three you have a repeatable machine. For portfolio builders, it is probably the best cash-flow market in Colorado right now.

Apply in Colorado Springs

I'm a Colorado-licensed MLO (NMLS #2587985) and I write DSCR files in El Paso County every week. Bring me an address, a rent (or projected rent), and your approximate credit band and you'll have a pricing indication inside 24 hours.