Rental / DSCR in Pueblo

On gross yield, yes, and by a wide margin. Comparing metro-level Zillow rent and value indexes for July 2026, Pueblo works out to about a 5.80% gross yield, against 4.65% in Colorado Springs and 3.91% in Denver. That is our arithmetic on published index levels, not a cap rate: it has no expense line in it, and Pueblo's city and district mill levies (see below) take a real bite once you build the pro forma. Treat it as the reason Pueblo is worth underwriting, not as a net return.

Mostly single-family, and comparatively easy to keep filled. As of 2023, detached single-family homes made up about 53% of all renter-occupied units in the Pueblo metro, against 26% in buildings of five or more units, so a DSCR investor here is financing the product tenants are already renting rather than competing against apartment stock. Professionally managed single-family rentals were running 2.9% vacant in January 2025, against 6.7% for apartments, and HUD's own read of the metro called the rental market slightly tight overall.

It depends on which side of a line the parcel sits on, so pull it before you lock the deal. A property inside Pueblo city limits carries the City's 15.633-mill levy. One in Pueblo West carries the Pueblo West Metropolitan District's 20.230-mill levy instead, a rate the district says has not moved in over thirty years. A property in unincorporated Pueblo County outside either carries neither. Two houses at the same rent and the same purchase price can carry a materially different tax line in the DSCR calculation depending on that boundary, so get the parcel's actual mill levy from the Pueblo County Assessor before you underwrite, and confirm the total bill with your CPA or tax advisor.

We'll consider it, but confirm the city's rules yourself before you count on that income. Secondary sources describe a City of Pueblo short-term rental ordinance dating to 2018, with permitting run through the city's sales tax office, but our research could not confirm the fee, any cap, or a primary-residence requirement against the code itself, so treat those specifics as unverified. Whether unincorporated Pueblo County regulates short-term rentals at all was not established either. Check current requirements with the City of Pueblo or Pueblo County before you underwrite short-term income on a Pueblo DSCR file.

More than the state or national average, on the most recent data we have. 1.6% of Pueblo metro home loans were 90-plus days delinquent, in foreclosure, or in REO as of February 2025, up from 1.1% a year earlier, and the metro has run above both Colorado and the US on that measure since July 2023. That is a source of purchase-and-hold candidates for a DSCR rate/term or cash-out refinance after rehab, not a guarantee any specific property will trade below market.

A DSCR (debt service coverage ratio) loan qualifies on the property's rental income instead of your personal income, so there are no W-2s or tax returns required. We compare the rent, from a signed lease or the appraiser's market-rent estimate, against the monthly payment. A DSCR of 1.00 means the rent covers the payment, and we lend with a DSCR as low as 0.75.

Our rental program starts around 5.50% interest-only, with 30-year fixed and 5/7/10-year ARM options, for a single property or a whole portfolio. The lowest pricing goes to strong credit, lower leverage, and a DSCR above 1.20; your quote depends on the file and is subject to underwriting.

We finance up to 80% loan-to-value on a purchase, with rate-and-term and cash-out refinances available, on loan amounts from $100K to $3M. Cash-out leverage is typically a little lower than purchase. The property's cash flow and your credit set your final leverage.

We start at 640, and the best pricing goes to strong credit. Because the loan qualifies on the asset, your score affects your rate and leverage more than whether you are approved.

Yes, short-term rentals are considered. We can underwrite using market or projected rents, and the property still needs to meet our DSCR. Tell us how the property is operated so we can structure it correctly.

Long-term rental loans usually carry a prepayment penalty, commonly a step-down such as 5/4/3/2/1. We offer flexible prepay structures, including buying down to a shorter penalty for a slightly higher rate, and we will lay out the options on your term sheet.