1st Advantage MortgageIn Castle Rock, CO, rental investors qualify on the property's rent instead of personal income. The market data behind that: $2,000 median rent, $652,900 median home value and 21% of households renting.
Local data for Castle Rock investors
For Castle Rock, the latest five-year ACS shows a median gross rent of $2,000 (about 14% above the Colorado median of $1,761) and a median owner-occupied value of $652,900 (about 21% above the Colorado median of $539,400). By the simple measure of annual rent over home value, Castle Rock sits at 3.7%, a thin gross ratio, which tells you purchase prices are high relative to rent. Lenders do not underwrite a ratio like that, but investors use it to decide where to look first.
| Indicator | Colorado | Castle Rock | Difference |
|---|---|---|---|
| Share in 2-4 unit buildings | 4.7% | 1.3% | -72% |
| Share of homes detached | 61.4% | 73.7% | +20% |
| Long commuters, 45 min plus | 14.1% | 22.0% | +56% |
| Degree holders, age 25+ | 45.7% | 55.9% | +22% |
| Workers on their own account | 11.3% | 8.9% | -21% |
| Renters paying 30%+ of income | 52.9% | 62.5% | +18% |
| Units sitting vacant | 8.3% | 3.2% | -61% |
| Typical construction year | 1988 | 2007 | |
| Annual rent divided by value | 3.9% | 3.7% | -6% |
| Households that rent | 33.8% | 21.2% | -37% |
| Tax as a share of home value | 0.48% | 0.56% | +15% |
| Annual property tax bill, median | $2,602 | $3,635 | +40% |
| Household income, median | $95,470 | $145,197 | +52% |
| Typical owner-occupied value | $539,400 | $652,900 | +21% |
| Residents (Census estimate) | 5,862,189 | 79,123 |
The renter share of 21.2% (well below the Colorado median of 34%) tells you most neighbors are owners, so rental demand is real but narrower than in a renter-heavy city. The median household brings in $145,197 (well above the Colorado median of $95,470), with 62% of renters paying 30 percent or more of income toward rent.
Property types and condition in Castle Rock
Castle Rock is dominated by detached homes (74% of units), which keeps most rental income tied to house comparables and puts maintenance squarely on the owner. Median year built is 2007, which means newer stock, lower near-term repair risk and many properties inside associations.
Roughly 3% of units in Castle Rock sit vacant, and the share of rentals available for rent is 4.0% at the survey's snapshot.
How investors should read Castle Rock
A 3.7% gross ratio leaves little margin in Castle Rock. Every dollar of insurance, tax and association dues matters, and some deals work only with lower leverage. Newer housing keeps maintenance predictable, which is helpful for out-of-town owners. Because only 21% of households rent, vacant units can take longer to lease, and location relative to employers or campuses matters more.
Taxes and risk in Castle Rock
Property taxes in Castle Rock run a median $3,635 a year for owners, well above the Colorado median of $2,602. As a share of median value, that is about 0.56%. At the median rent that tax bill takes roughly 15% of a year's rent before insurance, dues or interest.
Douglas County carries a relatively moderate overall rating in FEMA's National Risk Index, where lightning (very high), winter weather (very high) and hail (relatively high) rank highest.
| Hazard in Douglas County, FEMA index | Level |
|---|---|
| Wildfire exposure | Relatively High |
| Hail exposure | Relatively High |
| Winter weather exposure | Very High |
| Lightning exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Flood risk in Castle Rock is parcel by parcel: check the address on FEMA's flood map service, because a mapped high-risk zone means required flood cover and a heavier payment.
What the Castle Rock medians allow
Take the median rent ($2,000), subtract median taxes spread over twelve months ($303), and you have $1,697 of room at a 1.00 ratio. A lender asking for 1.25 cuts that to $1,297. Real quotes for the address decide the rest.
Legal checks before a Castle Rock purchase
Rental registration, inspection and nightly-stay rules differ by city, and we have not verified Castle Rock's from a municipal source. A short call to the city and Douglas County before you make an offer is cheap insurance. Guests who book by the night in Castle Rock are taxed under state law as follows. 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.
On deposits, Colorado law (C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)) says: 2 months' rent (since Aug 7, 2023). That figure belongs in your Castle Rock pro forma as cash you hold, never as rent. Colorado gives a landlord 30 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist. On rent control, No; counties and municipalities are prohibited from enacting rent control (C.R.S. 38-12-301).
How Castle Rock stacks up against its neighbors
Among the nearby markets above, Aurora has the lowest median home value at $469,100 and Centennial the highest at $658,100, against $652,900 in Castle Rock.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Lakewood | 42% | $2,724 | $574,400 | 156,583 | $1,806 |
| Aurora | 38% | $2,457 | $469,100 | 394,432 | $1,835 |
| Centennial | 19% | $3,588 | $658,100 | 108,201 | $2,148 |
| Parker | 28% | $3,568 | $646,300 | 61,783 | $2,096 |
| Castle Rock | 21% | $3,635 | $652,900 | 79,123 | $2,000 |
What fills Castle Rock rentals
About 8.9% of Castle Rock workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. On the workforce side, government workers are about 12% of employment, 56% of adults hold a bachelor's degree or higher and 22% of commuters travel 45 minutes or more.
On the logistics side, interstate access via I-25 and air service through Denver International Airport are noted for Castle Rock.
From a Castle Rock listing to a loan
Before you offer on a Castle Rock property, test the ratio in the calculator, then apply now or request a DSCR quote.
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Where these facts come from
- Wikipedia: Castle Rock, Colorado
- Text of C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026) for Castle Rock landlords
- Colorado Department of Revenue, rooms and accommodations
- American Community Survey tables, Colorado
- FEMA hazard ratings for Douglas County
Castle Rock's figures are ACS estimates covering 2020 to 2024 and are not exact counts. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Colorado sections. Reviewed in October 2026, with no promise that rules have stayed put.
Quick file checklist
Ask the seller for twelve months of utility bills and any lease on the Castle Rock property, confirm who pays water, trash and lawn care, and get the insurance quote before the inspection period ends so the ratio is tested on real numbers.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent do DSCR lenders use for a Castle Rock rental?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Castle Rock renters report a median of $2,000.
How much payment fits the median Castle Rock rent?
They count in full. A 1.25 ratio on $2,000 of rent permits a payment near $1,600, and median Castle Rock taxes take about $303 of it each month.
Are Castle Rock property taxes high for Colorado?
Castle Rock owners report a median $3,635 in annual real estate taxes, an effective 0.56% (Colorado: 0.48%). Your own bill depends on the assessed value after purchase.
Is short-term rental income allowed for a Castle Rock DSCR loan?
It depends on the program and on local law. A Castle Rock owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
How much deposit can a Castle Rock landlord collect?
Start with C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026). The limit: 2 months' rent (since Aug 7, 2023). Return window: 30 days. Talk to a Colorado attorney for a lease form that matches.
What does FEMA say about hazard risk near Castle Rock?
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.
Can a company be the borrower on a Castle Rock purchase?
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.