DSCR loans in Centennial, CO

Centennial rental market at a glance

Median gross rent in Centennial: $2,148, about 22% above the Colorado median of $1,761. Median owner-occupied home value: $658,100, about 22% above the Colorado median of $539,400. Those are citywide medians, so an individual address can sit well on either side of them. Put the two medians together and Centennial shows a gross yield of 3.9%, a thin gross ratio, which tells you purchase prices are high relative to rent. Because the rent number covers apartments as well as houses, expect single-family rentals to land above or below it.

Centennial is an owner-heavy city: 81% of households own, and renters are just 19.4% (well below the Colorado median of 34%). Tenant demand is narrower and concentrated in pockets. Median household income of $131,928 (well above the Colorado median of $95,470) sets the ceiling for rent growth, and 47% of renters already spend 30 percent or more of income on rent.

Housing stock and vacancy in Centennial

Detached houses are 73% of all units in Centennial. That mix favors single-family rentals and makes small multifamily scarcer and, sometimes, more valuable. Homes here date to 1983 at the median, which is old enough to need system replacement but modern enough to avoid the worst surprises.

Centennial reports 2% of units vacant and a rental vacancy rate of 3.3%, a measure of how quickly a listed unit might lease.

What stands out in Centennial

A gross yield of 3.9% means Centennial is a market where purchase prices run ahead of rent, so a 1.0 ratio generally takes a larger down payment or a property priced below the local median. Housing here is neither new nor ancient, so condition varies widely from block to block and the inspection tells you more than the median. An owner-heavy market (81% owner-occupied) means many tenants are renting by choice rather than necessity, so condition and schools matter to them.

What costs can do to a Centennial ratio

Homeowners in Centennial paid a median $3,588 in real estate taxes, well above the Colorado median of $2,602, an effective rate near 0.55% of home value against 0.48% statewide. Compared with annual median rent, the tax line is about 14%.

For hazards, FEMA's National Risk Index puts Arapahoe County at a relatively moderate overall rating, and its top-ranked hazards are hail (very high), lightning (very high) and tornadoes (relatively high).

In Arapahoe County, as anywhere, the premium is part of PITIA, which means a quote with the roof, age and flood zone of the actual Centennial address belongs in your file early.

Rent math for Centennial buyers

Try the math at the medians. With rent at $2,148 and taxes near $299 a month, a 1.00 DSCR leaves $1,849 for everything else in the payment, a 1.20 ratio leaves $1,491, and a 1.25 ratio leaves $1,419. Any real property will differ, but the exercise shows how little room insurance and dues can take.

Rental rules for Centennial, CO

Before you underwrite a Centennial rental, confirm with city hall and Arapahoe County whether landlords must register, pass an inspection or hold a permit, especially for stays under 30 days, because those rules can change what income a lender will count. If you are weighing nightly income in Centennial, the state tax backdrop is this. 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.

For a Centennial lease, the Colorado deposit rule is 2 months' rent (since Aug 7, 2023), as set out in C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026). A Centennial landlord must handle the deposit within 30 days after move-out under Colorado law. Rent regulation: No; counties and municipalities are prohibited from enacting rent control (C.R.S. 38-12-301).

Centennial compared with nearby markets

Aurora's median home value of $469,100 is the group's floor and Castle Rock's $652,900 its ceiling, while Centennial is $658,100.

Employers and institutions near Centennial rentals

Self-employed workers, incorporated or not, make up 11.1% of employed residents, a group that often has irregular tax-return income and a natural fit with rent-based qualification. Looking at who fills the rentals, government workers are about 13% of employment, 63% of adults hold a bachelor's degree or higher and 13% of commuters travel 45 minutes or more.

The largest employers listed for Centennial for 2023 include Comcast, United Healthcare, Arrow Electronics, United Launch Alliance and CommonSpirit Health. Large, stable payrolls like these tend to anchor rental demand near their job sites. Access runs through air service through Centennial Airport, which shapes where commuters want to live and how long a showing takes.

Before you make an offer in Centennial

A good Centennial file has four pieces: rent evidence, a tax estimate, an insurance quote and cash. Preview the ratio in the calculator, then apply or talk to us.

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• Every market we cover

Source links

• FEMA county hazard table
• Background reading: Centennial, Colorado
• Deposit statute: C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
• Colorado tax source: Colorado Department of Revenue, rooms and accommodations
• ACS 2020 to 2024 estimates for Centennial

The Centennial statistics are five-year ACS estimates (2020 to 2024), which have sampling error. Colorado landlord-tenant summaries draw on the RedFlagLease dataset (CC BY 4.0) and the statutes linked above. Our check date is October 2026, so look for newer Centennial rules before you commit.

DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.