1st Advantage MortgageLakewood is a CO market where the rent-to-payment ratio decides the loan. Median rent is $1,806, median home value is $574,400 and 42% of households rent.
Lakewood rental market at a glance
A DSCR lender in Lakewood is comparing a rent against a payment, and the citywide benchmarks are a median gross rent of $1,806 and a median home value of $574,400. The rent figure is close to the Colorado median of $1,761. Annual median rent is about 3.8% of the median home value in Lakewood. That is a lean ratio that leaves little room for taxes, insurance and dues, but it blends every housing type, so a house on a specific street needs its own rent comparables.
| Indicator | Colorado | Lakewood | Difference |
|---|---|---|---|
| Persons per household | 2.42 | 2.20 | |
| Share of homes detached | 61.4% | 46.1% | -25% |
| Long commuters, 45 min plus | 14.1% | 12.9% | -9% |
| Degree holders, age 25+ | 45.7% | 45.3% | -1% |
| Workers on their own account | 11.3% | 10.8% | -5% |
| Renters paying 30%+ of income | 52.9% | 55.2% | +4% |
| Units sitting vacant | 8.3% | 5.1% | -39% |
| Annual rent divided by value | 3.9% | 3.8% | -4% |
| Households that rent | 33.8% | 41.9% | +24% |
| Tax as a share of home value | 0.48% | 0.47% | -2% |
| Annual property tax bill, median | $2,602 | $2,724 | +5% |
| Household income, median | $95,470 | $89,792 | -6% |
| Typical owner-occupied value | $539,400 | $574,400 | +6% |
| Typical monthly rent | $1,761 | $1,806 | +3% |
| Residents (Census estimate) | 5,862,189 | 156,583 |
About 41.9% of occupied homes in Lakewood are renter-occupied, about 24% above the Colorado median of 34%, a balanced mix of owners and tenants. Household income runs a median $89,792 (close to the Colorado median of $95,470), while 55% of renters spend 30 percent or more of income on housing.
What Lakewood investors are buying
The housing stock in Lakewood leans toward shared walls: 42% of units are in multi-unit buildings, and 7% sit in small two to four unit properties. Median year built is 1977, so many homes are reaching the age when major systems need replacing.
Roughly 5% of units in Lakewood sit vacant, and the share of rentals available for rent is 5.0% at the survey's snapshot.
Underwriting angles in Lakewood
With only 3.8% gross yield, Lakewood buyers often rely on appreciation as part of the plan, and a lender will want the ratio to clear without it. Median build year 1977 puts the typical Lakewood rental in its second set of major systems. With about 42% of households renting, Lakewood has enough tenants to support investors without being dominated by them.
Taxes and risk in Lakewood
In Lakewood the median tax bill for an owner-occupied home is $2,724, or about 0.47% of value (Colorado overall: 0.48%). That bill is close to the Colorado median of $2,602. At the median rent that tax bill takes roughly 13% of a year's rent before insurance, dues or interest.
The federal National Risk Index scores Jefferson County relatively high for overall risk, led by hail (very high), lightning (very high) and winter weather (very high). That is a county-level view, so check the flood map for the exact parcel.
| Hazard in Jefferson County, FEMA index | Level |
|---|---|
| Wildfire exposure | Relatively High |
| Winter weather exposure | Very High |
| Lightning exposure | Very High |
| Hail exposure | Very High |
| Social vulnerability score | Very Low |
| Annualized loss estimate | Relatively High |
| Composite risk | Relatively High |
Standard landlord policies usually exclude flood, and coastal ones can add a separate wind deductible, so ask the agent for Lakewood exclusions before trusting a premium estimate.
Rent math for Lakewood buyers
For a rough fit test, treat $1,806 as the rent and $227 as the monthly tax. The payment cannot exceed $1,806 at a 1.00 ratio, so $1,579 is left after taxes for interest, principal, insurance and any association dues, shrinking to $1,218 if the lender wants 1.25.
Landlord and short-term rental rules in Lakewood
We have not confirmed a city-specific rental registration or nightly-stay permit program for Lakewood, so check with the city and with Jefferson County before you buy, and look at any HOA or condominium rules that can be stricter than the city's. State tax treatment of short stays, as it applies to Lakewood. 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.
Before you set the Lakewood rent, know that Colorado caps the security deposit this way: 2 months' rent (since Aug 7, 2023) (C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)). Deposits come due back within 30 days of the tenant leaving, and Lakewood owners should document condition at both ends of the lease. On rent control, No; counties and municipalities are prohibited from enacting rent control (C.R.S. 38-12-301).
Lakewood next to nearby cities
Prices in the comparison range from $532,400 in Westminster to $658,100 in Centennial, with Lakewood at $574,400.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Centennial | 19% | $3,588 | $658,100 | 108,201 | $2,148 |
| Denver | 51% | $2,751 | $616,000 | 718,877 | $1,831 |
| Westminster | 38% | $2,614 | $532,400 | 115,484 | $1,882 |
| Arvada | 25% | $3,223 | $632,600 | 122,634 | $1,888 |
| Lakewood | 42% | $2,724 | $574,400 | 156,583 | $1,806 |
Employers and institutions near Lakewood rentals
About 10.8% of Lakewood workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. The same survey shows government workers are about 13% of employment, 45% of adults hold a bachelor's degree or higher and 13% of commuters travel 45 minutes or more.
Lakewood's principal employers for 2023 are given as Denver Federal Center, Jefferson County School District R-1, State of Colorado, St. Anthony Hospital and Terumo BCT. Rental demand follows jobs, so a property within an easy commute of one of them has a natural tenant pool. Higher education in and around Lakewood includes Colorado Christian University, Rocky Mountain College of Art and Design and Red Rocks Community College, which feeds demand for student, staff and faculty housing near campus.
Moving from numbers to a Lakewood loan
Before you offer on a Lakewood property, test the ratio in the calculator, then apply now or request a DSCR quote.
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Sources
- FEMA risk data used for Lakewood
- Encyclopedia entry for Lakewood
- Deposit statute: C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)
- Colorado Department of Revenue, rooms and accommodations
- American Community Survey tables, Colorado
Numbers for Lakewood come from the Census Bureau's 2020 to 2024 ACS and are survey estimates. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Colorado sections. Verified October 2026. Ordinances and statutes change, so confirm before acting.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
Lease or market rent: what counts in Lakewood?
Expect to supply a lease, or let the appraiser's rent schedule stand in for one; the Lakewood median rent of $1,806 is context and not a substitute.
Do taxes and insurance count in the Lakewood DSCR ratio?
They count in full. A 1.25 ratio on $1,806 of rent permits a payment near $1,445, and median Lakewood taxes take about $227 of it each month.
Are Lakewood property taxes high for Colorado?
The median bill is $2,724, an effective rate near 0.47%. Because Jefferson County may reassess at sale, use an estimate on the new price when you run the ratio.
Will a lender count nightly rental income at a Lakewood property?
Where lender guidelines allow it, yes, with platform history or a market projection. First confirm that Lakewood and any HOA permit stays under 30 days, and that you can register for Colorado lodging tax.
Are there deposit limits for Lakewood rentals?
Under C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026): 2 months' rent (since Aug 7, 2023). The deposit is due back within 30 days of move-out. Check the statute and your lease before collecting.
Is flood or storm risk a concern for a Lakewood rental?
At the county level FEMA calls overall risk relatively high. Insurance, not the index, shows up in the ratio, so price a policy for the Lakewood address.
How do LLC closings work for Lakewood rentals?
An individual can borrow too. If you prefer an entity for the Lakewood purchase, expect to provide formation documents and sign a personal guaranty.