1st Advantage MortgageIn Parker, CO, rental investors qualify on the property's rent instead of personal income. The market data behind that: $2,096 median rent, $646,300 median home value and 28% of households renting.
What the numbers say about Parker
The Census Bureau's 2020 to 2024 American Community Survey puts median gross rent in Parker at $2,096, about 19% above the Colorado median of $1,761. Median home value sits at $646,300, which is about 20% above the Colorado median of $539,400. The gross rent-to-value ratio for Parker works out to 3.9% (twelve months of median rent divided by median value), on the low side, so the payment, not the rent, usually decides whether a file clears. The figure combines all rental types with all owner-occupied homes, so it is a screening number and not an appraisal.
| Indicator | Colorado | Parker | Difference |
|---|---|---|---|
| Annual property tax bill, median | $2,602 | $3,568 | +37% |
| Household income, median | $95,470 | $133,369 | +40% |
| Typical owner-occupied value | $539,400 | $646,300 | +20% |
| Typical monthly rent | $1,761 | $2,096 | +19% |
| Share in 2-4 unit buildings | 4.7% | 1.2% | -75% |
| Share of homes detached | 61.4% | 70.0% | +14% |
| Long commuters, 45 min plus | 14.1% | 15.1% | +7% |
| Degree holders, age 25+ | 45.7% | 56.0% | +23% |
| Workers on their own account | 11.3% | 8.3% | -27% |
| Renters paying 30%+ of income | 52.9% | 57.6% | +9% |
| Typical construction year | 1988 | 2004 | |
| Annual rent divided by value | 3.9% | 3.9% | -1% |
| Households that rent | 33.8% | 28.2% | -17% |
| Tax as a share of home value | 0.48% | 0.55% | +14% |
| Residents (Census estimate) | 5,862,189 | 61,783 |
The renter share of 28.2% (about 17% 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. Incomes matter for rent growth: the median household earns $133,369, well above the Colorado median of $95,470, and 58% of renters are already cost-burdened at 30 percent of income or more.
Property types and condition in Parker
Detached single-family homes make up 70% of the housing units in Parker, so most rentals here compete as houses, and rents follow neighborhood and school boundaries more than building type. A median construction date of 2004 points to growth-era housing, where HOA leasing limits and new-build rent comparables are the bigger questions.
The Census counts 3% of Parker housing units as vacant, with a rental vacancy figure of 4.7%.
How investors should read Parker
A 3.9% gross ratio leaves little margin in Parker. Every dollar of insurance, tax and association dues matters, and some deals work only with lower leverage. Median build year 2004 means many properties still have original systems under warranty or well within their lives. Because only 28% of households rent, vacant units can take longer to lease, and location relative to employers or campuses matters more.
Taxes, insurance and hazards in Parker
Tax drag is easy to underestimate. Parker owners report a median $3,568 in annual real estate taxes, well above the Colorado median of $2,602, an effective 0.55% of median home value. In rent terms, the tax bill equals roughly 14% of twelve months of median rent.
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 |
Insurance belongs in the ratio from day one, so get a landlord quote for the Parker address and ask about roof age, wind or hail deductibles and flood cover.
The ratio in Parker dollars
The quick test for Parker: rent of $2,096 divided by a 1.25 ratio allows a total payment of $1,677, and subtracting $297 in monthly taxes leaves $1,379 for the loan, insurance and dues. At 1.00 the allowance is the full $1,799.
What CO law and Parker require of landlords
For Parker, treat local rental rules as an open question to close before you offer. Ask the city and Douglas County about landlord registration, inspections and short-term rental permits, and check association documents too. If you are weighing nightly income in Parker, 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.
Deposit limits are set by statute in Colorado (C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026)), and for Parker landlords the rule reads: 2 months' rent (since Aug 7, 2023). Colorado gives a landlord 30 days after the tenancy ends to return a deposit, an easy deadline to miss without a checklist. Colorado rent regulation summary: No; counties and municipalities are prohibited from enacting rent control (C.R.S. 38-12-301).
Parker compared with nearby markets
Among the nearby markets above, Aurora has the lowest median home value at $469,100 and Centennial the highest at $658,100, against $646,300 in Parker.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Denver | 51% | $2,751 | $616,000 | 718,877 | $1,831 |
| Aurora | 38% | $2,457 | $469,100 | 394,432 | $1,835 |
| Castle Rock | 21% | $3,635 | $652,900 | 79,123 | $2,000 |
| Centennial | 19% | $3,588 | $658,100 | 108,201 | $2,148 |
| Parker | 28% | $3,568 | $646,300 | 61,783 | $2,096 |
The renter base in Parker
The self-employed share of the workforce is 8.3%, and those owners tend to be exactly the buyers DSCR financing was built for. Looking at who fills the rentals, government workers are about 14% of employment, 56% of adults hold a bachelor's degree or higher and 15% of commuters travel 45 minutes or more.
Campuses such as Arapahoe Community College pull tenants into Parker, and landlords near them can plan around move-in seasons.
From a Parker listing to a loan
A good Parker 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.
More Colorado markets
- All Colorado DSCR loans
- DSCR loans in Centennial, CO
- DSCR loans in Castle Rock, CO
- DSCR loans in Aurora, CO
- DSCR loans in Denver, CO
- Every market we cover
Where we checked
- Lodging tax reference: Colorado Department of Revenue, rooms and accommodations
- Census ACS profile behind the Parker figures
- FEMA county hazard table
- Parker on Wikipedia
- Colorado security deposit statute (C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026))
We took the Parker data from Census ACS five-year tables for 2020 to 2024, estimates with margins of error. Landlord rules for Parker rest on Colorado statutes and the CC BY 4.0 RedFlagLease dataset. Checked October 2026; confirm with Parker or the county before you rely on any rule.
A short buyer checklist
For a Parker rental, request the current lease, the last tax bill and the insurance declarations page early, and confirm which utilities the tenant pays, because each one changes the monthly figure a lender compares with the rent.
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 Parker rental?
It comes from a lease or from the market rent in the appraisal, whichever the program uses. Against that, the Parker median is $2,096.
How much payment fits the median Parker rent?
The denominator is the whole housing payment. Using Parker's median rent of $2,096, a ratio of 1.25 allows $1,677, and a ratio of 1.00 allows all $2,096.
What do Parker owners pay in real estate taxes?
The Census reports a median of $3,568 a year for Parker owners, about 0.55% of median value against 0.48% for Colorado. The county reassesses after a sale, so ask the tax office for an estimate on your purchase price.
Do DSCR lenders count short-term rental income in Parker?
It depends on the program and on local law. A Parker owner needs the right permit or registration, an association that allows nightly stays, and documented bookings.
How much deposit can a Parker landlord collect?
Landlords in Parker follow C.R.S. §§ 38-12-102.5, 38-12-103 (as amended by HB25-1249, eff. Jan 1, 2026). Limit: 2 months' rent (since Aug 7, 2023). Return deadline: 30 days from move-out.
Does hazard risk affect a Parker DSCR loan?
The National Risk Index gives the county an overall relatively moderate rating. Use that as a prompt to get quotes, not as a verdict on one Parker street.
Do I need an LLC to buy a rental in Parker?
You do not need one, and many investors close in an entity. If you use an LLC, the lender asks for formation documents and usually a personal guaranty. Talk to your attorney and accountant about structure for a Colorado property.