Best Towns for STRs
Every year, people spend thousands of dollars to hike and ski in the mountains of Colorado and to experience the culture of Denver. And with this comes opportunities for the real estate investor that wants to buy a vacation rental.
So what are the best Colorado towns for Airbnb? This list is pulled from my experience working with Airbnb investors for the last eight years.
You've probably never heard of many of these places, but I've chosen them for a mix of two reasons:
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Legality. Short-term rental regulations are increasingly tough to navigate. Colorado Airbnb laws are a patchwork changing city by city. So when choosing a Colorado town for STRs, you first need to know if you can operate a vacation rental at all.
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Revenues. Many of the better-known areas actually have the worst revenues relative to the cost of homes.
So ... what are these secret top Colorado towns for Airbnb?
Divide & Florissant
Just one hour west of Colorado Springs, this is one of my favorite areas in Colorado for Airbnb investments.
You get the mountain experience, tucked into aspens and pine trees. You're 60 minutes to a major city. And the prices are relatively affordable.
Plus, in one of my favorite mountain subdivisions in this area, I'm seeing a lot of newer construction cabins. And some of the best-performing Airbnbs here thread the needle between modern and mountain.
Wheat Ridge (for now)
If you want an STR investment in Denver, then look at Wheat Ridge.
Denver prohibit non-owner occupied short-term rentals, but there are a few adjacent cities that allow for Airbnbs that aren't your primary residence. Wheat Ridge is my favorite.
Wheat Ridge is just west of Denver. (If you drove west on Colfax or West 38th Avenue, you wouldn't know that you'd crossed from Denver into Wheat Ridge.)
You're still so close to the Highlands, Tennyson Street, LoHi and downtown, all some of the hottest spots of Denver.
The catch? Why do I say "for now"? Because Wheat Ridge caps the number of non-owner occupied STRs per council distrct, and as of October 2024, there's only one district with any STR permits still available.
Clear Creek County (for now)
If you want a vacation rental in the mountains outside of Denver, you have to be selective. Gilpin County is out. Jefferson County has regulatory uncertainty in my opinion. (Ask me about this.) And Clear Creek County, where Idaho Springs is located, has capped the number of vacation rentals and is past that cap.
However ...
As of October 2024, Clear Creek County is one of the only municipalities to allow owners that have an existing STR permit to transfer that permit to a new buyer.
So I spend time every week finding homes on the market in Clear Creek County that have a permit. If you can get an STR in a market that has artificially restricted competition, that's a win in my book.
Blue River
One of the most popular ski resorts in Colorado is Breckenridge. However, the town of Breckenridge (and the surrounding Summit County) has capped the number of vacation rental investment properties.
But Blue River, a tiny town 5 minutes south of Breckenridge, allows for non-owner occupied Airbnb. If you want that second home close to the resorts, then this is your town. Homes are tucked into the woods on either side of Highway 9, the main road taking you straight into Breckenridge (and Keystone and Frisco and Silverthorne).
It aint' cheap. Prices start at $1 million and quickly go up, but you can't find a more idyllic setting for a ski home that can legally be rented as an STR.
Boulder County
The home of Colorado University and one of the cutest downtowns (Pearl Street is a gem), Boulder is one of the most idyllic cities in the country. Unfortunately, you can't do short-term rentals in the city.
However, unincorporated Boulder County passed a 2024 law that allows for vacation rentals. And my favorite part is that they implemented a cap on the number of STRs allowed. As of October 2024, they have plenty of permits available in the foothills outside the city.
But if you hold an STR permits when they hit that cap, you've got a viable vacation rental business next to one of the Colorado's most popular destinations. And no other competition can come in.
If you're looking for a second home or an Airbnb investment property, you can definitely buy in the more well-known ski towns. But you're not looking to drop $2 million or just want something different, there are better unheard of towns that will make you Airbnb money and give you the Colorado experience.