Guide · Colorado
The most Airbnb-friendly cities in Colorado.
None of the 4 Colorado markets we track is fully open to investors. The ski towns allow investor-owned rentals but cap licenses by zone and tax them heavily to fund local housing, and Denver allows short-term rentals only in the host's own home.
The ranking
4 Colorado markets, most to least open
Ranked by how open each place is to investor-owned, whole-home rentals, then by how much local registration it takes. This compares rules only, not returns, prices or demand.
| Market | Rules |
|---|---|
| 1. Steamboat Springs | Open in Zone A; capped or closed elsewhere Registration: City STR license; Hosted and Temporary licenses allowed in every zone. Combined tax: About 18.4% (including a 9% STR tax); up to 20.4% in the marketing district |
| 2. Breckenridge | Capped in every zone; Downtown and residential waitlisted Registration: Annual license plus $756 per bedroom per year. Combined tax: 12.275% |
| 3. Aspen | Investment ('Classic') permits capped and waitlisted by zone Registration: $394 a year for an STR permit plus a $150 city business license. Combined tax: 22.35% for investment rentals, 17.35% owner-occupied (2026) |
| 4. Denver | Primary residence only Registration: $50 application plus $100 a year; $1 million liability insurance. Combined tax: 14.75% |
Market by market
What each place allows
1. Steamboat Springs, CO
| Short answer | Open in Zone A; capped or closed elsewhere Standard short-term rental licenses have no cap in Zone A. Zone B is split into six sub-zones capped at 5 to 20 licenses each, and new standard licenses are prohibited in Zone C, though hosted and temporary rentals are still allowed there. A voter-approved 9% STR tax, used for affordable housing, makes Steamboat's tax one of the highest we track. |
|---|---|
| Registration | City STR license; Hosted and Temporary licenses allowed in every zone |
| Combined tax | About 18.4% (including a 9% STR tax); up to 20.4% in the marketing district |
| Full rules | Short-term rental rules in Steamboat Springs Verified September 27, 2026 |
2. Breckenridge, CO
| Short answer | Capped in every zone; Downtown and residential waitlisted Breckenridge caps licenses in all four zones: 1,680 in the Tourism zone, 130 Downtown and 390 in residential areas, where grandfathered licenses already exceed the caps and waitlists run for years. The $756-per-bedroom annual fee was upheld by the Colorado Court of Appeals in March 2026. Licenses don't transfer when a property sells. |
|---|---|
| Registration | Annual license plus $756 per bedroom per year |
| Combined tax | 12.275% |
| Full rules | Short-term rental rules in Breckenridge Verified September 27, 2026 |
3. Aspen, CO
| Short answer | Investment ('Classic') permits capped and waitlisted by zone Aspen has three main permit types. Investment and second-home ('Classic') permits are capped in 14 zone districts, from 1 permit in some zones to 190 in R/MF, with a waitlist where a zone is full; commercial and lodge districts have no cap. Owner-occupied permits aren't capped but are limited to 120 nights a year. A 10% STR tax on Classic rentals (5% for owner-occupied) stacks on sales and lodging taxes, one of the highest combined rates we track. |
|---|---|
| Registration | $394 a year for an STR permit plus a $150 city business license |
| Combined tax | 22.35% for investment rentals, 17.35% owner-occupied (2026) |
| Full rules | Short-term rental rules in Aspen Verified October 2, 2026 |
4. Denver, CO
| Short answer | Primary residence only Denver licenses short-term rentals only in the host's primary residence; second homes and investor-owned units can't be licensed. An ADU can be rented if the owner lives in the main house. Booking platforms must block unlicensed listings. |
|---|---|
| Registration | $50 application plus $100 a year; $1 million liability insurance |
| Combined tax | 14.75% |
| Full rules | Short-term rental rules in Denver Verified September 26, 2026 |
State law
The Colorado rules behind the ranking
| Who sets the rules | Each town, city and county Colorado has no statewide short-term rental license and no state law limiting local caps or bans, so mountain towns can cap licenses by zone and Denver can require a primary residence. |
|---|---|
| Local STR taxes | Voters in several towns have added STR-specific taxes Steamboat Springs adds a 9% STR tax and Aspen a 5% or 10% STR excise tax on top of sales and lodging taxes, largely to fund affordable housing. Since 2025, counties can also raise lodging taxes up to 6% with voter approval. |
| State bills | Property-tax reclassification failed in 2024 A 2024 bill to tax non-owner-occupied short-term rentals as lodging property, at a higher property-tax rate, did not pass. Watch for it to return. |
| Which government | Check town limits and the zone map Caps in Breckenridge, Steamboat and Aspen depend on the exact zone, so look up the parcel on the town's map before buying. See also cities that banned or restricted Airbnb. |
Newsletter
Ski-town caps change every season. Hear about it first.
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The ranking compares local rules for investor-owned, whole-home rentals in the jurisdiction each market page covers. It isn't investment advice and doesn't weigh prices, occupancy or returns. General information only, not legal or tax advice; HOA and condo rules can be stricter. Airbnb is a trademark of Airbnb, Inc.; Rental Rule Book is independent and not affiliated with any booking platform. See also all guides.