Best Places to Buy a Short-Term Rental in Colorado: A County-by-County Guide
Regulations verified September 2026 and subject to change. Always confirm current requirements with the county before you buy. This is not legal or tax advice.
Most people research a Colorado short-term rental in the wrong order. They find a property they love, run the revenue numbers, get excited, and only then ask whether they are allowed to rent it.
That order gets expensive. In Colorado there is no statewide short-term rental law. State statute simply defines any rental under 30 days as a short-term rental and hands regulatory authority to local government. Everything else is decided county by county and town by town, and the difference between two properties twenty minutes apart can be the difference between an easy license and a flat no.
So the right first question is not "what will this property earn?" It is "what jurisdiction is this parcel in, and what does that jurisdiction allow?"
We operate across six counties in the foothills and mountains between Denver and Colorado Springs. Here is what each one actually looks like right now, what changed in 2026, and where we would put money.
The six counties at a glance
County | Anchor markets | Regulatory posture | Notable |
Park | Bailey, Fairplay, Jefferson, Lake George | Licensed, no caps | New ordinance effective July 2026 |
Teller | Woodland Park, Divide, Florissant | No county ordinance yet, one pending | First-ever ordinance in final hearings |
Clear Creek | Idaho Springs, Georgetown, Empire | Licensed, actively enforced | Strict water, septic, and insurance rules |
Jefferson | Evergreen, Conifer, Morrison | Newly licensed | Replaced a broken system in Dec 2025 |
El Paso | Cascade, Green Mountain Falls, Black Forest | Unincorporated areas unregulated | Colorado Springs is far stricter |
Now the detail.
Park County: the most investor-friendly county on this list
Markets: Bailey, Fairplay, Jefferson, Alma, Lake George, Como
Who it draws: Denver weekenders, Kenosha Pass fall color traffic, South Platte fishing, hikers, and winter travelers using it as a cheaper base than the I-70 resorts.
The rules: Park County adopted Ordinance 2026-01 on June 9, 2026, effective July 19, 2026, replacing its 2021 ordinance. Every short-term rental in unincorporated Park County needs an annual license, applied for online. Critically, there is no cap on the number of licenses and no cap on rental nights.
Two provisions matter most to out-of-area owners. First, the ordinance requires a designated Responsible Agent for each property, and any change of agent must be reported to the county. Second, overnight occupancy cannot exceed the design capacity of the property's onsite wastewater treatment system. In rural Park County, where nearly everything runs on septic, the septic system sets your headcount, not the number of beds you can fit.
Our read: This is the strongest combination on the list. Under an hour from Denver, no license or night caps, and a county that has now written clear rules rather than leaving owners guessing. Bailey in particular is professionalizing quickly. Operators are arriving with real photography, real design, and real pricing strategy, and properties still doing it the old way are losing share fast.
Check before you buy: Pull the septic records. If design capacity is four people, your revenue model cannot assume eight.
Teller County: the market to watch, and the one changing right now
Markets: Woodland Park, Divide, Florissant, Cripple Creek, Victor
Who it draws: Pikes Peak and Garden of the Gods visitors who want to stay outside Colorado Springs, Mueller State Park hikers, off-roaders, Eleven Mile and Spinney anglers, and Cripple Creek gaming traffic.
The rules: This is the live one. Teller County has historically had no county-level short-term rental ordinance at all, which is a large part of why it grew to more than 800 rentals. That is changing. The Board of County Commissioners passed a first reading of Ordinance 23 on August 6, 2026, with a second public hearing scheduled for September 10, 2026. It is the first ordinance of its kind in the county's history.
As drafted, it would permit short-term rentals only in the A-1, R-1, RR, and R1M zoning districts and prohibit them everywhere else, with a density cap of no more than 10% of residential properties per subdivision. Licenses would be annual and non-transferable, so a sale would not carry the license to the buyer. Applicants would need a third-party septic inspection dated within 365 days showing no deficiencies. Properties would need two off-street parking spaces, a designated local contact able to respond to complaints within 60 minutes, wildlife-secure trash, quiet hours from 10 p.m. to 6 a.m., and no outdoor signage. Occupancy would be set by septic design capacity, or two per bedroom on central sewer. First-year fees are reported around $1,000.
The ordinance has drawn real opposition, with owners arguing at public comment that it intrudes on property rights and threatens income for hosts and the cleaners and maintenance workers who serve them.
Our read: Do not let the pending ordinance scare you off, but do not buy in Teller County without reading the final adopted version. Two provisions deserve close attention. A non-transferable license means buying an existing rental does not buy you the right to keep operating it. And a 10% per-subdivision density cap means the answer can be yes on one street and no on the next.
Clear Creek County: strong demand, strict compliance
Markets: Idaho Springs, Georgetown, Empire, Silver Plume
Who it draws: I-70 corridor traffic, hot springs visitors, Georgetown Loop Railroad tourists, mine tour and history travelers, and skiers who would rather pay Idaho Springs prices than Summit County prices.
The rules: Clear Creek requires a short-term rental license under Ordinance 19 and enforces it seriously. The county states plainly that it acts against unpermitted rentals and invites complaints about them.
The requirements are more demanding than most Colorado counties. You must show evidence of a legal water supply and sewage disposal method, typically the current well permit and onsite wastewater treatment system permit. If the existing system is undocumented or unsuitable, you may be required to upgrade or replace it before you can be licensed. Accessory dwelling units cannot be rented at all. There is a building safety certification with an inspection by the Chief Building Official. Liability insurance is required, and the county has specified that Airbnb's AirCover does not satisfy it.
Our read: Excellent demand fundamentals, but the diligence burden falls before closing, not after. An old cabin with a mystery septic system can turn into a five-figure surprise. Get the well and OWTS permits in hand during your inspection period.
Jefferson County: a market that just reopened
Markets: Evergreen, Conifer, Morrison, Aspen Park, Kittredge
Who it draws: Denver metro proximity is the whole story. Red Rocks, Mount Falcon and Alderfer trails, Evergreen Lake, and easy access from DIA. Strong average daily rates and consistent year-round demand.
The rules: Jefferson County adopted Section 46 of its Zoning Resolution on December 16, 2025, along with an accompanying Vacation Rental Services ordinance. Applications now run through the county's Citizen Portal.
This was a meaningful fix. Under the old framework, operating legally required a special exception approval from the Board of Adjustment before you could even apply for a permit, a roughly two-month process with a public hearing where neighbors could object. The result was predictable. The county estimated more than 700 short-term rentals in unincorporated Jeffco with fewer than 50 properly permitted. A county planning supervisor said openly that a compliance rate that low points to a problem with the regulations, not just the owners.
Our read: Evergreen and Conifer have some of the best fundamentals in the state on paper, and the old permitting process was the main thing holding investors back. Now that a real pathway exists, this market deserves a serious look. Wildfire mitigation and defensible space requirements are real here, so budget for them.
El Paso County: the jurisdiction line matters more than anywhere else
Markets: Cascade, Green Mountain Falls, Chipita Park, Black Forest
Who it draws: Pikes Peak Highway and Cog Railway traffic, Garden of the Gods, Air Force Academy visitors, military families, and Colorado Springs business and event travel.
The rules: Unincorporated El Paso County says it plainly on its own planning department site: there is no codified short-term rental ordinance and no permit requirement for renting the principal structure. Renting an accessory structure does require zoning approval. Beyond that, properties simply have to comply with the Land Development Code and county ordinances, and the county publishes voluntary Good Neighbor Guidelines that are explicitly not enforceable.
Cross into the City of Colorado Springs and the picture inverts. The city runs a two-tier permit system. Owner-occupied requires living at the property at least 185 days a year. Non-owner-occupied rentals are not permitted in single-family zoning districts at all, and where allowed they must sit at least 500 feet apart. Manitou Springs caps short-term rentals at 2% of residential structures with permits that do not transfer on sale.
Our read: This is where mailing addresses mislead buyers more than anywhere else in Colorado. A listing can say "Colorado Springs" while the parcel sits in the unincorporated county, or the reverse. The postal label is not the jurisdiction. Verify the parcel.
One more caution. Several automated regulation lookup sites currently claim El Paso County requires a county short-term rental license with an annual fee. The county's own planning department says otherwise. Trust the primary source.
Douglas County: allowed, but only in specific places
Markets: Sedalia, Franktown, Louviers, areas west of Larkspur, areas generally east of Parker
Who it draws: Denver and Castle Rock overflow, Rampart Range recreation, event and wedding traffic, and golf.
The rules: Douglas County adopted Ordinance O-023-003 in July 2023. Unincorporated Douglas County requires a Short-Term Rental License, valid one year, with a $130 fee, applied for through the Zoning Compliance team. The requirement applies across all zone districts.
The provision that decides most deals is this one: a dwelling within a Planned Development zone district cannot be licensed unless that PD specifically allows short-term rental use. Most do not. That knocks out Highlands Ranch, The Pinery, and large stretches of the county's more populated unincorporated areas. What remains is Sedalia, Franktown, Louviers, west of Larkspur, and pockets east of Parker.
Applications also require inspection reports and a determination from the Douglas County Health Department. There is an exemption for dwellings rented 14 days or fewer per calendar year that are not regularly advertised.
The municipalities vary sharply. Castle Rock does not regulate short-term rentals specifically but requires a town business license and lodging and sales tax remittance. Lone Tree prohibited new short-term rentals in 2023. Castle Pines and Parker prohibit them.
Our read: Douglas is the most zone-dependent county on this list. The license itself is cheap and the process is straightforward, but the Planned Development restriction eliminates most of the county before you start. Use the county's Zoning Lookup tool as your very first step, not your last. Where it works, it works well, particularly for Rampart Range and event-driven demand.
What changed across Colorado in 2026
Three of our six counties moved this year, and the direction is consistent.
Colorado is shifting from unregulated to regulated, not from regulated to banned. Park County adopted a new ordinance with no caps. Jefferson County replaced a broken system with a functional one. Teller County is writing its first ordinance. None of these are prohibitions. They are licensing regimes with safety, septic, insurance, and local-contact requirements.
That trend actually favors serious operators. Requirements like a 60-minute local contact response, annual renewals, septic inspections, and insurance verification are administrative burdens for an absentee owner and routine operations for a professional co-host. Every new compliance requirement thins the field of casual competitors.
One more thing worth knowing: a statewide effort to reclassify non-owner-occupied short-term rentals as commercial lodging property, which would have roughly quadrupled property tax assessments, was postponed indefinitely in committee in 2024 and never became law. You will find articles online claiming it took effect in January 2026. It did not. Colorado short-term rentals remain classified as residential real property.
How to vet a Colorado property before you make an offer
Identify the jurisdiction by parcel, not by mailing address. Use the county assessor or GIS map. This is step one for a reason.
Confirm the zoning district allows short-term rental. In Douglas County and in Teller County under the pending ordinance, this alone eliminates most of the county.
Check for density caps, separation requirements, and Planned Development restrictions.
Pull the septic and well records. In Park, Teller, and Clear Creek counties, septic design capacity sets your maximum occupancy, which sets your revenue ceiling.
Ask whether an existing license transfers. In several of these jurisdictions it does not.
Read the HOA covenants. County approval means nothing if the HOA prohibits short-term rental, and plenty do.
Verify insurance will be available and adequate. Standard homeowners policies typically exclude short-term rental claims.
Budget for wildfire mitigation. Much of this region is wildland urban interface.
Frequently asked questions
Does Colorado have a statewide short-term rental law? No. State statute defines a short-term rental as any stay under 30 days and delegates regulation to counties and municipalities. Rules are entirely local.
Which Colorado county is easiest for short-term rentals? Among the counties we operate in, Park County currently offers the best combination of clear rules and no caps on licenses or rental nights. Unincorporated El Paso County has no county permit requirement for a principal structure, though the surrounding cities are much stricter.
Are short-term rental licenses transferable when I sell? Often not. Teller County's pending ordinance and Manitou Springs both specify non-transferable licenses. Never assume you are buying an operating permit along with the house.
Can I short-term rent in Evergreen or Conifer? Yes. Jefferson County adopted a new short-term rental section of its Zoning Resolution in December 2025 that created a workable permit pathway, replacing the previous Board of Adjustment special exception process.
Can I short-term rent in Highlands Ranch or The Pinery? No. Douglas County's ordinance prohibits licensing a dwelling within a Planned Development zone district unless that PD specifically allows the use, and these do not.
Do Colorado short-term rentals pay commercial property tax rates? No. The bill that would have done that was postponed indefinitely in 2024 and never became law.
Where we would put money right now
If you asked us to rank these six for a new investor buying in the next twelve months, we would put Park County first for its combination of Denver access and no caps, Jefferson County second now that Evergreen and Conifer have a real permit pathway, and Clear Creek third on demand fundamentals if you are willing to do the septic and water diligence. Teller County is a hold until the final ordinance is adopted, at which point it may well move to the top. El Paso County is excellent in the unincorporated pockets and difficult inside Colorado Springs. Douglas County works in specific places and nowhere else.
But rankings are less useful than the underlying point. In Colorado, the property does not determine whether the investment works. The parcel does.
If you are evaluating a specific address in any of these counties, send it to us. We will tell you what jurisdiction it sits in, what the current rules are, and what we think it can actually earn.
Evergreen Escapes co-hosts short-term rentals across Park, Teller, Clear Creek, Jefferson, El Paso, and Douglas counties. We manage the operation so owners do not have to learn six sets of county rules.
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