Is Colorado Springs, Colorado Good for Airbnb Investment?

Potentially—Colorado Springs, Colorado combines visitor demand with long-term real estate upside.

• Offers a promising opportunity, driven by the city's strong tourism sector and a growing local economy.
• Current market conditions show a consistent demand for short-term rentals, fueled by Colorado Springs' appeal as a gateway to natural attractions like Pikes Peak and Garden of the Gods.
• Tourism trends indicate a steady influx of visitors year-round, ensuring robust occupancy rates, particularly during peak seasons.
• While property values in Colorado Springs have seen appreciation, making initial investments moderate, the potential for solid rental income and long-term capital gains remains attractive.

$1,200–$3,500 per month based on location, season, and property quality.

• Average Airbnb earnings in Colorado Springs typically range from $1,200 to $3,500 per month, with properties near popular attractions like Pikes Peak and Garden of the Gods commanding higher rates of $80-150 per night compared to $45-85 for standard residential areas.
• Seasonal variations show peak earnings during summer months (June-August) when revenue can increase by 40-60% due to tourist influx.
• Properties with mountain views, hot tubs, or proximity to hiking trails consistently outperform average earnings by 25-35%.
• Key factors affecting earnings include property size (3+ bedroom homes averaging $2,800 monthly versus 1-bedroom units at $1,400), location within the city (downtown and Broadmoor area properties earning 30% premiums).
• Market saturation in certain neighborhoods has intensified competition, with newer listings requiring 3-6 months to establish consistent booking patterns.

Potentially strong—typical annual ROI is 8–15%.

• Airbnb investments in Colorado Springs typically generate ROI between 8-15% annually, with properties near popular attractions like Pikes Peak and Garden of the Gods achieving the higher end of this range.
• The average payback period for initial investment ranges from 6-10 years, depending on property location and management efficiency.
• Short-term rental properties in desirable neighborhoods like Old Colorado City and downtown areas can generate approximately $150-250 per night during peak seasons.
• Compared to traditional long-term rentals in Colorado Springs, which typically yield 6-9% ROI, Airbnb properties generally outperform by 2-6 percentage points.
• Properties within 10 miles of major military installations like Fort Carson and the Air Force Academy tend to maintain more consistent year-round bookings.

Colorado Springs, Colorado averages 65–70% annual occupancy, with seasonal variation.

• Colorado Springs Airbnb properties typically maintain an average annual occupancy rate of approximately 65-70%.
• Winter months generally see occupancy rates drop to 45-55%, while spring and fall maintain moderate levels around 60-65%.
• The city's occupancy rates perform slightly above the Colorado state average of 62-67% and closely align with national Airbnb averages of 65-70%.
• Peak demand periods include major holidays, summer vacation season, and autumn foliage viewing times.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Colorado Springs include Old Colorado City, which offers excellent pricing power due to its historic charm, proximity to Manitou Springs.
• The Broadmoor area commands premium rates given its luxury resort proximity, upscale demographics, and access to world-class golf and spa amenities.
• Downtown Colorado Springs provides strong occupancy rates with its central location near restaurants, breweries, and business districts, appealing to both leisure and business travelers.
• The Manitou Springs vicinity capitalizes on tourist traffic heading to Pikes Peak, Garden of the Gods, and the cog railway, offering consistent seasonal demand and higher nightly rates.
• Cheyenne Canyon neighborhoods benefit from proximity to Seven Falls and hiking trails, attracting outdoor enthusiasts willing to pay premium prices for nature access.
• The Ivywild area has emerged as a trendy investment zone with its revitalized arts district, craft breweries, and younger demographic appeal.
• Finally, neighborhoods near the Air Force Academy capture military family visits and graduation events, providing predictable booking patterns and steady demand throughout the year.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Colorado Springs requires short-term rental operators to obtain a business license and register their property with the city.
• Properties must comply with occupancy limits of two people per bedroom plus two additional guests, with a maximum of 10 occupants total regardless of bedroom count.
• Owner-occupancy is not required for short-term rentals, allowing for non-hosted rentals throughout the city.
• Zoning restrictions permit short-term rentals in most residential zones including R1, R2, R3, R4, and R5, but they are prohibited in certain planned unit developments and areas with specific HOA restrictions.
• The registration process requires submission of floor plans, proof of insurance, contact information for a local responsible party available 24/7, and compliance with fire safety codes including smoke and carbon monoxide detectors.
• Recent changes implemented in 2022-2023 include stricter noise ordinance enforcement with fines up to $1,000, mandatory posting of house rules and emergency contact information.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Colorado Springs, Colorado are subject to several fees and taxes including a city lodging tax of 2.75% on gross rental receipts, Colorado state sales tax of 2.9%.
• Property owners must obtain a short-term rental license costing approximately $150-200 annually, register with the Colorado Department of Revenue for sales tax collection.
• Business license fees typically range from $25-75 annually, and properties may be subject to periodic inspection fees of $50-100.
• Some neighborhoods or homeowners associations may impose additional registration requirements with fees ranging from $50-150, and owners must also account for standard property taxes and potential increased insurance costs, though these vary by property value and coverage.