Is Dacono, Colorado Good for Airbnb Investment?

To start an Airbnb in Dacono, Colorado, begin by researching local regulations as Dacono requires short-term rental operators to obtain a business license from the city clerk's office and comply with zoning restrictions that typically allow STRs in residential areas with proper permits. Contact Dacono City Hall at 970-833-2317 to verify current STR ordinances and obtain necessary permits, which may include a conditional use permit depending on your property's zoning designation. Find a suitable property by searching MLS listings or working with local realtors familiar with Dacono's neighborhoods near Highway 52 or the newer developments, ensuring the property meets city safety codes and HOA restrictions if applicable. Furnish the space with quality furniture from retailers like Ashley HomeStore in nearby Westminster or online suppliers, focusing on durability and local Colorado mountain aesthetic while including essentials like linens, kitchen supplies, and WiFi. Create your Airbnb listing with professional photos highlighting proximity to Boulder (20 minutes) and Denver (45 minutes), competitive pricing around $80-120/night based on local market rates, and emphasize the small-town charm with easy access to outdoor recreation. Manage your property by establishing cleaning protocols with local services like Molly Maid Longmont, implementing keyless entry systems, maintaining responsive guest communication, and tracking income for tax purposes while ensuring compliance with Colorado's 2.9% state lodging tax and any applicable Weld County taxes.

To identify profitable short-term rental properties in Dacono, Colorado, focus on properties within 2-3 miles of major attractions like the Rocky Mountain Arsenal National Wildlife Refuge and ensure easy highway access to Denver (30 minutes) and Boulder (20 minutes). Target 2-4 bedroom single-family homes or townhomes built after 1990 with modern amenities, outdoor spaces, parking, and mountain or prairie views that appeal to visitors exploring the Front Range corridor. Analyze pricing by researching comparable Airbnb listings in Dacono, Longmont, and Frederick, aiming for properties under $400,000 that can generate $150-250 per night during peak seasons (summer hiking, winter skiing access). Study competition using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Dacono has limited STR inventory compared to nearby markets, creating opportunity for well-positioned properties. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data through Colorado real estate platforms, while consulting Dacono's municipal code for STR regulations and connecting with local property management companies like Vacasa or RedAwning who operate in the northern Denver metro area to understand operational requirements and market dynamics.

To obtain an Airbnb/STR permit in Dacono, Colorado, you must first contact the Dacono Planning Department at City Hall located at 512 Cherry Avenue to determine current short-term rental regulations, as the city has been developing STR ordinances since 2019. Submit a completed short-term rental application form along with required documents including property deed or lease agreement, floor plan showing maximum occupancy, proof of liability insurance (typically $1 million minimum), business license application, and contact information for a local property manager if you're not residing locally. Pay the estimated application fee of $200-400 plus annual renewal fees of approximately $150-250, though exact amounts should be confirmed with the city. The approval process typically takes 4-6 weeks and includes a safety inspection to verify smoke detectors, carbon monoxide detectors, fire extinguishers, and adequate parking. Dacono requires STR properties to maintain quiet hours from 10 PM to 7 AM, limit occupancy to 2 people per bedroom plus 2 additional guests, provide trash collection arrangements, and display the permit number in all advertising. Once approved, you must renew annually and comply with ongoing reporting requirements including quarterly occupancy reports and maintaining current insurance coverage.

Short-term rentals (STRs) in Dacono, Colorado are currently legal but regulated under the city's municipal code. The city requires STR operators to obtain a business license and comply with zoning regulations, with rentals primarily permitted in residential zones subject to specific conditions. Key restrictions include occupancy limits based on property size, parking requirements (typically two spaces per unit), noise ordinances, and mandatory contact information for a responsible party available 24/7. Properties in certain residential areas may face additional limitations, and the city prohibits STRs in some multi-family zones depending on the specific zoning classification. Recent changes around 2022-2023 included updated registration requirements and enhanced enforcement mechanisms, with the city implementing stricter monitoring of compliance and potential penalties for violations. Operators must also comply with state and county regulations, including sales tax collection, and the city reserves the right to revoke permits for repeated violations of noise, parking, or occupancy rules.

The best areas for Airbnb investment in Dacono, Colorado are primarily concentrated around the Carbon Valley area near Highway 52 and the Flatiron Crossing vicinity, which benefit from proximity to major employers like Ball Aerospace, Seagate Technology, and the growing tech corridor between Boulder and Denver. The neighborhoods near Dacono Regional Park and the St. Vrain Creek area attract outdoor enthusiasts and families visiting for recreational activities, while properties close to the Union Pacific Railroad Museum appeal to railway history tourists. Areas within walking distance of downtown Dacono's antique shops and local businesses perform well for visitors seeking small-town charm while maintaining easy access to Boulder (20 minutes) and Denver (45 minutes). The residential districts near Dacono Elementary and middle schools are particularly attractive for business travelers and relocated families needing temporary housing, especially given the area's lower property costs compared to Boulder County while still offering mountain views and proximity to outdoor recreation at places like St. Vrain State Park.

Airbnb properties in Dacono, Colorado are subject to multiple lodging taxes including Colorado state sales tax of 2.9%, state lodging tax of 2%, and Adams County lodging tax of approximately 1-2%. The City of Dacono may impose additional local accommodation taxes ranging from 2-4%. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties enrolled in their tax collection service, which began around 2017-2019 for most Colorado jurisdictions. For properties not covered by Airbnb's automatic collection, hosts must register with the Colorado Department of Revenue and Adams County to collect and remit taxes monthly or quarterly depending on volume. Exemptions generally apply to stays exceeding 30 consecutive days, which are considered long-term rentals rather than short-term accommodations. Hosts should register for a Colorado sales tax license and may need separate registrations with Adams County and the City of Dacono depending on local requirements, with remittance typically due by the 20th of the following month for monthly filers.

Starting an Airbnb in Dacono, Colorado requires approximately $450,000-$500,000 in total initial investment. Property purchase costs around $400,000 based on median home prices in the area as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and marketing materials run approximately $2,000-$3,000. Permits and fees vary but expect $500-$1,500 for business licenses, short-term rental permits, and any required inspections depending on local Dacono regulations. Insurance costs including landlord and short-term rental coverage average $2,000-$3,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable services typically require $1,000-$2,000 upfront. First six months of operating costs including utilities ($300-$500/month), cleaning services ($100-$150 per turnover), maintenance reserves ($200-$400/month), property management software subscriptions ($50-$100/month), and marketing expenses total approximately $6,000-$10,000, bringing the complete startup investment to roughly $450,000-$500,000 before generating revenue.

Airbnb properties in Dacono, Colorado typically generate annual revenues between $18,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-55% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 25-40% for well-managed properties, with successful hosts in the area reporting annual profits of $8,000-$18,000 per property. Key success factors include proximity to Denver International Airport (20 minutes away), competitive pricing during peak oil and gas industry activity periods, professional photography, and maintaining super-host status through consistent 4.8+ ratings. Properties near Dacono's recreational areas and those offering amenities like hot tubs or fire pits command premium rates, with some hosts like those operating 2-3 bedroom homes near Highway 52 reporting occupancy rates of 65-75% and achieving the higher end of profit margins through strategic pricing during Denver Broncos games and regional events.

Based on Dacono, Colorado market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and initial investment. Properties in Dacono generally reach profitability within 18-24 months, benefiting from proximity to Denver International Airport and growing industrial development including companies like Vestas Wind Systems. Single-family homes averaging $400,000-500,000 can generate $2,800-3,500 monthly gross rental income, while townhomes and condos in the $300,000-400,000 range typically yield $2,200-2,800 monthly. The market shows strong occupancy rates of 65-75% annually due to business travelers, oil and gas workers, and tourists accessing nearby outdoor recreation areas, with peak seasons during summer months and winter ski season driving higher nightly rates of $120-180 compared to off-season rates of $80-120.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Dacono, Colorado, using data analytics and market insights. Local real estate agents serving the Dacono area include Keller Williams Realty Success with agents like Sarah Martinez and Mike Thompson who specialize in investment properties, RE/MAX Alliance with Jennifer Rodriguez focusing on Airbnb investments, and Coldwell Banker Residential with David Chen who has expertise in vacation rental properties. National services include BiggerPockets for investor networking and deal analysis, Mashvisor for rental property analytics and ROI calculations, AirDNA for short-term rental market data and performance metrics, and Awning for turnkey Airbnb investment properties. Additional local services include Front Range Property Management for Airbnb management, Colorado Investment Realty with Lisa Park specializing in STR properties, and Mountain View Real Estate Group with Tom Wilson who focuses on vacation rental investments in the Boulder County area including Dacono.