Is Eagle, Colorado Good for Airbnb Investment?

To start an Airbnb in Eagle, Colorado, begin by researching local regulations through Eagle County and the Town of Eagle, as short-term rentals typically require a business license and may have zoning restrictions in residential areas. Contact Eagle County Planning Department and Town of Eagle's Community Development office to obtain necessary permits, which likely include a short-term rental license, sales tax license, and potentially a conditional use permit depending on your property's zoning. Find a suitable property by working with local real estate agents familiar with Eagle's market, focusing on areas near Vail Valley attractions while ensuring the property allows short-term rentals per HOA or lease agreements. Furnish the space with mountain-appropriate decor, quality linens, kitchen essentials, and outdoor gear storage, considering Eagle's year-round tourism from skiing and hiking activities. Create your Airbnb listing with professional photos highlighting mountain views and proximity to Vail (15 minutes) and outdoor recreation, setting competitive rates based on Eagle's seasonal demand patterns with higher prices during ski season (December-March) and summer hiking season (June-September). For management, establish relationships with local cleaning services, maintenance contractors, and consider property management companies like Vail Valley Partners or RedAwning if you're not local, while implementing keyless entry systems and maintaining responsive guest communication to handle Eagle's elevation-related guest questions and provide recommendations for local activities like Eagle Ranch Golf Course and nearby hiking trails.

To identify profitable short-term rental properties in Eagle, Colorado, focus on locations within 15-20 minutes of Vail and Beaver Creek ski resorts, prioritizing properties with mountain views, easy highway access via I-70, and proximity to outdoor recreation areas like the Eagle River. Target 2-4 bedroom properties built after 1990 with mountain modern aesthetics, hot tubs, garages, and outdoor spaces that can accommodate 6-10 guests, as these command premium rates of $200-500+ per night during peak ski season (December-March) and summer months (June-September). Conduct pricing analysis using AirDNA and Mashvisor to evaluate comparable properties, aiming for properties under $800,000 that can generate 15-25% annual returns, while researching competition density through Airbnb and VRBO searches within 5-mile radius to ensure market isn't oversaturated. Utilize local resources like Eagle County property records, work with Eagle Valley real estate agents familiar with STR regulations, monitor Eagle County's short-term rental licensing requirements, and leverage tools like Rabbu and PriceLabs for dynamic pricing optimization while tracking seasonal demand patterns that peak during Vail's ski season and summer festival periods.

To obtain an Airbnb/STR permit in Eagle, Colorado, you must first contact the Eagle Town Clerk's office at 200 Broadway Street or call (970) 328-6354 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement with landlord consent, a floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), contact information for a local property manager or 24-hour emergency contact within 30 minutes of the property, and a parking plan showing adequate off-street parking. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. You must also provide evidence of compliance with fire safety requirements, including smoke and carbon monoxide detectors, and ensure the property meets all building and zoning codes. The timeline for approval is typically 4-6 weeks after submitting a complete application, though this can extend to 8-10 weeks during peak application periods. Eagle requires STR operators to limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 7 AM, provide adequate trash collection, and display the permit number in all advertising. Properties must also comply with Eagle's specific zoning regulations, as STRs may be prohibited in certain residential zones, and operators must collect and remit local lodging taxes of approximately 4-6% to the town.

Short-term rentals (STRs) are legal in Eagle, Colorado, but operate under specific regulations established by the Town of Eagle. The town requires STR operators to obtain a business license and comply with zoning restrictions that primarily allow STRs in residential zones with certain limitations on the number of guests and parking requirements. Properties must meet safety standards including smoke and carbon monoxide detectors, and operators must provide local contact information for guests. The town has implemented noise ordinances and quiet hours typically from 10 PM to 7 AM to address neighborhood concerns. Recent changes around 2022-2023 included stricter enforcement mechanisms and increased penalties for violations, with the town requiring annual renewals of STR permits and implementing a complaint tracking system. Eagle County as a whole has been grappling with housing shortages, leading to ongoing discussions about potential caps on STR permits, though no outright bans have been implemented in Eagle specifically, unlike some neighboring mountain communities that have imposed moratoriums or stricter limitations on new STR permits.

The best Airbnb investment areas in Eagle, Colorado include the Eagle Ranch Golf Club neighborhood, which attracts golf enthusiasts year-round and offers proximity to the championship golf course and mountain views, making it ideal for leisure travelers seeking upscale accommodations. The historic downtown Eagle area near Broadway and Chambers Avenue provides excellent walkability to restaurants, shops, and local events like the Eagle Fun Days festival, appealing to tourists wanting an authentic small-town Colorado experience. The Eagle River corridor properties offer direct access to world-class fishing, kayaking, and river activities, drawing outdoor recreation enthusiasts from Denver and beyond. Areas near the Eagle County Airport provide convenience for business travelers and tourists flying into the region, particularly those heading to nearby Vail and Beaver Creek resorts who prefer more affordable accommodations. The Eby Creek Road and Sylvan Lake Road areas offer mountain cabin experiences with hiking trail access and scenic views, attracting families and groups seeking retreat-style accommodations. Properties near the Eagle Valley Trail system capitalize on the growing popularity of biking and walking tourism, while areas close to the Eagle Pool and Ice Rink benefit from sports tournament visitors and families attending youth hockey events throughout the winter season.

Eagle, Colorado imposes a 4.5% lodging tax on short-term rental accommodations including Airbnbs, which applies to stays of 30 days or less. This tax is collected by the host at the time of booking and must be remitted to the Town of Eagle monthly by the 20th of the following month using their online portal or by submitting Form LT-1 along with payment. Additionally, Eagle County levies a 1.5% county lodging tax that follows similar collection and remittance procedures. Hosts must register with both the town and county before operating and obtain lodging tax licenses, with the town requiring a $25 annual license fee. The taxes are calculated on the total rental amount including cleaning fees but excluding applicable sales taxes. There are no exemptions for stays under 30 days, and hosts who fail to collect and remit these taxes face penalties of 10% of the unpaid tax amount plus interest at 1% per month. Properties used exclusively for permanent residency (over 30 consecutive days) are exempt from these lodging taxes but may be subject to standard sales tax instead.

The total cost to start an Airbnb in Eagle, Colorado is approximately $875,000-$1,050,000. Property purchase represents the largest expense at $750,000-$900,000 based on median home prices in the Eagle area as of 2023-2024. Furnishing costs range from $25,000-$40,000 for a complete mountain-style setup including furniture, appliances, linens, and decor suitable for vacation rentals. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and potential HOA approvals cost $1,500-$3,000 annually. Insurance for short-term rentals runs $3,000-$5,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $400-$600 monthly or $2,400-$3,600 for six months. First six months operating costs including cleaning services ($150-$200 per turnover), property management (20-30% of revenue if outsourced), maintenance reserves, supplies, and marketing total $15,000-$25,000. Additional considerations include potential property management software subscriptions ($50-$100 monthly), welcome amenities, and emergency repair funds that add another $3,000-$5,000 to initial costs.

Airbnb properties in Eagle, Colorado demonstrate strong profitability potential with average annual revenues ranging from $45,000-$85,000 for well-positioned properties, driven by the area's proximity to Vail and Beaver Creek ski resorts. Properties typically achieve 60-75% occupancy rates during peak winter months (December-March) at $250-$400 per night, and 45-60% occupancy during summer months at $180-$280 per night. Operating expenses generally run 35-45% of gross revenue, including cleaning fees ($75-$125 per turnover), property management (20-25% of revenue), utilities ($200-$350 monthly), insurance ($2,500-$4,000 annually), and maintenance costs. Successful properties like luxury condos near Eagle Ranch Golf Club or mountain view homes in Eagle's residential areas achieve profit margins of 25-35% after expenses, with annual net profits of $15,000-$35,000. Key success factors include professional photography showcasing mountain views, strategic pricing during Vail's peak seasons, partnerships with local property management companies like Vacasa or RedAwning, and amenities such as hot tubs, ski storage, and mountain bikes. Properties within 15 minutes of Vail typically outperform those further away by 20-30% in both occupancy and nightly rates, while those offering unique experiences like creek access or hiking trail proximity command premium pricing year-round.

Airbnb investments in Eagle, Colorado typically generate annual ROI of 12-18% due to the area's proximity to Vail and Beaver Creek ski resorts, with cash-on-cash returns ranging from 8-14% depending on property type and financing structure. Properties in Eagle generally reach profitability within 18-24 months, with vacation rentals averaging $180-250 per night during peak ski season (December-March) and $120-180 during summer months. The market benefits from year-round demand driven by outdoor recreation, with occupancy rates of 65-75% annually for well-managed properties. Initial investment costs range from $400,000-800,000 for suitable rental properties, and investors typically see gross rental yields of 10-15% before expenses, with net yields settling around 6-10% after accounting for property management, maintenance, and local taxes.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Eagle, Colorado, providing market analytics and investment insights. Local real estate agents specializing in Airbnb investments in Eagle include Slifer Smith & Frampton Real Estate (established 1962), Berkshire Hathaway HomeServices Colorado Properties, and LIV Sotheby's International Realty, who have deep knowledge of the Vail Valley rental market. National services like AirDNA (founded 2015) and Mashvisor (2014) offer comprehensive market analysis and property performance data for Eagle's vacation rental market. RedAwning and Vacasa provide property management services for investors, while companies like BiggerPockets connects investors with local Eagle market experts. Local property management firms such as Vail Valley Property Management and Eagle County Property Services specialize in short-term rental operations, and investment advisory services like Roofstock and Awning help investors identify cash-flowing properties in the Eagle area, leveraging the town's proximity to world-class skiing and outdoor recreation that drives strong vacation rental demand year-round.