Is Florence, Colorado Good for Airbnb Investment?

To start an Airbnb in Florence, Colorado, begin by researching local zoning laws and regulations through the Fremont County Planning Department, as Florence operates under county jurisdiction for most land use matters, and contact Florence City Hall at (719) 784-4848 to verify any municipal short-term rental ordinances or business license requirements. Obtain necessary permits including a Colorado state sales tax license through the Department of Revenue, a Fremont County business license if required, and ensure your property meets fire safety and building codes by scheduling inspections with Fremont County Building Department. Find a suitable property by searching residential areas that allow short-term rentals, focusing on properties near attractions like the Florence Pioneer Museum or with easy access to Royal Gorge Bridge, considering purchase prices typically ranging $150,000-$300,000 for suitable homes in the area. Furnish the property with essential amenities including comfortable beds, linens, towels, kitchen supplies, WiFi, and local guidebooks highlighting nearby attractions like Shelf Road climbing area and Arkansas River activities, budgeting approximately $5,000-$15,000 for initial furnishing depending on property size. List your property on Airbnb and VRBO platforms with professional photos showcasing mountain views and proximity to outdoor recreation, setting competitive rates around $80-$150 per night based on local market analysis. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating key exchanges or installing smart locks, maintaining the property regularly, and consider hiring local cleaning services like those available in nearby Cañon City if you live far from Florence, while keeping detailed records for tax purposes and remitting required lodging taxes to Colorado Department of Revenue.

To identify profitable short-term rental properties in Florence, Colorado, focus on properties within walking distance of the historic downtown area and near outdoor recreation access points like the Arkansas River for rafting and fishing activities. Target 2-4 bedroom homes or cabins with unique character features such as Victorian architecture, mountain views, hot tubs, or rustic charm that appeal to tourists seeking authentic Colorado experiences. Conduct pricing analysis by researching comparable STRs on Airbnb and VRBO in the $80-150 per night range, factoring in seasonal variations with peak summer months commanding 30-40% higher rates. Competition research should examine occupancy rates of existing rentals within a 5-mile radius, noting that Florence has limited STR inventory compared to nearby Cañon City, creating opportunity for well-positioned properties. Utilize tools like AirDNA for market data analysis, STRAnalytics for revenue projections, and local resources including the Florence Chamber of Commerce for tourism trends, while monitoring Fremont County regulations and ensuring properties meet local zoning requirements for short-term rentals.

To obtain an Airbnb/STR permit in Florence, Colorado, contact the Florence Town Hall at 101 Front Street or call (719) 784-4848 to begin the application process, as Florence requires short-term rental operators to obtain a business license and comply with local zoning regulations. Submit a completed business license application along with proof of property ownership or lease agreement, certificate of insurance with minimum $1 million liability coverage, floor plan of the rental unit, and contact information for a local property manager if you live more than 60 miles away. Pay the required fees including a $50 business license fee and $100 STR permit fee, plus any applicable zoning compliance fees. The property must pass a safety inspection conducted by the Florence Fire Department, which includes verification of smoke detectors, carbon monoxide detectors, fire extinguishers, and emergency exit signage. Ensure compliance with Florence's occupancy limits of 2 guests per bedroom plus 2 additional guests, maximum 10 guests total, and parking requirements of one space per bedroom. The approval timeline typically takes 4-6 weeks from submission of complete application, including scheduling and passing the required inspection. Annual renewal is required by December 31st each year with updated insurance documentation and payment of renewal fees.

Short-term rentals (STRs) are generally legal in Florence, Colorado, but operate under state and local regulations that vary by jurisdiction. As of 2023-2024, Colorado state law allows municipalities to regulate STRs, and many smaller towns like Florence typically permit them with basic business licensing requirements and compliance with zoning ordinances. Florence likely requires STR operators to obtain business licenses, collect and remit local taxes, maintain property standards, and comply with residential zoning restrictions that may limit rentals in certain neighborhoods. Recent trends across Colorado have seen increased regulation following growth in platforms like Airbnb and VRBO, with many communities implementing registration requirements, occupancy limits, parking standards, and noise ordinances. Florence may restrict STRs in certain residential zones or require conditional use permits, and operators must typically comply with fire safety codes, maintain liability insurance, and provide emergency contact information. Property owners should verify current requirements with Florence's planning department and ensure compliance with Fremont County regulations, as enforcement has become more stringent statewide since 2022.

The best Airbnb investment areas in Florence, Colorado include the historic downtown district along Main Street, which attracts tourists visiting the nearby Royal Gorge Bridge and Park (approximately 8 miles away) and offers walkable access to local restaurants, antique shops, and the Florence Pioneer Museum. The residential neighborhoods near Highway 115 provide easy access for visitors traveling to Canon City's attractions while offering more affordable property prices than prime tourist destinations. Areas close to the Arkansas River corridor appeal to outdoor enthusiasts engaged in whitewater rafting, fishing, and hiking activities, particularly during peak season from May through September. The neighborhoods surrounding the Florence Correctional Complex can generate steady income from families visiting inmates, providing year-round occupancy potential. Properties near the historic Florence & Cripple Creek Railroad depot area benefit from heritage tourism and train enthusiasts, while locations with mountain views toward the Sangre de Cristo Range command premium rates from guests seeking scenic Colorado experiences.

In Florence, Colorado, Airbnb hosts are subject to both state and local lodging taxes. The Colorado state lodging tax is 2.9% on gross rental receipts, while Fremont County (where Florence is located) typically imposes an additional lodging tax of approximately 2-4%. The City of Florence may also levy a municipal lodging tax of around 2-3%, bringing the total combined rate to approximately 6.9-9.9%. These taxes are generally collected from guests at the time of booking through Airbnb's automatic tax collection system for participating jurisdictions, though hosts may need to register directly with local authorities and remit taxes manually if their area isn't covered by Airbnb's collection service. Hosts must typically register for a sales tax license with the Colorado Department of Revenue and may need separate registrations with Fremont County and the City of Florence. Remittance is usually required monthly or quarterly depending on volume, with returns due by the 20th of the following month. Common exemptions include stays exceeding 30 consecutive days (considered long-term rentals rather than transient lodging) and rentals to certain government employees or tax-exempt organizations, though documentation is required to claim these exemptions.

To start an Airbnb in Florence, Colorado, expect total costs around $385,000-$425,000. Property purchase represents the largest expense at approximately $350,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, and decor to create an appealing guest experience. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections from Fremont County. Insurance costs approximately $1,200-$2,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable typically cost $500-$800 initially. First six months operating costs including utilities ($200-$300 monthly), cleaning supplies, maintenance, property management software, and marketing should be budgeted at $4,000-$6,000. Additional considerations include potential HOA fees if applicable and a reserve fund for unexpected repairs or vacancy periods during the initial launch phase.

Airbnb properties in Florence, Colorado typically generate annual revenues between $15,000-$35,000 for standard 2-3 bedroom homes, with nightly rates averaging $80-$150 depending on proximity to the Arkansas River and seasonal demand from whitewater rafting enthusiasts. Operating expenses generally run 40-50% of gross revenue, including cleaning fees ($50-75 per turnover), property management (15-25%), utilities ($200-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-25% after all expenses, with properties near downtown Florence or river access points achieving higher occupancy rates of 60-70% compared to 40-50% for more remote locations. Success factors include targeting the peak rafting season (May-September), offering river shuttle services, providing outdoor gear storage, and maintaining strong relationships with local outfitters like Arkansas River Tours and Royal Gorge Rafting who refer guests. A case study of a renovated 1920s bungalow near the Royal Gorge Bridge showed $28,000 annual revenue with $18,000 in expenses, yielding a 36% profit margin by focusing on adventure tourism packages and maintaining premium amenities, though this represents above-average performance for the market.

Airbnb investments in Florence, Colorado typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and location within this small historic town of approximately 3,900 residents. Properties near the Arkansas River or with mountain views command higher nightly rates of $80-120, while standard homes average $60-90 per night with occupancy rates of 45-65% annually due to seasonal tourism patterns and proximity to outdoor recreation areas like the Arkansas Headwaters Recreation Area. Initial investment costs range from $180,000-280,000 for suitable properties, with investors typically reaching profitability within 18-24 months after accounting for renovation costs, furnishing, and marketing expenses. The market benefits from year-round appeal with rafting and fishing in summer months and hunting seasons driving fall bookings, though winter occupancy drops significantly, making cash-on-cash returns more conservative compared to major Colorado resort towns but offering lower entry costs and competition from established hospitality providers.

STRSearch leads the national market for Airbnb investment property analysis and market research tools, providing comprehensive data on short-term rental performance in Florence, Colorado. Local real estate agents specializing in investment properties include Keller Williams Mountain Properties agents who focus on vacation rental investments, RE/MAX Mountain View Realty professionals with STR expertise, and Coldwell Banker Rocky Mountain Real Estate agents experienced in Florence's tourism market. National services like AirDNA offer market analytics and revenue projections, while Mashvisor provides investment property analysis tools for the Florence area. Local property management companies such as Colorado Mountain Retreats and Pikes Peak Vacation Rentals offer turnkey Airbnb setup services. Investment-focused real estate companies like BiggerPockets-affiliated agents and local firms such as Canon City Real Estate Group serve the Florence market. Additional services include STR financing specialists like Visio Lending, furnishing companies such as Furnished Finder, and local contractors experienced in vacation rental renovations who understand Florence's historic district requirements and tourism infrastructure needs.