Is Frisco, Colorado Good for Airbnb Investment?

To start an Airbnb in Frisco, Colorado, begin by researching local regulations through the Town of Frisco's planning department, as Summit County requires short-term rental licenses and Frisco has specific zoning restrictions limiting rentals to certain residential areas with a maximum occupancy typically around 10-12 people depending on property size. Obtain necessary permits including a Summit County short-term rental license ($200-400 annually), Colorado state sales tax license, and ensure compliance with fire safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property in approved zones (avoid deed-restricted affordable housing areas common in Frisco), considering proximity to ski resorts like Copper Mountain and Keystone which are major draws. Furnish the property with mountain-appropriate amenities including warm bedding, outdoor gear storage, ski equipment racks, and ensure reliable internet since many guests work remotely; budget $15,000-30,000 for complete furnishing depending on property size. List your property on Airbnb and VRBO with professional photography highlighting mountain views and proximity to outdoor activities, setting competitive rates ($150-400/night depending on season and size). Manage the property by establishing relationships with local cleaning services ($80-150 per turnover), maintenance contractors familiar with mountain climate challenges, and consider property management companies like Vacasa or RedAwning which operate in Summit County if you're not local, typically charging 20-35% of rental income for full-service management.

To identify profitable short-term rental properties in Frisco, Colorado, focus on locations within walking distance of Main Street's shops and restaurants, properties with mountain or lake views, and those offering easy access to skiing at Copper Mountain, Keystone, or Breckenridge (typically 10-20 minutes away). Target 2-4 bedroom properties built after 1990 with mountain cabin aesthetics, hot tubs, fireplaces, updated kitchens, and adequate parking for multiple vehicles, as these features command premium rates of $200-400+ per night during peak ski season (December-March) and summer months (June-August). Analyze comparable properties on Airbnb and VRBO within a 2-mile radius, noting their occupancy rates, seasonal pricing variations, and guest reviews to identify gaps in the market. Research local competition by monitoring properties with similar amenities and capacity, focusing on those generating $60,000-120,000 annually in gross revenue. Utilize tools like AirDNA for market analytics, STR Helper for performance tracking, and Mashvisor for investment analysis, while consulting Summit County's short-term rental regulations and working with local property management companies like Summit County Mountain Retreats or RedAwning who understand Frisco's seasonal demand patterns, optimal pricing strategies, and guest expectations for this high-altitude resort market.

To obtain an Airbnb/STR permit in Frisco, Colorado, you must apply through the Town of Frisco Planning Department located at 1 Main Street or online via their municipal website portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, floor plan showing maximum occupancy, parking plan demonstrating adequate off-street parking, waste management plan, emergency contact information for a local representative within 30 minutes of the property, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $200-300 with an annual renewal fee of $150-200. The review process typically takes 4-6 weeks from submission of a complete application, including a 14-day public notice period and potential planning commission review. Frisco-specific requirements include maximum occupancy limits based on bedrooms (typically 2 people per bedroom plus 2 additional), mandatory quiet hours from 10 PM to 7 AM, required posting of house rules and emergency contact information inside the property, compliance with parking requirements (minimum 2 spaces for most properties), and adherence to the town's good neighbor standards which include noise restrictions and proper waste disposal protocols.

Short-term rentals (STRs) are legal in Frisco, Colorado, but operate under specific regulations established by the town. As of 2023, Frisco requires STR operators to obtain a business license and comply with occupancy limits, parking requirements, and noise ordinances. The town limits the number of guests based on bedroom count and requires properties to have adequate parking spaces for guests. STRs are generally prohibited in certain residential zones or may face restrictions in specific neighborhoods to preserve community character. Property owners must also collect and remit local taxes, maintain the property in good condition, and provide emergency contact information to the town. Recent changes have included stricter enforcement of existing regulations and potential caps on the total number of STR permits issued to balance tourism revenue with housing availability for local residents. Violations can result in fines and permit revocation, and the town has been actively monitoring compliance through complaint-based enforcement and periodic inspections.

The best areas for Airbnb investment in Frisco, Colorado are the Historic Downtown District, which attracts tourists year-round with its walkable Main Street featuring restaurants, shops, and proximity to Lake Dillon, making it ideal for both summer and winter visitors; the Peninsula neighborhood near the Frisco Peninsula Recreation Area, offering lakefront access and stunning mountain views that command premium rates during peak seasons; areas near the Frisco Adventure Park and Frisco Nordic Center, which draw families and outdoor enthusiasts for skiing, mountain biking, and hiking activities; neighborhoods within walking distance of the Frisco Transit Center, providing easy access to ski resorts like Keystone, Breckenridge, and Copper Mountain, making them highly desirable for ski tourists; and properties near the Frisco Bay Marina, which attract boating enthusiasts and summer recreation visitors who pay higher rates for water access and scenic locations, with all these areas benefiting from Frisco's position as a central hub for Summit County recreation and its strong year-round tourism economy driven by both winter sports and summer outdoor activities.

Airbnb properties in Frisco, Colorado are subject to multiple lodging taxes including the Colorado state lodging tax of 2.9%, Summit County lodging tax of 1.9%, and the Town of Frisco lodging tax of 4.5%, totaling approximately 9.3% in combined lodging taxes. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Colorado around 2017-2018. Airbnb remits these taxes quarterly to the appropriate jurisdictions including the Colorado Department of Revenue, Summit County, and the Town of Frisco on behalf of hosts. Additionally, properties may be subject to Colorado state sales tax of 2.9% and local sales taxes. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than short-term lodging, and some jurisdictions may exempt stays by government employees on official business. Hosts should verify their registration requirements with local authorities as some may require separate business licenses or short-term rental permits beyond the tax collection handled by Airbnb.

To start an Airbnb in Frisco, Colorado, expect total costs around $850,000-$950,000. Property purchase represents the largest expense at approximately $750,000-$800,000 for a median 2-3 bedroom condo or townhome suitable for short-term rentals in this popular ski town. Furnishing costs will run $25,000-$35,000 for quality mountain-style furniture, appliances, linens, and décor that appeals to vacation renters. Initial setup including professional photography, listing creation, and marketing materials costs around $2,000-$3,000. Permits and fees total approximately $1,500-$2,500, including short-term rental licenses, business registration, and town compliance requirements. Insurance for short-term rentals runs $3,000-$4,000 annually, with the first year paid upfront. Utility setup and deposits cost around $1,000, while six months of operating expenses including utilities ($800/month), cleaning services ($150 per turnover, estimated 8 turnovers monthly), property management software ($50/month), supplies and maintenance ($300/month), and marketing ($200/month) total approximately $12,000-$15,000. Additional considerations include potential HOA fees of $200-$400 monthly and a cash reserve for unexpected repairs or vacancy periods.

Airbnb properties in Frisco, Colorado demonstrate strong profitability potential with average nightly rates ranging from $200-400 during peak ski season (December-March) and $150-250 in summer months, generating annual revenues of $45,000-75,000 for well-positioned properties. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, utilities averaging $200-300 monthly, and property taxes around $3,000-6,000 annually, resulting in net profit margins of 35-45% for efficiently managed properties. Success factors include proximity to ski resorts like Copper Mountain and Keystone (within 15 minutes), modern amenities like hot tubs and mountain views, professional photography, and dynamic pricing strategies that capitalize on peak demand periods including holidays and powder days. Properties near Main Street or with lake access command premium rates, with some luxury 4-bedroom homes generating over $100,000 annually, while smaller 2-bedroom condos typically yield $35,000-50,000, making the market particularly attractive for investors who can maintain high occupancy rates of 60-75% through effective marketing and guest experience management.

Airbnb investments in Frisco, Colorado typically generate annual ROI of 12-18% due to the town's proximity to major ski resorts like Copper Mountain and Keystone, with peak winter occupancy rates reaching 75-85% and average daily rates of $250-400 during ski season. Cash-on-cash returns generally range from 8-14% annually, with properties requiring initial investments of $600,000-$1,200,000 for suitable vacation rental units. Most investors achieve profitability within 18-24 months, benefiting from both rental income and property appreciation averaging 6-8% annually in Summit County's competitive mountain real estate market. Summer months contribute additional revenue through hiking and mountain biking tourism, with occupancy rates of 60-70% and ADRs of $180-280, while shoulder seasons typically see 40-50% occupancy at $150-220 nightly rates.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Frisco, Colorado. Local real estate agents like Summit County Properties and Breckenridge Associates have extensive experience with vacation rental investments in the Frisco area, understanding the seasonal rental patterns and zoning regulations specific to Summit County. National services such as AirDNA provide market analytics and revenue projections for Frisco properties, while Mashvisor offers investment property analysis tools that include Airbnb profitability estimates for the Colorado mountain market. RedAwning and Vacasa offer property management services that can help investors maximize their rental income in Frisco, with Vacasa having a strong presence in Colorado ski towns since 2009. Local companies like Summit County Real Estate Group and Frisco Bay Marina Real Estate have been serving the area since the early 2000s and understand the unique dynamics of lakefront and ski-accessible properties that perform well as short-term rentals. BiggerPockets, founded in 2004, provides educational resources and networking opportunities for real estate investors, including those focused on the Colorado vacation rental market, while Roofstock has been expanding its short-term rental investment platform to include mountain resort markets like Frisco since 2015.