Is Lakewood, Colorado Good for Airbnb Investment?

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

• Presents a promising opportunity, influenced by its strategic location and a robust local economy.
• Lakewood benefits from its proximity to Denver, attracting visitors who seek a more suburban feel with easy access to city amenities, outdoor recreation in the nearby Rocky Mountains.
• Current market conditions show a steady demand for short-term rentals, fueled by both tourism and business travel.
• Property values in Lakewood have seen consistent appreciation, making it an attractive area for real estate investment, though this also translates to higher initial investment costs.
• The investment potential is strong for properties that can cater to a diverse range of guests, from outdoor enthusiasts to those visiting for work or leisure in the Denver metropolitan area.

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

• Based on available market data and rental analytics, Airbnb hosts in Lakewood, Colorado typically earn between $1,200 to $3,500 per month.
• Seasonal variations show peak earnings during summer months (June through August) when revenue can increase by 25-40% due to outdoor recreation tourism and proximity to Denver attractions.
• Spring and fall represent moderate earning periods with relatively stable occupancy rates around 65-75%.
• Key factors affecting earnings include property size and amenities, with entire homes outperforming private rooms by approximately 60-80%, proximity to downtown Denver and recreational areas like Bear Creek Lake Park.
• Properties within walking distance of light rail stations or major attractions command premium rates of $20-40 per night above average.
• Market saturation in certain neighborhoods has created downward pressure on rates, making property differentiation and exceptional guest experiences crucial for maintaining above-average earnings in this competitive Front Range market.

Potentially strong—typical annual ROI is 8–14%.

• Typically generate ROI between 8-14% annually, with properties near Red Rocks Amphitheatre and downtown Denver access points performing at the higher end of this range.
• The average payback period for initial investment ranges from 7-12 years depending on property type and location.
• Compared to traditional long-term rentals in Lakewood which average 6-9% ROI, short-term rentals can provide 2-5 percentage points higher returns due to nightly rates averaging $85-150 versus monthly rents of $1,400-2,200 for comparable properties.
• However, Airbnb investments require higher operational involvement with cleaning, maintenance, and guest management costs typically consuming 25-35% of gross revenue.
• Properties within 15 minutes of Red Rocks or with mountain views command premium rates and achieve occupancy rates of 65-75% annually, while standard residential properties average 55-65% occupancy.

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

• Airbnb occupancy rates in Lakewood, Colorado typically average around 65-70% annually, with significant seasonal variation that peaks during summer months (June through August) at approximately 75-85% occupancy due to increased tourism and outdoor recreation activities in the nearby Rocky Mountains.
• Winter months generally see lower occupancy rates of 45-55%, except during ski season periods when rates can climb to 70-75%.
• Spring and fall shoulder seasons maintain moderate occupancy levels around 60-65%.
• Lakewood's occupancy rates generally align closely with Colorado's statewide average of 68-72% but tend to run slightly below Denver metro area averages of 72-76% due to its more suburban location.
• Compared to national Airbnb averages of 48-52%, Lakewood performs significantly better, benefiting from Colorado's strong tourism industry and proximity to major attractions like Red Rocks Amphitheatre and easy access to mountain recreation areas, though it doesn't quite reach the premium occupancy rates of 80-90% seen in prime mountain resort towns like Aspen or Vail.

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

• The best Airbnb investment neighborhoods in Lakewood include Belmar, which offers excellent rental potential due to its walkable downtown area with shopping, dining.
• The Green Mountain area provides strong investment opportunities with its proximity to hiking trails and outdoor recreation while maintaining affordable property prices and appealing to adventure-seeking guests.
• Bear Creek neighborhoods near Bear Creek Lake Park and the greenbelt system offer premium pricing power due to scenic locations and outdoor amenities that command higher nightly rates from nature enthusiasts.
• The Applewood area presents solid investment potential with its established residential character, proximity to downtown Denver via light rail.
• Westgate neighborhoods benefit from their central location between Denver and the mountains, offering good occupancy rates from guests wanting easy access to both urban and outdoor attractions.
• The areas near Lakewood Cultural Center and Lakewood Heritage Center provide unique positioning for guests interested in arts and local culture.
• Finally, neighborhoods near the Federal Center offer consistent demand from government contractors and business travelers.

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

• Lakewood, Colorado requires short-term rental operators to obtain a business license and register their property with the city.
• Properties are generally limited to a maximum occupancy of two people per bedroom plus two additional guests, with total occupancy not exceeding 10 people regardless of bedroom count.
• The city does not require owner-occupancy for short-term rentals, allowing both primary residences and investment properties to operate as vacation rentals.
• Short-term rentals are permitted in most residential zoning districts including single-family and multi-family zones.
• The registration process involves submitting an application with property details, proof of insurance, emergency contact information.
• Recent changes implemented around 2022-2023 have strengthened noise ordinance enforcement, required 24-hour local contact availability, mandated parking compliance with one space per bedroom.

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

• Short-term rentals in Lakewood, Colorado are subject to several fees and taxes including a state lodging tax of 2.9%, Jefferson County lodging tax of approximately 1-2%, and city of Lakewood lodging tax of around 3-4%.
• Property owners must obtain a short-term rental license which typically costs between $200-400 annually, plus an initial registration fee of approximately $100-150.
• Sales tax of 2.9% state rate plus local rates totaling around 7-8% applies to rental income.
• Additional requirements may include a business license costing $50-100 annually, potential HOA fees if applicable, and compliance costs for safety inspections which can range from $100-300.
• Some properties may also be subject to improvement district fees or special assessments that vary by location within Lakewood.