STR Feasibility · Colorado Springs
Is Your Colorado Springs Home a Good Short-Term Rental?
Published · By Jake, Sun Mountain Stays
Short answer
Whether your Colorado Springs home can be a short-term rental is a zoning question before it's a revenue question. If you'll live there at least 185 days a year, most residential zones allow it. If you won't (a pure investment property), the city bars non-owner-occupied STRs in single-family zones for applications submitted after December 26, 2019, and applies a 500-foot separation rule and unit caps elsewhere. Pass the zoning test and the permit itself is a $124.95 annual fee with a roughly 10-business-day review. Verify your parcel's zoning and current eligibility at coloradosprings.gov/str before assuming a property pencils out.
The first test: zoning, not curb appeal
Before you evaluate bedrooms, decor, or comps, Colorado Springs' STR ordinance sorts every application into one of two tracks, and the track determines whether you can get a permit at all:
- Owner-occupied STRs: you must occupy the home at least 185 days per year. These are allowed in residential zones where the dwelling unit itself is permitted, giving owner-occupants the widest eligibility.
- Non-owner-occupied STRs: for applications submitted after December 26, 2019, these are not permitted in single-family zones (city zoning codes R-E, R-1 6, R-1 9, and Single-Family PDZs). In other zones, a non-owner-occupied STR must sit at least 500 feet from another non-owner-occupied STR.
- Unit caps apply by zoning district: one listing maximum in single-family zones, two in R-2 zones, up to four in multi-family zones, and two maximum per owner in condominiums.
How to check your property's zoning before you commit
Your parcel's zoning designation, not the neighborhood's general reputation, decides which track applies. Confirm zoning through the city's development services portal or a pre-application inquiry before you buy, furnish, or list a property. If you already own the property and aren't sure which zone it sits in, this is the first call to make, not the last.
The cost of entry: permit fee and process
Once a property passes the zoning test, the permit itself is straightforward. As documented at coloradosprings.gov/str:
- Annual permit fee: $124.95 per unit. Each separate unit needs its own permit and fee.
- City staff has 10 business days to review a submitted application; incomplete applications are rejected outright.
- There is no grace period for late renewals, letting a non-owner-occupied permit lapse can mean forfeiting it under the current rules.
- If you book directly (not through Airbnb, Vrbo, or another marketplace facilitator), you need your own city sales tax license before the STR permit is issued. Marketplace facilitators are required to collect and remit Colorado Springs sales tax on your behalf.
Beyond zoning: what actually makes a property perform
Passing the zoning test only means you're allowed to operate. It doesn't tell you whether the property will earn well. The variables that actually move revenue are proximity to demand drivers (Fort Carson, Peterson Space Force Base, the Air Force Academy, Garden of the Gods, downtown), bedroom count and layout, furnishing quality, and how actively the listing is managed and priced. We don't print a generic revenue number here, see the companion guide on Colorado Springs Airbnb revenue for how to pull property-specific market data from AirDNA or Rabbu, or use the Sun Mountain Stays Revenue Estimator at /#estimator.
HOA rules sit on top of, not instead of, the city permit
A valid city STR permit does not override your HOA's CC&Rs. Many Colorado Springs condo and planned-community HOAs restrict or prohibit short-term rentals independently of the city's zoning rules. If you're evaluating a property in an HOA community, read the governing documents before assuming the city permit is the only approval you need.
If your property fails the zoning test, it isn't automatically a dead end
A non-owner-occupied property in a single-family zone can't be permitted as an STR under the current rules, full stop. That doesn't mean the property has no path to rental income, it means the honest next comparison is long-term renting instead. See our companion guide, Airbnb vs. long-term renting in Colorado Springs, for how the two paths actually compare on tax treatment, income stability, and management workload.
Getting a real answer for your specific address
This guide explains the rules that apply broadly. Your specific parcel's zoning, HOA status, and revenue potential require checking your address directly. Confirm zoning eligibility at coloradosprings.gov/str, then book a free walkthrough with Jake for a property-specific read on whether it's a fit for management.
Frequently Asked Questions
Can I Airbnb my Colorado Springs home if I don't live there?
It depends on your zoning district. Non-owner-occupied STRs are not permitted in single-family zones (R-E, R-1 6, R-1 9, Single-Family PDZs) for applications submitted after December 26, 2019. In other zones, a 500-foot separation rule from other non-owner-occupied STRs applies. Verify your parcel's zoning at coloradosprings.gov/str.
What does 'owner-occupied' mean for a Colorado Springs STR permit?
The city requires the owner to occupy the home at least 185 days per year for it to qualify as an owner-occupied STR. Owner-occupied STRs are allowed in residential zones where the dwelling unit itself is permitted, the broadest eligibility of the two permit tracks.
How much does a Colorado Springs STR permit cost and how long does approval take?
The annual permit fee is $124.95 per unit, and city staff has 10 business days to review a submitted application. There is no grace period for late renewals. Verify current fees at coloradosprings.gov/str, as they are subject to change.
How many STR units can I have on one property in Colorado Springs?
It depends on the zoning district: one listing maximum in single-family zones, two in R-2 zones, up to four in multi-family zones, and a maximum of two per owner in condominiums.
Do I need a sales tax license to run a Colorado Springs Airbnb?
If you book exclusively through a marketplace facilitator like Airbnb or Vrbo, that platform is required to collect and remit the city's sales tax for you. If you also book directly, you need your own Colorado Springs sales tax license before the STR permit is issued.
What if my property isn't eligible for a non-owner-occupied STR permit?
You have real options, just not that one. Owner-occupied hosting (185+ days/year residency) may still be available depending on your zone, or the property may work better as a traditional long-term rental. See our Airbnb vs. long-term renting comparison for how the two paths differ on tax treatment and management.
Does my HOA affect STR eligibility separately from city zoning?
Yes. A valid city permit does not override HOA rules. Many Colorado Springs condo and planned-community HOAs restrict or prohibit short-term rentals in their CC&Rs independently of city zoning. Review your HOA documents before assuming a property is eligible.
Sources & Official Links
Regulations and fees change. Always verify current rules at the official city source before listing your property.
Sun Mountain Stays
Ready to see what your property can earn?
Jake manages short-term rentals in Colorado Springs and Denver, handling permits, guests, pricing, and everything in between. Book a free walkthrough to get a property-specific revenue estimate and learn what hands-off ownership actually looks like.