Denver has strict short-term rental (STR) regulations that catch many investors off guard. Key rules as of 2026: you must have a Short-Term Rental license ($100/year) from the City and County of Denver. The property must be your primary residence — Denver does not allow short-term rentals on investment properties or second homes. You can only rent your primary home while you’re temporarily away, or rent a room while you’re present.
This effectively eliminates the Airbnb arbitrage model in Denver city limits. Violations carry fines of $150-$999 per day. Some Denver suburbs have different rules — Aurora, Lakewood, and unincorporated Jefferson County have less restrictive STR policies, but always verify current regulations before purchasing with STR income in mind. Denver’s official STR licensing page has current requirements. The mountain communities (Breckenridge, Vail, Steamboat) have their own rules and permit caps — research thoroughly before buying.