Top Locations in Denver for High Airbnb Occupancy and Profitability

Jan 7

6 min read

Welcome to the ultimate guide to Airbnb investment in Denver, Colorado! Known as the "Mile High City," Denver combines vibrant city life, rich cultural experiences, and a gateway to world-class outdoor adventures. Whether you're an experienced investor in short-term rentals or just beginning to explore the Airbnb market, Denver offers some prime opportunities for strong occupancy rates and rental income. Top Locations in Denver for High Airbnb Occupancy and Profitability await savvy investors looking to maximize returns.

In this guide, we’ll cover the best Denver neighborhoods and nearby Colorado towns for Airbnb investment, digging into metrics like occupancy rate, average daily rate (ADR), and potential rental income. We’ll also go over some essential tips for navigating Denver’s local regulations, managing your property, and maximizing revenue. Ready to dive in? Let’s explore why Denver could be the perfect place to start or expand your Airbnb portfolio.

Denver Metro Area Regulations: Know Before You Go

Before diving into any investment, it’s essential to understand Denver’s short-term rental regulations. In the heart of Denver, short-term rentals are only allowed in primary residences, meaning you can't purchase a property solely for Airbnb rental unless you live there. This rule aims to protect housing availability for locals while maintaining city standards. However, Denver’s surrounding metro area, including neighborhoods like Northglenn, Centennial, and Lakewood, offer Airbnb investment potential without the same restrictions.

If you're considering buying a property, understanding local zoning laws, permit requirements, and short-term rental licensing procedures is key to success. Each neighborhood around Denver has its own set of rules, and staying compliant ensures that your investment remains profitable. Remember, Denver’s market isn’t a “set it and forget it” deal, understanding and adapting to regulations is a part of maintaining a profitable rental.

Top Locations in Denver for High Airbnb Occupancy and Profitability

While Denver proper enforces restrictions on short-term rentals, several neighborhoods are still popular with travelers and provide excellent opportunities for high Airbnb occupancy rates. Here are some top neighborhoods:

Five Points

Five Points is a neighborhood rich in history and culture, with deep roots in jazz music and a thriving nightlife. The central location provides easy access to Denver’s downtown, making it a hotspot for tourists. From soul food eateries to live music venues, Five Points delivers a unique local experience, which makes it a high-demand area for Airbnb stays.

Occupancy Rate: 90%
Average Daily Rate: $144
Potential Annual Revenue: $52,053 for a one-bedroom apartment

Hampden South

Located on the southern side of Denver, Hampden South offers a quiet suburban feel with easy access to city amenities. Known for its shops, restaurants, and local attractions, it’s a great choice for families or those looking for a peaceful yet convenient stay. With its high occupancy rate, Hampden South offers an appealing blend of affordability and potential profitability.

Occupancy Rate: 90%
Average Daily Rate: $86
Potential Annual Revenue: $36,052 for a one-bedroom apartment

Sloan Lake

Sloan Lake provides a relaxed, lakeside atmosphere that attracts travelers who want a balance of city life and nature. Popular activities here include paddle boarding, kayaking, and enjoying the scenic lakeside trails. For visitors who prefer a quieter stay with easy access to Denver’s urban center, Sloan Lake is the perfect choice.

These Denver neighborhoods all attract unique types of travelers, from history buffs to nature lovers. This diversity drives steady demand in these areas, making them strong contenders for Airbnb profitability.

Occupancy Rate: 81%
Average Daily Rate: $149
Potential Annual Revenue: $50,113 for a one-bedroom apartment

Colorado’s Mountain Resort Towns: Year-Round Revenue Potential

If you’re ready to take your investment beyond Denver, Colorado’s mountain resort towns are excellent Airbnb markets with a year-round appeal. These towns draw millions of visitors for skiing in the winter and outdoor adventures in the summer.

Breckenridge

Breckenridge is a classic Colorado mountain town, famous for its high-end ski resorts and historic charm. The high average daily rate here means that even with a moderate occupancy rate, you could see strong returns. However, property prices are high, so many investors look to nearby towns like Dillon and Frisco for more affordable options with similar potential.

Average Daily Rate: $392
Occupancy Rate: 65%
Potential Monthly Revenue: $5,060

Avon

Close to Beaver Creek and Vail, Avon attracts visitors who want the luxury ski experience without the hefty Vail price tag. In addition to skiing, Avon offers hiking, fishing, and a charming small-town vibe. The higher daily rate here provides excellent revenue potential for investors with a slightly higher initial budget.

Average Daily Rate: $490
Occupancy Rate: 55%
Potential Monthly Revenue: $5,049

Keystone

Keystone is a top pick for families, with skiing and snowboarding in the winter and golf and hiking in the summer. Though we don’t have exact numbers for average daily rate and occupancy rate here, its family appeal and affordable lodging make it a popular alternative to more expensive ski resorts.

Potential for Family-Friendly Rentals

Steamboat Springs

Steamboat Springs is known for its luxurious hot springs and upscale resorts. While property prices are high, this town draws affluent visitors willing to pay a premium for high-quality experiences. Though the investment costs are higher, the luxury appeal and year-round demand keep occupancy rates high.

Known for Hot Springs and High-End Ski Resorts

Mountain towns attract a consistent flow of tourists, so the right property in one of these locations can yield substantial rental income. If you’re willing to invest more in property management or high-end amenities, these towns can be a lucrative market.

Other Colorado Cities to Watch for Airbnb Investment

Denver and mountain towns aren’t the only spots for Airbnb success. Several Colorado cities balance urban appeal and natural beauty, attracting a steady flow of tourists and business travelers.

Boulder

With the University of Colorado and plenty of outdoor attractions, Boulder brings in a steady stream of visitors. While Boulder restricts short-term rentals to stays of 30 days or more, the high occupancy rate still makes it a stable option for Airbnb investing.

Average Daily Rate: $249
Occupancy Rate: 83%
Monthly Revenue: $3,478

Colorado Springs

Home to famous sites like Garden of the Gods and Pikes Peak, Colorado Springs combines affordability and high tourism rates, making it ideal for Airbnb investors seeking a lower initial investment cost.

Average Daily Rate: $175
Occupancy Rate: 80%
Monthly Revenue: $2,968

Fort Collins

Fort Collins is becoming a craft beer hub and has a strong cultural scene, attracting both tourists and business travelers. Its vibrant downtown and outdoor activities make it appealing for short-term rentals, even without exact market data.

Strong Craft Brewery Scene and Growing Economy

Black Hawk and Cripple Creek

These towns are casino capitals of Colorado and attract a steady influx of tourists year-round. Both towns offer affordable real estate, making them accessible options for investors with a tighter budget.

Known for Casinos and Historic Attractions

Tips for Airbnb Success in Denver

Whether you’re new to Airbnb investing or looking to optimize your existing listings, here are some top tips for Airbnb success in Denver:

Property Management

Strong property management makes all the difference. Keep guests happy and ensure smooth operations by investing in quality cleaning, maintenance, and communication. Using property management software can streamline these tasks, or consider hiring a local property manager if you’re a remote investor.

Listing Optimization and Marketing

Make your listing stand out by investing in high-quality photos, detailed descriptions, and competitive pricing. Highlight unique experiences or nearby attractions to make your property more appealing to potential guests. Promote your listing on social media and partner with local businesses to increase visibility.

Dynamic Pricing

Dynamic pricing tools adjust rates based on demand and seasonality, helping you capitalize on high-traffic times. During peak events or holidays, adjust prices to maximize profits while staying competitive with nearby listings.

Stay Compliant with Local Regulations

It’s crucial to stay updated on local regulations to avoid fines or penalties. In Denver, short-term rentals are heavily regulated, so consult with local authorities or legal experts to ensure compliance.

Conclusion: Why Denver and Colorado Are Hotspots for Airbnb Investment

Investing in Airbnb properties in Denver or its nearby Colorado mountain towns offers plenty of opportunities. From high occupancy rates in popular Denver neighborhoods like Five Points to the luxury rental markets in Breckenridge and Avon, there’s a market for nearly every investment strategy.

FootHills Fine Homes can make your Airbnb journey in Denver smoother and more profitable. If you're dreaming of owning a rental in Denver’s cultural hotspots, a serene spot by Sloan Lake, or a mountain retreat in Avon, FootHills Fine Homes gives you the strategy to make your investment journey as smooth as possible. So what are you waiting for? It's time to capitalize on Colorado's short-term rental potential.