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Discover Airbnb Property Investment Profitability in Denver, Colorado

airbnb property investment Denver

The inspiring Denver City is popular all over the world due to the rocky mountains’ magnificent view. While there are property investors in Denver who aim to engage with tourists as potential clients, the good news is that the economy in Devor is strong – perfect for earning a passive income! 


The idea of becoming a property owner is intimidating for many since these investments are large and long-term. However, you can be at peace knowing that the economy (in Denver) will remain strong.

– Mavi Unlimited on Denver Property Investment

To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Denver. Based on an article about Airbnb occupancy rates by city, an average host in Denver can earn up to $37,140 annually for a 1-bedroom apartment during the peak season from August – September.

Denver offers a lot of affordable real estate properties with a promising rental demand, but it’s always best to learn about your potential profitability before starting to invest. In this article, we’ll discuss the metrics in order to gauge the best property investment.

This includes the best website recommendations for property investment in Denver, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!

Why Invest in a Property in Denver?

In Denver, locals and visitors alike can enjoy different activities, whether you’re looking for challenging outdoor experiences, exploring a vibrant cultural scene, or just relaxing while looking at stunning landscapes, this city will never disappoint! But what else is there to know? Here are some of the major reasons why you should consider buying a property for Airbnb in Denver:

1. Denver’s economy is strong

Denver is home to big companies as well as many startups! Its job market is booming, this plays an important role as well since it attracts many young and senior professionals alike to the city. In fact, the unemployment rate in Deven is 3.4%, which is lower than the national average (6.0%).

2. The student market in Denver

Aside from major companies, many renowned Universities also call Denver home. We can find the University of Colorado Denver, Regis University, the University of Colorado Anschutz Medical Campus and many others. Thanks to this, the city attracts students from different cities and states.

3. Great place for nature lovers

Denver offers a wide catalog when it comes to outdoor activities and breathtaking landscapes thanks to its proximity to the Front Range of the Rocky Mountains and on top of that, it has a pleasant wheater. This allows locals and visitors alike to enjoy everything that Denver’s nature has to offer. In fact, just in 2021, Denver welcomed more than 31M tourist arrivals!

Expectations When Buying A Property in Denver

Aside from the pros of investing in a property in Denver, let’s discuss some of the cons so you can know what to expect when living in this fascinating city. It’s always better to look at the two sides of each coin in order to properly set your expectations!

1. High cost of living & real estate

The cost of living is something that should also be considered when choosing a location to invest in. Unfortunately, this is a downside in Denver because the average cost of living is 16% higher than the national average, In addition to this, the median property price is also more expensive, currently, the value is at ($623K).

2. Traffic in Denver is a nightmare!

As a major metropolitan area, you will surely run into Denver’s heavy traffic. Here, you will get stuck in long delays, even if you’re in the suburbs, especially during rush hours. Moreover, the public transportation here is very limiting and most of them don’t go beyond the metro area, which turns out into a problem since it gets really difficult to go around Denver if you don’t have a car.

Best Neighborhoods for Airbnb in Denver

Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Denver. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:

1. Five Points
  • Annual Revenue: $52,053
  • Occupancy Rate: 90%
  • Average Daily Rate: $144
2. Hampden South
  • Annual Revenue: $36,052
  • Occupancy Rate: 90%
  • Average Daily Rate: $86
3. Sloan Lake
  • Annual Revenue: $50,113
  • Occupancy Rate: 81%
  • Average Daily Rate: $149

airbnb property investment Denver

Is Property Investment Profitable in Denver City Center?

Using a short-term rental income calculator, it was discovered that a 3-bedroom apartment in Denver City Center can generate an annual revenue of $68,745 with a steady occupancy rate of 84% and a nightly rate of $200.

airbnb property investment Denver

airbnb property investment Denver

Homes for Sale in Denver, CO

Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage. 

At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts.  Some of the preferred neighborhoods in Denver are Ridgewood Lakes, Highgate Park, and Tuscan Hills. Here are some of the profitable properties in Denver City Center along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property investment Denver
airbnb property investment Denver

1302 S Parker Rd #221, Denver, CO 80231

1. Studio-type Property for Sale Denver
  • Near Copper Kettle Brewing Company
  • Asking Price: $130,000
airbnb property investment Denver
airbnb property investment Denver

8826 E Florida Avenue Unit 102, Denver, CO 80247

2. 1-Bedroom Type Property for Sale Denver
  • 0.1 miles to Village East Community Elementary School
  • Asking Price: $144,900
airbnb property investment Denver
airbnb property investment Denver

5995 E Iliff Ave #214, Denver, CO 80222

3. 2-Bedroom Type Property for Sale Denver
  • Near Holly Heights Nursing Care Center
  • Asking Price: $165,000
3-bedroom Denver
3-bedroom Denver

1360 Racine St, Aurora, CO 80011

4. 3-Bedroom Type Property for Sale Denver 
  • 0.4 miles to Vaughn Elementary School
  • Asking Price: $235,000
4-bedroom Denver
4-bedroom Denver

4052 S Yosemite St, Denver, CO 80237

5. 4-Bedroom Type Property for Sale Denver 
  • 0.4 miles to Samuels Elementary School
  • Asking Price: $380,000


Investing in a property is certainly a huge step, hence, it’s essential to conduct market research for accuracy. With the various industries and outdoor activities to do in Denver, it can generate a nice cash flow for property investors as long as the right neighborhood is targeted and potential revenue is calculated using an Airbnb rental arbitrage calculator.. However, it’s not recommended for property investors with a limited budget as the cost of living and real estate market are more expensive than the national average. There are certainly other cities in Colorado that one can discover!

Airbnb Rules Blog posts

Airbnb Rules in Colorado

Colorado offers various kinds of outdoor activities and has exquisite landscapes. Tourism has certainly increased in the state of Colorado. Therefore, property investors and future Airbnb hosts in Colorado should learn about its legality in certain counties such as El Paso, Denver, and Boulder, along with its chances of profitability!

In this article, we featured Airbnb regulations in Colorado, along with the new Airbnb laws in Denver. Continue reading and learn more about the Airbnb laws in Colorado.

Is Airbnb legal in Denver, Colorado? 

To cut the story short, yes – Airbnb is legal in Colorado! In fact, there have been 84.2 million visitors annually in Colorado. As of August 2022, there are 49,888 nights available in Denver from Airbnb alone. Blueground manages 61 listings, while Espadín and Kathryn operate 40 and 26 respectively.

How much can I make by running an Airbnb in Denver?

Currently, there are 2,950 Airbnb listings in Denver, with 81% of entire houses earning up to $3,863 a month. The Average Occupancy Rate in Denver is 82% and the average daily rate is $125. According to short-term rental market data source Airbtics, a 2-bedroom apartment in Denver can make up to $64,928 annually. Check out our Short-term Rental Estimator and discover how much profit you can make with Airbnb! 

airbnb rules colorado

Short-term Rental Laws in Colorado

  1. Depending on local & county requirements, licenses or permits are required to operate STRs. On a side note, Durango and Breckenridge cap STR permits and have long permit waiting lists
  2. In counties and municipalities that require STR licenses or permits, those licenses and permits are typically effective for 1 or 2-year terms and must be renewed before such period expires
  3.  Proof of insurance is typically required & there should be a point person who must be available 24 hours a day to respond to emergencies
Short-term Rental Laws in Denver
  • It is required to have a license to offer a short-term rental in a primary residence in Denver
  • The license applicant must provide a valid Colorado driver’s license or state identification card, along with at least two other documents to demonstrate primary residency
  • Denver does not allow investor-owned STRs or multiple licenses per person
Short-term Rental Laws in Colorado Springs
  • Owner-occupied STR units are allowed in lawful dwelling units in zones where residential units are allowed
  •  Non-owner-occupied STRs are not permitted in single-family zoning districts and must be 500 feet from another permitted STR unit
  • The number of licenses to one permit per lawful dwelling unit is limited by the Colorado Springs City Council
  • The use of STRs for commercial or large social events, including weddings, is prohibited
  • Owners of a condominium or similar building are limited to two STR units per property
Short-term Rental Laws in Boulder 
  • It is required to have a valid license for all rental properties in Boulder. In relation to this, it is also required to obtain an STR license before advertising their property for rent, and the property must be the owner’s principal residence.
  • An accessory unit or a principal dwelling unit on a single-family lot or parcel with an accessory unit may not be rented as an STR unless certain additional requirements are met, and it may not be rented for more than 120 days in a calendar year.
  • The name on the license must be the same as the name on the deed for the property, and the owner must be a natural person, trust, or nonprofit organization.
how much can you make on airbnb

Hosts & Property investors in Colorado

According to local investors and real estate brokers in Colorado, it is currently difficult to get permits to operate short-term rentals in Colorado. Before starting an Airbnb business, it is advisable to call the permitting office and let them know in advance regarding your plans to do short-term rental business in your preferred area. This way, you’ll be able to expect certain challenges and find solutions to overcome them in advance.

But is it getting harder to get permits? Absolutely, yes. And counties and cities are tightening the rules all the time. Breckenridge just passed a law limiting the number of nights that can be rented. A neighbor of mine decided to sell his STR as a result. Super high selling price and limited rentals — why NOT sell? So he did. You’ve got to do very market-specific research. Some counties will allow it, and even the city, but then not the HOA.” 

– Erik Stenbakken
Investor in Northern Colorado


In my personal opinion, the biggest advantage of running a short-term rental is high return! I’ve talked to hundreds of Airbnb hosts over the past years and frequently met hosts making 15 – 30% gross rental yields, and 10-20% net. It’s also fun to do! 

Airbnb Data
Airbnb Data

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