Denver's 3,760-listing STR market averages $212 ADR with strong summer demand but significant occupancy compression since 2021.
Market Overview
Denver is one of Colorado’s largest short-term rental markets, with 3,760 active listings as of February 2026. The city draws approximately 37.4 million visitors annually, supporting year-round STR demand across a wide spread of property types and neighborhoods.
The market has undergone meaningful compression over the past five years. Average annual occupancy peaked at 73.2% in 2021 and has since declined to a 2025 average of 54.3%, reflecting a combination of supply growth and shifting traveler patterns post-pandemic. Active listings grew from 3,613 in 2021 to a high of 4,457 in 2023, adding competitive pressure across the board. Supply contracted to a 2025 average of 4,238 listings, suggesting some natural market correction.
On the rate side, average daily rates have moved in the opposite direction: $166 in 2021, rising to $212 by 2025. This ADR growth has partially offset the occupancy decline, keeping average annual revenue at $3,575 in 2025, compared to $4,425 in 2021. February 2026 data shows $210.60 ADR and 38% occupancy, consistent with the market’s historically softer winter period.
Denver’s STR market is geographically diverse. Listings span from downtown and RiNo to Capitol Hill, Wash Park, and suburban corridors near Denver International Airport. The city’s access to Rocky Mountain ski resorts, major sports venues, a convention center, and a large corporate hub creates demand from multiple traveler segments throughout the year.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue | Active Listings |
|---|---|---|---|---|
| Jan | 49% | $179 | $2,779 | 4,098 |
| Feb | 53% | $175 | $2,683 | 4,087 |
| Mar | 61% | $167 | $3,412 | 3,955 |
| Apr | 63% | $171 | $3,487 | 3,965 |
| May | 66% | $186 | $4,083 | 3,756 |
| Jun | 69% | $200 | $4,633 | 4,092 |
| Jul | 71% | $203 | $4,883 | 4,354 |
| Aug | 69% | $194 | $4,504 | 4,328 |
| Sep | 68% | $194 | $4,282 | 4,286 |
| Oct | 64% | $191 | $4,019 | 4,063 |
| Nov | 57% | $185 | $3,260 | 4,065 |
| Dec | 54% | $191 | $3,290 | 4,094 |
Denver’s STR market follows a clear seasonal curve, with summer as the peak period and late winter as the softest stretch.
July is the strongest month historically, with 70.8% average occupancy and $203 average ADR, producing average monthly revenue of $4,883. June and August are close behind at 69.4% occupancy each, with ADRs of $200 and $194 respectively. The June through September window consistently produces the highest occupancy and revenue across the five-year dataset.
March through May represent a secondary demand period driven by spring travel and proximity to ski season’s tail end. May averages 66.0% occupancy at $186 ADR ($4,083 average revenue), making it one of the stronger non-summer months.
The slowest period runs November through February. January averages 49.4% occupancy at $179 ADR, producing $2,779 in average monthly revenue. February follows at 53.0% occupancy and $175 ADR ($2,683). Notably, December rates recover slightly to $191 ADR, likely reflecting holiday travel, but occupancy remains modest at 53.8%.
Occupancy swings from a low of approximately 49% in January to a peak of 71% in July, a 22-percentage-point range. This is a meaningful seasonal spread and should factor into annual revenue projections. Investors who model only summer performance will overestimate annual income. Blending the full seasonal curve produces the $3,575 monthly average seen in 2025 full-year data.
Revenue Breakdown
| Metric | 25th Pctile | Median | 75th Pctile | 90th Pctile |
|---|---|---|---|---|
| Revenue/mo | $756 | $1,626 | $2,925 | $4,680 |
| ADR | $111 | $158 | $248 | $393 |
| Occupancy | 17% | 37% | 55% | 74% |
Revenue in Denver’s STR market is distributed across a wide range. February 2026 data provides a current-period snapshot of the full percentile spread.
The bottom 25% of active listings (p25) generate $756 or less per month. The median listing (p50) produces $1,626 per month. The 75th percentile (p75) reaches $2,925 per month, and the top 10% of listings (p90) earn $4,680 or more per month.
Average revenue across all listings is $2,241 per month in February 2026, pulled above the median by high-performing outliers. This gap between median ($1,626) and mean ($2,241) signals meaningful performance dispersion, meaning property quality, location, and management quality drive large differences in actual income.
For annual planning purposes, the 2025 full-year average of $3,575 per month ($42,900 annualized) provides a more seasonally balanced benchmark than any single winter month. Top-quartile properties approaching the p90 level could realistically gross $56,000 or more annually. Median-level properties should be modeled at approximately $35,000 to $40,000 gross per year before platform fees, cleaning, taxes, and operating costs.
Investment Analysis
Revenue Trend
RevPAR & ADR Trend
| Date | Revenue | RevPAR | ADR |
|---|---|---|---|
| Mar 2021 | $4,265 | $138 | $153 |
| Apr 2021 | $4,209 | $140 | $157 |
| May 2021 | $4,535 | $146 | $163 |
| Jun 2021 | $4,668 | $156 | $171 |
| Jul 2021 | $5,062 | $163 | $175 |
| Aug 2021 | $4,942 | $159 | $175 |
| Sep 2021 | $4,582 | $153 | $173 |
| Oct 2021 | $4,560 | $147 | $174 |
| Nov 2021 | $3,732 | $124 | $160 |
| Dec 2021 | $3,692 | $119 | $159 |
| Jan 2022 | $3,416 | $110 | $154 |
| Feb 2022 | $3,388 | $121 | $158 |
| Mar 2022 | $3,906 | $126 | $161 |
| Apr 2022 | $4,102 | $137 | $167 |
| May 2022 | $4,446 | $143 | $177 |
| Jun 2022 | $4,946 | $165 | $183 |
| Jul 2022 | $5,274 | $170 | $193 |
| Aug 2022 | $4,681 | $151 | $178 |
| Sep 2022 | $4,605 | $154 | $181 |
| Oct 2022 | $4,385 | $141 | $176 |
| Nov 2022 | $3,647 | $122 | $168 |
| Dec 2022 | $3,494 | $113 | $161 |
| Jan 2023 | $3,018 | $97 | $157 |
| Feb 2023 | $2,844 | $102 | $155 |
| Mar 2023 | $3,516 | $113 | $165 |
| Apr 2023 | $3,411 | $114 | $165 |
| May 2023 | $4,085 | $132 | $173 |
| Jun 2023 | $4,753 | $158 | $189 |
| Jul 2023 | $4,905 | $158 | $198 |
| Aug 2023 | $4,363 | $141 | $183 |
| Sep 2023 | $4,221 | $141 | $189 |
| Oct 2023 | $3,675 | $119 | $182 |
| Nov 2023 | $2,906 | $97 | $182 |
| Dec 2023 | $2,819 | $91 | $199 |
| Jan 2024 | $2,399 | $77 | $186 |
| Feb 2024 | $2,383 | $82 | $169 |
| Mar 2024 | $2,538 | $82 | $173 |
| Apr 2024 | $2,696 | $90 | $176 |
| May 2024 | $3,634 | $117 | $202 |
| Jun 2024 | $4,132 | $138 | $218 |
| Jul 2024 | $4,417 | $143 | $217 |
| Aug 2024 | $4,308 | $139 | $212 |
| Sep 2024 | $3,955 | $132 | $207 |
| Oct 2024 | $3,489 | $113 | $198 |
| Nov 2024 | $2,829 | $94 | $193 |
| Dec 2024 | $2,975 | $96 | $198 |
| Jan 2025 | $2,426 | $78 | $180 |
| Feb 2025 | $2,562 | $92 | $180 |
| Mar 2025 | $2,836 | $92 | $184 |
| Apr 2025 | $3,014 | $101 | $188 |
| May 2025 | $3,717 | $120 | $214 |
| Jun 2025 | $4,667 | $156 | $239 |
| Jul 2025 | $4,759 | $154 | $233 |
| Aug 2025 | $4,228 | $136 | $222 |
| Sep 2025 | $4,048 | $135 | $221 |
| Oct 2025 | $3,985 | $129 | $227 |
| Nov 2025 | $3,187 | $106 | $220 |
| Dec 2025 | $3,469 | $112 | $236 |
| Jan 2026 | $2,634 | $85 | $217 |
| Feb 2026 | $2,241 | $80 | $211 |
Occupancy vs Supply
| Date | Occupancy | Active Listings |
|---|---|---|
| Mar 2021 | 72% | 3,225 |
| Jun 2021 | 74% | 3,616 |
| Sep 2021 | 76% | 3,722 |
| Dec 2021 | 67% | 3,791 |
| Mar 2022 | 69% | 3,872 |
| Jun 2022 | 75% | 4,905 |
| Sep 2022 | 73% | 4,861 |
| Dec 2022 | 60% | 4,752 |
| Mar 2023 | 64% | 4,662 |
| Jun 2023 | 73% | 4,614 |
| Sep 2023 | 67% | 4,489 |
| Dec 2023 | 46% | 3,845 |
| Mar 2024 | 49% | 3,615 |
| Jun 2024 | 62% | 2,753 |
| Sep 2024 | 62% | 4,090 |
| Dec 2024 | 48% | 4,259 |
| Mar 2025 | 49% | 4,400 |
| Jun 2025 | 63% | 4,571 |
| Sep 2025 | 60% | 4,267 |
| Dec 2025 | 48% | 3,822 |
Denver STR investment math requires careful attention to entry cost versus realistic revenue expectations. Typical home values sit at $524,186, with a median sale price of $544,666 as of the most recent housing data. The market is moderately competitive: homes are selling at 98.6% of list price on average, with a median of 56 days to pending, giving buyers reasonable negotiating room compared to the frenzied conditions of 2021 to 2022.
At the median revenue level, a Denver STR generates approximately $1,626 per month (the p50 figure from February 2026 data). Annualizing the 2025 average of $3,575 per month suggests a top-line gross of roughly $42,900 per year at the mean. On a $524,000 purchase with 20% down ($104,800), that represents a gross yield of approximately 8.2% on invested equity before operating costs.
The distribution of outcomes is wide. The bottom quartile (p25) earns $756 per month or less, while the top 10% (p90) earns $4,680 or more per month. Investors who acquire well-located properties with strong amenity profiles can outperform the average meaningfully, but underperforming listings are a real risk given current occupancy levels.
Key risk factors: Denver’s primary-residence-only STR requirement (detailed in the regulatory section) limits the investor pool to owner-occupants, which changes the acquisition thesis significantly compared to markets that allow non-hosted rentals. Anyone purchasing purely as an investment property cannot legally operate a Denver STR under current rules.
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| Date | Typical Home Value |
|---|---|
| Mar 2021 | $524,991 |
| Dec 2021 | $579,797 |
| Sep 2022 | $630,484 |
| Jun 2023 | $606,926 |
| Mar 2024 | $608,895 |
| Dec 2024 | $604,683 |
| Sep 2025 | $577,444 |
Booking Insights
Denver STR guests book with moderate lead times and tend toward shorter stays. The average booking lead time is 27.7 days, with a median of 18 days. This means half of all bookings are made within 18 days of arrival, which has direct implications for pricing strategy.
A short median lead time rewards dynamic pricing. Listings that hold firm on rates too far in advance risk leaving inventory unfilled, while those that discount early may underperform as last-minute demand materializes. Revenue management tools that adjust rates in real time based on remaining availability generally outperform static pricing in markets with this booking pattern.
Average length of stay is 8.1 nights, but the median is only 3 nights. The gap between mean and median suggests a segment of longer-stay guests (weekly or monthly bookings) pulls the average up, while most bookings are short weekend or midweek trips. This bimodal pattern is common in urban markets near major attractions.
For Denver specifically, a 3-night minimum stay requirement captures the dominant weekend booking segment without sacrificing flexibility. Hosts targeting longer-stay guests (business travelers, relocating professionals) may benefit from separate listing strategies or seasonal minimum-stay adjustments, particularly during slower winter months when filling longer gaps matters more.
Short-Term Rental Regulations
Denver enforces a primary-residence-only short-term rental policy. This is the most consequential regulatory fact for any investor evaluating this market.
To obtain a Denver STR license, the host must use the rental property as their primary residence, defined as living there for at least 275 days per calendar year (roughly nine months). This requirement effectively prohibits non-owner-occupied investment properties from operating as STRs. Buyers purchasing a second home or pure investment property in Denver cannot legally rent it short-term under current rules.
For qualifying owner-occupants, the licensing process requires an application submitted to the Denver Permitting and Licensing Center. Fees are $50 at application and $100 for the annual license, totaling $150 per year. Properties must comply with applicable zoning rules that govern where STRs may operate.
Hosts are required to collect and remit lodging taxes on all STR revenue. Denver levies a combined city and county lodging tax, and platforms like Airbnb collect and remit some taxes automatically, but hosts should verify their specific obligations directly with Denver’s Office of Finance to ensure full compliance.
Licenses must be renewed annually. Operating without a license exposes hosts to enforcement action including fines. Denver has increased code enforcement activity in recent years, so compliance is not optional.
Anyone considering a Denver STR investment should consult a local attorney or licensed real estate professional familiar with current enforcement practices before proceeding.
Market Comparison
Denver’s STR market sits in the mid-tier of major U.S. urban markets on both occupancy and rate benchmarks. At 54.3% average occupancy in 2025, Denver trails leisure-dominated markets like beach destinations or mountain resort towns that frequently sustain 65% to 75% annual occupancy, but it outperforms many secondary cities where year-round demand is thinner.
Denver’s $212 average ADR in 2025 is competitive for a large inland urban market. For context, comparable inland metros with strong tourism and business travel (cities like Nashville, Portland, and Denver’s regional peers) typically range from $175 to $225 ADR, placing Denver in the upper half of that peer group on rate.
The primary challenge Denver faces relative to comparable markets is the primary-residence-only regulatory constraint. Cities like Phoenix, Dallas, and Las Vegas allow non-hosted investor-owned STRs, which creates a larger and more liquid supply of investment-grade properties. Denver’s regulatory structure narrows the addressable investor pool to owner-occupants, which limits supply growth but also limits pure investment entry.
RevPAR (revenue per available room) for Denver in February 2026 was $80.00, with a median of $58.10. These figures reflect the seasonally soft winter period and will be substantially higher when measured across the summer peak.
Frequently Asked Questions About Denver, Colorado
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