Colorado City, Arizona Short-Term Rental Market
Colorado City, AZ short-term rentals averaged $185/night at 52.8% occupancy in May 2026.
Quick Answer: Colorado City, Arizona is an active short-term rental market. average occupancy is 54%. average monthly revenue is $2,978. average daily rate is $197.
Market data reflects the Arizona Area regional market, which includes Colorado City. Regulations, taxes, and permit details below are specific to Colorado City.
Market Overview
Colorado City, AZ sits in the Short Creek Valley along the Arizona-Utah border, with its Utah counterpart Hildale adjacent. The town has a resident population of approximately 2,702 and is actively developing an outdoor tourism economy, positioning itself as a less-crowded gateway to Zion National Park, the Grand Canyon, Lake Powell, Pipe Spring National Monument, and Vermilion Cliffs National Monument. Annual visitor count is not published for this town specifically.
In May 2026, the STR market recorded an average daily rate of $185 and an occupancy rate of 52.8%, producing a RevPAR of $98. Average monthly revenue per active listing was approximately $2,679. Year-over-year compared to May 2025, occupancy declined 1.9 percentage points and revenue fell 2.1%, while ADR gained 2.1%.
Looking at the multi-year trend, ADR averaged $145 in 2017 and reached $173 in both 2024 and 2025. Annual average occupancy peaked at 64.0% in 2021 and has since moderated, averaging 54.1% in 2025. Revenue per listing averaged $2,632 per month in 2025, down slightly from the 2024 average of $2,724.
Bedroom mix, channel mix, and listing-type breakdowns are not available in the current snapshot for this area.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 50% | $137 | $1,991 |
| Feb | 58% | $136 | $1,988 |
| Mar | 62% | $150 | $2,575 |
| Apr | 54% | $152 | $2,271 |
| May | 55% | $166 | $2,465 |
| Jun | 59% | $183 | $2,911 |
| Jul | 62% | $180 | $3,093 |
| Aug | 56% | $166 | $2,608 |
| Sep | 53% | $162 | $2,335 |
| Oct | 56% | $158 | $2,460 |
| Nov | 52% | $148 | $2,079 |
| Dec | 54% | $157 | $2,365 |
What Kind of STR Should I Buy in Colorado City?
Revenue and pricing by property type, tier, and bedroom count.
ADR by Property Tier
| Entire Home | $203 |
| Luxury | $334 |
| Professionally Managed | $242 |
Revenue by Dwelling Type
| Apartment | $1,824 |
| Entire Place | $3,090 |
| House | $3,320 |
Investment Analysis
Colorado City is a small, emerging outdoor-tourism market with modest but consistent STR revenue. In May 2026, average monthly revenue per active listing was approximately $2,679. The 2025 calendar-year monthly average was $2,632, implying an annualized gross revenue of approximately $31,584 per active listing before platform fees, taxes, and operating expenses.
ADR at $185 in May 2026 is below the national STR median of approximately $220, which reflects the market’s smaller scale and earlier stage of development. RevPAR of $98 is relatively modest. However, the town’s location between several major national parks and monuments creates a demand case for travelers who prefer lower-cost or more distinctive lodging options such as covered-wagon Airbnbs and glamping setups, which have been reported as locally popular.
No housing price data is available in the current snapshot, limiting a direct entry-cost or gross yield calculation. Investors should source current comparable sales independently. The market has shown ADR growth from $145 in 2017 to $185 in May 2026, suggesting gradual appreciation in pricing power. Revenue per listing grew from approximately $1,787 per month in 2017 to $2,632 in 2025, a 47% increase over eight years.
Tier-level ADR data (luxury, professionally managed) is not available for this market.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Booking lead time and length-of-stay data are not available in the current snapshot for this area. Colorado City’s summer peak aligned with national park visitation patterns suggests that July and August bookings may follow the broader national parks travel cycle, where popular parks-area lodging often books out weeks to months in advance for summer dates. Operators should monitor their own booking windows to calibrate advance pricing.
Short-Term Rental Regulations
Colorado City, AZ has no STR-specific local ordinance. Short-term rentals are permitted and operate under Arizona state preemption law (ARS 9-500.39), which prohibits municipalities from banning vacation rentals or restricting them based on use, classification, or occupancy. Under this framework, a local permit is not required in Colorado City. Operators must obtain an Arizona Transaction Privilege Tax (TPT) license and remit lodging taxes.
The Colorado City city hotel and transient lodging tax rate is 7.0%, effective since March 2016, in addition to Arizona state TPT and applicable Mohave County excise taxes. Owner-occupancy and primary-residence requirements do not apply. There is no published cap on maximum nights per year.
Note: New accessory dwelling units with a certificate of occupancy dated September 14, 2024 or later may be subject to a narrow owner-residency rule under the 2024 Arizona STR amendment. This applies statewide, not only in Colorado City.
Enforcement is categorized as minimal, consistent with the town’s small size and its active promotion of tourism-oriented lodging. State-level civil penalties for STR violations run from $500 to $3,500 per violation.
Market Comparison
The Colorado City market’s May 2026 ADR of $185 sits below the national STR median of approximately $220, reflecting its status as an emerging rather than established leisure destination. Occupancy at 52.8% is slightly below the approximate US STR median of 55%, though the market has historically exceeded that threshold (64.0% in 2021, 58.6% in 2022).
RevPAR of $98 is modest relative to established Southwest destination markets. The adjacent Sedona/Verde Valley corridor, for example, posts ADR above $300 with higher RevPAR, illustrating the gap between anchor destination pricing and gateway market pricing.
Top property manager data is not available in the current snapshot. Market operator concentration and professional management share cannot be assessed from current data.
Frequently Asked Questions About Colorado City, Arizona
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