Castle Rock, Colorado Short-Term Rental Market
Castle Rock STRs averaged $156/night at 66.8% occupancy in April 2026 across 13,174 active listings.
Quick Answer: Castle Rock, Colorado is an active short-term rental market. average occupancy is 78%. average monthly revenue is $4,298. average daily rate is $202. the top operator is Evolve with 279 listings. market score is 55/100 (grade D).
Market data reflects the Denver regional market, which includes Castle Rock. Regulations, taxes, and permit details below are specific to Castle Rock.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Castle Rock, Colorado (population 83,213) sits at the midpoint of the Denver-to-Colorado Springs corridor on I-25, operating a large STR market of 13,174 active listings as of the latest snapshot. Entire-place rentals dominate at 10,939 units (83.0%), with private rooms at 2,148 and shared rooms at 87. By bedroom count, 1-bedroom properties lead at 5,670 listings, followed by 2-bedroom (3,276) and 3-bedroom (2,034). The channel mix skews heavily Airbnb: 7,762 Airbnb-only listings, 4,843 dual-channel properties, and 569 VRBO-only.
In April 2026, Castle Rock STRs posted an average daily rate of $156, an occupancy rate of 66.8%, and a RevPAR of $104. Year-over-year, occupancy is down 1.0 percentage points, ADR is down 2.2%, and revenue is down 0.4%. The 2025 annual average occupancy of 67.9% and ADR of $167 represent the market’s stable mid-tier baseline. Castle Rock’s total market score is 54.9 out of 100, with a strong rental demand score (85.9) and manageable seasonality risk (78.1), partially offset by below-average revenue growth (50.0) and moderate regulation complexity (62.9).
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 58% | $126 | $2,084 |
| Feb | 65% | $128 | $2,134 |
| Mar | 68% | $133 | $2,481 |
| Apr | 67% | $137 | $2,460 |
| May | 71% | $149 | $2,844 |
| Jun | 81% | $171 | $3,607 |
| Jul | 80% | $165 | $3,585 |
| Aug | 76% | $160 | $3,337 |
| Sep | 73% | $155 | $3,010 |
| Oct | 69% | $150 | $2,853 |
| Nov | 61% | $135 | $2,224 |
| Dec | 62% | $137 | $2,250 |
Top Short-Term Rental Operators in Castle Rock
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 279 | 10,450 | ★ 4.65 |
| 2 | Effortless Rental Group | 141 | 10,652 | ★ 4.74 |
| 3 | Atomic Vacation Rentals | 140 | 9,862 | ★ 4.84 |
| 4 | VacayPlay | 83 | 5,503 | ★ 4.42 |
| 5 | Homes with Hospitality LLC | 81 | 850 | ★ 4.94 |
What Kind of STR Should I Buy in Castle Rock?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 5,670 |
| 2 bed | 3,276 |
| 3 bed | 2,034 |
| 4 bed | 1,294 |
| 5 bed | 874 |
ADR by Property Tier
| Entire Home | $224 |
| Luxury | $375 |
| Professionally Managed | $249 |
Revenue by Dwelling Type
| Apartment | $3,365 |
| Entire Place | $4,810 |
| House | $4,738 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 58.9% |
| vrbo | 4.3% |
| both | 36.8% |
Investment Analysis
Castle Rock’s STR investment profile differs from the Denver core metro: typical home values are $676,277 (April 2026 Zillow estimate), meaningfully above Aurora’s $464,882, while STR revenues are nearly identical. At an average monthly revenue of $2,804, annualized gross revenue comes to approximately $33,648, implying a gross yield of roughly 5.0% on the typical home value before expenses and management fees.
The resale market shows distinct dynamics compared to the broader metro. Homes sold at 88.4% of list price with a median 17 days to pending, indicating some buyer negotiating power at the current inventory level of 563 units. This contrasts with the competitive Aurora submarket where homes sell at 103% of list.
Property type and tier differentials are similar to the broader metro. Entire-place units average $3,097/month versus $2,492 for apartments and $2,948 for houses. The professionally managed tier averages $186/night versus the all-listings $156, an 19% ADR premium. Luxury-tier properties average $289/night. The investability score of 53.8 out of 100 reflects the yield compression from higher home prices relative to STR revenue levels.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Castle Rock STR guests book an average of 39.8 days in advance and stay 5.38 nights on average. The nearly 40-day lead time is consistent with the Denver metro pattern, giving operators a 5-6 week pricing window for most bookings. Rates set in this window ahead of summer weekends and regional events will capture the bulk of peak-season demand.
The 5.38-night average length of stay reduces turnover frequency compared to weekend-only markets. Fewer changeovers per month lowers cleaning and operational costs, which matters particularly for investors managing multiple units. Combined with the light regulatory environment (no night cap), longer stays also support higher annual utilization without running into permit restrictions.
Short-Term Rental Regulations
Castle Rock is one of the most permissive STR markets in Colorado. The town does not regulate short-term rentals through zoning or STR-specific ordinances. No owner-occupancy requirement exists, no annual night cap applies, and no primary-residence rule is in place.
STR operation requires only a standard Town Business License, which costs $10 at application and renews annually by December 31. Operators must collect and remit: a 6% Town lodging tax (effective January 1, 2022), a 4.2% Town sales tax (effective January 1, 2025), Colorado state sales tax of 2.9%, and Douglas County sales tax of 1%. Combined local lodging and sales taxes total approximately 14.1% on top of state taxes.
HOAs within residential neighborhoods may independently prohibit or restrict STRs regardless of town policy. Investors purchasing in unincorporated Douglas County areas near Castle Rock (but outside town limits) must comply with the separate Douglas County STR ordinance, which requires an annual permit ($500 first year, $270 plus $130 renewal).
The town council has discussed but declined to adopt STR-specific regulations, citing low complaint volume. Enforcement is minimal. Colorado HB23-1287 (effective August 7, 2023) grants counties authority over STR licensing in unincorporated areas but does not apply within incorporated Castle Rock.
Market Comparison
Castle Rock’s 66.8% occupancy in April 2026 is above the U.S. STR median of approximately 55%, and its $156 ADR runs below the national median of roughly $220, consistent with a suburban Denver corridor market. RevPAR of $104 is competitive for the price point.
Rental demand scores 85.9 out of 100, reflecting proximity to both the Denver and Colorado Springs metro areas, the Outlets at Castle Rock (4.5 million annual visits), and Philip S. Miller Park (over 1 million visitors annually).
The professional management landscape mirrors the Aurora market. Evolve leads with 279 listings and a 4.65 average rating across 10,450 reviews. Effortless Rental Group manages 141 listings (4.74 rating, 10,652 reviews) and Atomic Vacation Rentals holds 140 listings (4.84 rating, 9,862 reviews). Together the top three manage 560 listings, approximately 4.2% of the 13,174-listing market.
Frequently Asked Questions About Castle Rock, Colorado
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