Fairplay, Colorado

Short-term rentals inside the Town of Fairplay are permitted but tightly capped under Ordinance No. 4, Series 2022 (adopted March 21, 2022). Operators need both an annual Short-Term Rental License ($250 application fee) and a Town Business License ($100/year). Licenses are non-transferable and issued first-come, first-served.

The most significant constraint is a hard cap: total STR licenses are limited to 6.5% of housing units existing at adoption, approximately 20 licenses town-wide. As of spring 2026, roughly 10 were issued with about 10 remaining, meaning the cap is approximately half-full. Prospective investors should verify current availability directly with the Town of Fairplay before purchasing.

Operational requirements are strict: 24/7 local responsible-agent contact, compliance with health, fire, and building codes (smoke and CO detectors required), a posted parking and trash plan, a property diagram, and guest-facing safety information. Maximum occupancy is fixed at licensing based on the property’s Water and Sewer EQR calculation. Events such as parties, weddings, and concerts are explicitly prohibited. There is no owner-occupancy or primary-residence requirement and no stated annual night cap.

On the tax side, hosts must hold a Colorado sales tax license and file a Fairplay lodging tax return. The lodging occupation tax is a flat per-room charge rather than a percentage rate. Combined sales tax on lodging is approximately 8.9% (state, county, and town components). Properties on well and septic fall outside town jurisdiction and are regulated separately by Park County, which was revising its own STR ordinance through 2025-2026. Enforcement is rated strict.