Palmer Lake, Colorado Short-Term Rental Market
The Colorado Springs area STR market near Palmer Lake averaged $237 ADR at 77.9% occupancy in June 2026.
Quick Answer: Palmer Lake, Colorado is an active short-term rental market. average occupancy in the Colorado Springs market area is 78%. average monthly revenue in the Colorado Springs market area is $5,011. average daily rate in the Colorado Springs market area is $237.
Market data reflects the Colorado Springs regional market, which includes Palmer Lake. Regulations, taxes, and permit details below are specific to Palmer Lake.
Market Overview
Palmer Lake is a small foothills town of about 2,587 people on the Palmer Divide between Denver and Colorado Springs, drawing mostly regional day-trippers and outdoor-recreation visitors from the Front Range. Its 36-acre Palmer Lake Recreation Area, the Palmer Lake Reservoir trailhead, and access to the 15-mile New Santa Fe Regional Trail anchor spring-through-fall visitation, with a quaint downtown of galleries and shops supporting weekend visitors. StaySTRA tracks Palmer Lake’s short-term rental performance data at a shared regional level with nearby Green Mountain Falls, so the figures below describe that regional Colorado Springs-area mountain-town market rather than Palmer Lake alone. That regional market averaged a $237.21 ADR and 77.9% occupancy in June 2026, the most recent month tracked, producing $184.70 RevPAR and $5,011 in average monthly revenue. Year over year, occupancy is up 0.5%, ADR is up 2.4%, and revenue is up 1.4%. The market has grown substantially since 2017, when it averaged 56.7% occupancy and a $121 ADR; by 2025 those figures had climbed to 63.5% occupancy and a $179 ADR. Palmer Lake’s own signature events, the November Star lighting, the December Yule Log Festival, and the August Chautauqua reenactment, concentrate additional demand in the holiday and late-summer periods.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 48% |
| Feb | 57% |
| Mar | 66% |
| Apr | 61% |
| May | 70% |
| Jun | 80% |
| Jul | 82% |
| Aug | 73% |
| Sep | 65% |
| Oct | 62% |
| Nov | 56% |
| Dec | 59% |
Month-by-month nightly rates and revenue figures for Palmer Lake are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Palmer Lake — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Palmer Lake requires a Short-Term Rental permit or license for any dwelling rented for lodging for 1 to 29 consecutive days; rentals of 30 or more days are treated as long-term and fall outside STR rules. The program is defined by Ordinance 12 of 2021 as amended by Ordinance 4 of 2022 and Ordinance 12 of 2023, codified at Title 5, Chapter 5.10 of the Municipal Code. The application fee is $75, which includes a nonrefundable $25 processing fee charged regardless of approval, denial, or withdrawal, and the town asks for a minimum of about 10 days to process. The annual license runs May 1 through April 30 and must be renewed within 30 days prior to expiration, by April 30, with a renewal fee. Applicants must designate up to two local emergency contacts with property access and authority to act in an emergency. There is no published owner-occupancy or primary-residence requirement, and there is no town-wide cap on the total number of permits or on nights per year; however, the town issues no more than one license per parcel, with additional licenses on the same parcel available only through the conditional use permit process. On taxes, the town does not collect sales tax directly: Colorado administers a combined 7.13% sales tax (2.90% state, 1.23% El Paso County, 3.00% town) on STR stays, and the town also uses a separate Lodging Fee Remittance Form; hosts who list through Airbnb or Vrbo typically have taxes collected and remitted by the platform, while independent hosts must register and remit themselves. Enforcement is classified as moderate.
Market Comparison
Nationally, short-term rentals typically run around 55% occupancy and a $220 ADR. This shared Palmer Lake/Green Mountain Falls regional market’s June 2026 figures, 77.9% occupancy and a $237.21 ADR, run well above both national benchmarks, reflecting strong Front Range weekend-getaway demand. Property manager market share and per-listing-type performance data are not yet published for this area, so a direct comparison to competing operators or unit types is not possible here. Palmer Lake’s regulatory posture, one license per parcel but no town-wide numeric cap, is notably more open than neighboring Green Mountain Falls, which caps total licenses at 60 town-wide, a meaningful difference for investors comparing the two towns.
Frequently Asked Questions About Palmer Lake, Colorado
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