Updated: Nov 15, 2021
Every year, people spend thousands of dollars to travel to Colorado for hiking and skiing in the mountains and the culture of Denver. Many stay in hotels, but an increasing number of travelers are choosing a vacation rental. And with those travelers comes opportunities for the real estate investor.
Oh sure, you've heard of Vail and Aspen. And everyone wants a vacation rental in Breckenridge. But those cities are expensive and chock full of short-term rentals. Whether buying a second home or purchasing a pure Airbnb investment property, I'm more interested in buying where others have not yet.
So what are the best unheard of towns for buying a vacation rental? Here are five cities or areas you might not have considered (but definitely should) for a vacation rental.
DIVIDE & FLORISSANT
Woodland Park, 20 minutes northwest of Colorado Springs, has been a growing hotspot for vacation rentals for years. And Divide & Florissant are just west of Woodland Park. Tucked into aspens and pine trees, these town offer the ultimate in mountain getaway cabins. Wraparound decks and hot tubs are in high demand from travelers, and you can capitalize on those desires.
Both towns get an "A" rating from AirDNA, the STR analytics firm that ranks markets. It's not hard to see why. Amazing mountain views and still relative proximity to the city life in Colorado Springs makes these great towns for a profitable vacation rental.
Not every successful vacation rental needs to be in the mountains. More tourists travel to Denver than any other area of the state. Unfortunately for STR investors, Denver's Airbnb laws are super strict. But Wheat Ridge is a five minute drive from two of Denver's hottest areas, and the city allows for Airbnb investment properties
There's a reason Wheat Ridge is the only city in the Denver metro area that has an "A" rating from AirDNA.
If you buy on the east side of Wheat Ridge, you're a stone's throw from Highlands Square shops and restaurants along 32nd, and you're equally as close to Tennyson Street in the Berkeley neighborhood with its bars, boutiques and restaurants. Both areas are home to some of Denver's hottest real estate.
If you buy on the west side of Wheat Ridge, you're right by Golden and it's quaint downtown and right by all the hiking and mountain biking available in the foothills.
Wheat Ridge is an easy inclusion on any list of great Colorado towns for vacation rentals.
Evergreen is to Denver as Divide is to Colorado Springs. A small mountain town dotted with aspens and pines and great views just outside a major metro area.
Evergreen is a great town to buy that second home or vacation rental. You can get the full mountain experience with an A-frame or other style of cabin and you've got a quaint little downtown nearby for food and bars. (Plus Denver is just 20 minutes away.)
No surprise then that AirDNA gives Evergreen an "A" rating as an Airbnb market.
You like skiing in Breckenridge? Then you should buy an STR in Fairplay. The tiny town sits at 9,500 feet of elevation, but more importantly, it sits just 30 minutes directly south on Highway 9 from one of the state's most popular ski resort at Breckenridge.
Homes prices are significantly lower in Fairplay, and it has an average Airbnb occupancy rate of 82%, largely due to ski bums looking for a slightly more affordable vacation rental. AirDNA gives Fairplay an "A" rating.
No, not the island. The cute little town in southern Colorado about three hours south of Denver. The area surrounding Trinidad is a little scrubbier than pure mountain vibe. (Not surprising as it's close to the New Mexico border.) But there are some great homes that draw tourists to the charming downtown and the wide open spaces surrounding this.
And like the other unassuming towns on this list, Trinidad has earned an "A" rating from AirDNA.
If you're looking for a second home or an Airbnb investment property, you can definitely buy in the more well-known ski towns. But you're not looking to drop $2 million or just want something different, there are better unheard of towns that will make you Airbnb money and give you the Colorado experience.