In-depth analysis

Should you buy an STR in Colorado Springs in 2026?

Yes, in the right zone. Colorado Springs operates a two-tier STR permit system: owner-occupied permits are broadly available; non-owner-occupied permits are limited to specific zoning districts with density caps. ADR is $184, occupancy 61%, RevPAR $112, market score 74/100. The Air Force Academy, Olympic Training Center, Garden of the Gods, and Pikes Peak generate durable year-round demand at a lower basis than most Front Range alternatives.

Regulation: where the city stands

City of Colorado Springs STR ordinance:

Owner-occupied STR — permitted in residential zones citywide with permit.
Non-owner-occupied STR — permitted only in specific zones (commercial, mixed-use, and a few residential overlays); subject to density caps.
Lodging tax stack (City 2% LART + state + El Paso County) runs around 9%.
Annual permit renewal with life-safety inspection.

Unincorporated El Paso County (Manitou Springs is a separate municipality with its own rules) operates a different regime — verify jurisdiction. Colorado fire-insurance hardening hits west-side and foothill parcels (Black Forest, Westside near Garden of the Gods).

The market by the numbers

Metric	Colorado Springs	Comparison
Avg ADR	$184	Strong mid-Colorado
Occupancy	61%	Steady year-round
RevPAR	$112	Solid for basis
Market score	74/100	High

Demand: Air Force Academy parents and graduation, Olympic Training Center, Garden of the Gods / Pikes Peak tourism, summer hiking, military relocation.

Submarkets that matter

Old Colorado City / Westside — walkable, tourism core, premium ADR.
Broadmoor area — near the Broadmoor resort, upscale SFR, golf travel.
Downtown — condo-heavy, walkable, event-driven.
Northgate / Black Forest — near Air Force Academy, family-traveler SFR.
Manitou Springs — separate municipality, separate STR rules, charm-town premium.

The 3 mistakes buyers make here

Buying non-owner-occupied in a residential zone without verifying eligibility. Many residential blocks are not non-owner-occupied-eligible.
Confusing Colorado Springs with Manitou Springs. Manitou is its own city with its own ordinance.
Underwriting Air Force Academy graduation as a steady event. Two big weekends drive a meaningful chunk of revenue — but they are weekends, not the year.

What to do next

Pull the City of Colorado Springs STR program and verify zone eligibility.
Verify Manitou Springs or unincorporated El Paso County rules where applicable.
Run Market Score and Comp Analyzer.
Quote fire insurance on any west-side or Black Forest parcel.

Not investment advice. Verify all regulatory and tax information with local authorities and licensed professionals before committing capital.

Last reviewed 2026-05-07 · Estimated — community-sourced · Population 478,961