Mountain West6.4% avg cap rate

Telluride, CO

Colorado's most exclusive ski and festival mountain market

Telluride is Colorado's most prestigious ski town - a box canyon setting, film festival, bluegrass festival, and a ski resort with no lift lines commands the highest STR ADR of any Colorado market. Entry prices reflect the exclusivity, but so do returns. Properties in Mountain Village carry premium pricing; the town itself has strict STR regulations.

6.4%
Avg Cap Rate
Net operating income / price
60%
Avg Occupancy
Annual average
$895
Avg Nightly Rate
All property types
$1.9M
Avg List Price
STR-viable properties

Estimated Annual Performance

Gross rental revenue
60% occ × $895/night
$196,005
Est. operating expenses
Mgmt, cleaning, supplies, insurance (~40%)
- $78,402
Est. net operating income
Before mortgage & depreciation
$117,603
At $1.9M avg price
Implied cap rate
6.4%

* Estimates based on market averages. Individual property performance varies. Always run a full underwriting analysis.

Why Investors Choose Telluride

Highest ADR of any Colorado STR market
Telluride Film Festival, Bluegrass Fest drive sold-out non-ski weekends
Box canyon geography hard-limits new supply
Mountain Village vs. Town - different regulation and price profile
Peak season: Dec - Mar (ski), June - Sept (festivals)
Top property types: Condo, Ski-in/Ski-out, Luxury Home, Mountain Villa
Primary zip: 81435

Telluride STR investing, answered

Is Telluride, CO a good short-term rental market?

Telluride is a Mountain West STR market averaging a 6.4% cap rate, 60% annual occupancy, and $895/night across STR-viable listings. Telluride is Colorado's most prestigious ski town - a box canyon setting, film festival, bluegrass festival, and a ski resort with no lift lines commands the highest STR ADR of any Colorado market. Entry prices reflect the exclusivity, but so do returns. Properties in Mountain Village carry premium pricing; the town itself has strict STR regulations.

What is the average Airbnb occupancy rate in Telluride?

STR-viable properties in Telluride average about 60% occupancy across the year. Peak season is Dec - Mar (ski), June - Sept (festivals). Occupancy here reflects availability-adjusted booking performance, not raw calendar occupancy, so it represents what a full-time operated rental can realistically achieve.

How much do short-term rentals earn in Telluride?

At $895/night and 60% occupancy, a typical Telluride STR grosses roughly $196,005 per year before expenses, leaving an estimated $117,603 in net operating income against a $1.9M average price, an implied 6.4% cap rate. Individual results depend on property, amenities, and management.

What types of properties work best for STR in Telluride?

The strongest-performing STR property types in Telluride are Condo, Ski-in/Ski-out, Luxury Home, Mountain Villa. Highest ADR of any Colorado STR market. Matching the local guest profile and the amenities that drive bookings in this market matters more than raw square footage.

What is the median STR-viable home price in Telluride?

STR-viable listings in Telluride average around $1.9M. Primary STR ZIP codes include 81435. Combined with the market's 6.4% average cap rate, that price level sets the return baseline you'd underwrite against.

Market averages, not guarantees. Cap rates, occupancy, and nightly rates are market-wide averages based on active STR listings and historical data. Individual property performance depends on location, amenities, management, and listing quality. Always run a full underwriting analysis before purchasing.

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