Performance indicators for the Palmer Lake short-term rental market based on reliable data.
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The highest-performing listings in Palmer Lake.
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Challenging to Investors
STRs are explicitly allowed, but non‑owner‑occupied licenses are capped at 5% of residential parcels and only one license per parcel, limiting investor scalability. Licensing requires a $500 fee (renewal $300), an annual safety inspection, a local 24/7 agent, and monthly tax remittance; the process is manageable but the cap and compliance demands make investment challenging.
Local STR Agent
STR specialist · Palmer Lake, CO
Palmer Lake is a small statutory town in El Paso County, Colorado, nestled in the Front Range of the Rocky Mountains at roughly 7,200 feet of elevation. With a population of approximately 2,600, the town has the feel of a quiet mountain community, with a walkable core, tree-lined streets, and views of the surrounding Rampart Range and Ben Lomond Mountain. It is best known as a gateway to the high-elevation outdoor country west of I-25, and as a small, scenic stop along the historical Santa Fe Trail. Palmer Lake sits about 20 miles north of Colorado Springs and roughly 50 miles south of Denver, making it an easy drive from either Front Range city.
The lake itself is the town's centerpiece. The small reservoir, ringed by a walking path and adjacent park, is popular for fishing, paddleboarding, and quiet lakeside strolls. On the north-facing slope above town, a large star made of light bulbs is illuminated during certain holidays, a community tradition that draws visitors in the winter months. From the town core, several trailheads in the Pike National Forest are within roughly 10 to 15 minutes, leading into the foothills and the Rampart Range, including routes up Mount Herman and along the Ben Lomond ridge.
Just west and north of Palmer Lake, the Pike National Forest offers miles of hiking, mountain biking, and horseback riding. The area connects to broader trail networks threading through the front-range foothills. Greenland Open Space, a large El Paso County-managed tract to the south of town, adds more room for hiking, trail running, and wildlife watching within a short drive. Together, these public lands give visitors a year-round base for outdoor recreation without the crowds of the more developed mountain resorts.
A short drive south brings visitors to the marquee attractions of the Colorado Springs area. Garden of the Gods, the dramatic red-rock park managed by the city of Colorado Springs, is roughly 25 to 30 minutes away. Pikes Peak, the iconic 14,115-foot summit that inspired the song "America the Beautiful," is accessible from the west side via the Pikes Peak Highway within about 40 minutes of town. The Santa Fe Trail, the historic nineteenth-century trade route that once linked Missouri to New Mexico, also passed through the Palmer Lake area, and interpretive markers and a regional byway trace the route nearby.
Palmer Lake offers short-term rental owners a rare combination of small-town character and easy access to some of Colorado's most recognizable outdoor destinations. Visitors who want a quieter, more affordable alternative to staying in Colorado Springs or Woodland Park can settle into the mountain air here, with lakeside paths, trailheads, and Front Range panoramas out the front door, and the red rocks of Garden of the Gods, the summit of Pikes Peak, and the historic Santa Fe Trail all within a short drive. Its position between Denver and Colorado Springs, paired with year-round outdoor appeal, makes it a flexible base for travelers exploring the southern Front Range.