Telluride, CO

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Telluride short-term rental market based on reliable data.

Listings

799 / 1665

Reliable / Active

Cap Rate

3%

Middle-Earners Gross Yield

Revenue

$66,553

Middle-Earners Revenue

Occupancy

52%

Middle-Earners Occupancy

Home Value

$2,245,437

Median Home Sale Price

Top Earners

$166,458

Top-Earners Revenue

Telluride

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Telluride.

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C

Challenging to Investors

Telluride Regulations

STRs are legal but tightly constrained: residential zones allow only ≤29 nights/3 stays per year, creating a hard cap that limits yield; meanwhile, classic (non‑residential) STRs face high license fees ($1.3k–$5.7k+ by room count) and a combined ~17.22% tax burden, with criminal‑level penalties and frequent reporting/inspection requirements, making compliance costly and enforcement harsh.

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About Telluride

Telluride sits in a steep box canyon in the San Juan Mountains of southwestern Colorado, serving as the county seat of San Miguel County. The town has a year-round population of roughly 2,500 residents, though this figure swells dramatically during ski season, festival weeks, and the summer hiking months. Originally a high-elevation silver mining camp founded in the 1870s, Telluride has reinvented itself as one of North America's most celebrated alpine resorts, prized for its preserved Victorian-era downtown, walkable layout, and surrounding peaks that rise above 13,000 feet. It is best known for its ski mountain, the Telluride Film Festival, and the Telluride Bluegrass Festival, and it functions as a gateway to the broader San Juan range. The nearest major city is Denver, located about 330 miles to the northeast, a drive of roughly six and a half hours over mountain passes; the larger regional hub of Grand Junction is closer, around 140 miles to the north-northwest.

The Telluride Ski Resort anchors the town's winter identity, spanning more than 2,000 acres across the mountains that frame the valley. Skiers and snowboarders can ride lifts that drop directly into the historic core, while the free gondola linking downtown to Mountain Village, the slopeside resort community across the valley, makes it easy for visitors to stay car-free. In summer, the same lift system carries hikers and sightseers up to high-alpine wildflower meadows and panoramic viewpoints.

Just east of town, Bridal Veil Falls is a marquee natural attraction. Plunging 365 feet down a cliff face, it is the tallest free-falling waterfall in Colorado and can be reached by a steep four-mile hike or, for those with a high-clearance vehicle, by an unpaved road that climbs above the cascade. The falls sit at the head of the box canyon that defines Telluride's eastern edge, making them a focal point of the local landscape.

Roughly an hour south over Ophir or Red Mountain Pass, the small town of Ouray offers a complementary day trip. Nicknamed the "Switzerland of America" for its setting beneath sheer cliffs, Ouray is famous for its natural hot springs pool and serves as a base along the San Juan Skyway scenic byway. In the opposite direction, about two hours southwest near Cortez, Mesa Verde National Park preserves the cliff dwellings of the Ancestral Puebloan people, a UNESCO World Heritage site that pairs naturally with a Telluride stay for travelers interested in the cultural depth of the Four Corners region.

Telluride's combination of a compact, walkable historic core, an internationally recognized ski mountain, a packed summer festival calendar, and proximity to high-country passes, hot springs, and one of the West's most significant archaeological sites makes it a particularly strong short-term rental market. Demand is distributed across the calendar rather than concentrated in a single season, and the limited in-town lodging inventory relative to sustained visitor interest has historically supported strong nightly rates for well-located properties.

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