Fort Collins, Colorado Short Term Rental Regulations Guide for Airbnb hosts

Overview: STR Status in Fort Collins

Short-term rentals ARE ALLOWED in Fort Collins, Colorado, but with significant regulations and restrictions. The City of Fort Collins has implemented a comprehensive licensing system that permits both primary (owner-occupied) and non-primary (not owner-occupied) short-term rentals, subject to specific zoning requirements, safety standards, and ongoing compliance obligations.

What do Airbnb hosts actually earn in Fort Collins?

Fort Collins hosts earn a median $37,793/year with $184 ADR and 70% occupancy.

Top performers pull in $54,354+ per year.

See the full Fort Collins market breakdown

How to Start a Short-Term Rental Business in Fort Collins

Step 1: Determine Property Eligibility

Before proceeding with any applications, verify that your property qualifies for STR use:

Use the city's STR zoning map to confirm whether your property location allows short-term rentals
Property types that qualify:
- Single-family dwellings (including townhomes/single-family-attached homes)
- R-1 hotel/motel occupancies (note: existing R-2 condo/apartment buildings must undergo costly change-of-occupancy process from R-2 to R-1)
Property types that do NOT qualify:
- Multi-family R-2 buildings (apartment or condo buildings with 3+ dwelling units on a single property)

Step 2: Apply for Required Licenses

Complete the licensing process through the city's official channels:

Submit STR License Application
Obtain Sales and Lodging Tax License
Display license number prominently in all listings

Step 3: Ensure Compliance with Operational Requirements

Meet parking requirements based on bedroom count
Maintain designated local contact for guests and neighbors
Follow safety and operational standards
Implement proper tax collection and reporting procedures

Required Documents, Permits, Licenses, and Guidelines

Primary Licenses Required

Short-Term Rental License
- Initial fee: $150
- Annual renewal: $100 (due June 30 regardless of application date)
- Must be renewed yearly with no proration
Sales and Lodging Tax License
- Required for tax collection and remittance
- Third-party platforms (Airbnb, VRBO) collect and remit taxes under their accounts
- Self-managed rentals must collect and remit directly

Key Operational Requirements

License Display Requirement
- STR license number must be displayed in all online listings
- Format: XXXXXXXX-STR (example: 00123456STR)
- Required on platforms like Airbnb under "Location" section
Local Contact Requirement
- Must designate and register a local point of contact
- Available for guests, neighbors, and city officials
- Contact information must be readily accessible
Parking Requirements
- 1-2 bedrooms: 1 off-street parking space
- 3-4 bedrooms: 2 off-street parking spaces
- 5-6 bedrooms: 3 off-street parking spaces
- Must be on private property (driveway/garage)
- Cannot include tandem parking arrangements

Safety and Operational Standards

Maintain compliance with building safety codes
Follow fire/life/safety requirements for R-1 occupancies
Implement guest screening and rental agreement protocols
Establish quiet hours and occupancy limits
Maintain detailed records and inspection logs

Specific Regulations for STRs in Fort Collins

Zoning and Location Restrictions

Primary STRs (Owner-Occupied)
- Permitted in zones allowing hotels, motels, and bed & breakfasts
- Indicated by green areas on the STR zoning map
- Owner must reside at property for 9+ months annually
Non-Primary STRs (Not Owner-Occupied)
- Permitted in zones allowing lodging establishments
- Indicated by yellow areas on the STR zoning map
- Subject to more restrictive zoning requirements
Prohibited Areas
- Multi-family R-2 buildings (3+ units)
- Zones with no color coding on the STR zoning map

Tax Obligations

City Lodging Tax
- Rate: 3% on amounts paid by guests
- Applied to occupancies under 30 consecutive days
- Remitted monthly to the city
State Tax Requirements
- Colorado state lodging tax obligations apply
- Registration with Colorado Department of Revenue required
- Must be collected and remitted according to state guidelines
Sales Tax
- Standard city sales tax rates apply to rental income
- Filed annually or per city-specified frequency
- $25 assessment fee for late filings

Recent Regulatory Updates

As of May 2025: The Planning and Zoning Commission voted to recommend removing non-primary short-term rentals from the Old Town North neighborhood's zone district. This recommendation will go before City Council for consideration on June 17, 2025, potentially affecting investors in that specific area.

Contact Information for Local Authorities

STR Licensing Information

Contact: Margaret Moxley
Phone: 970.221.6780
Email: Available through city contact system

Zoning Information

Contact: Sara Hernandez
Phone: 970.221.6248
Email: Available through city contact system

Primary Government Resources

City of Fort Collins Short-Term Rentals
Website: www.fcgov.com/shorttermrentals
Phone: 970.221.6240 (general city contact)

Planning, Development & Transportation Services
Website: www.fcgov.com/pdt
Neighborhood Services
Website: www.fcgov.com/neighborhoodservices

County-Level Contacts (for Unincorporated Areas)

Larimer County Planning Department
Website: www.larimer.gov/planning
Phone: 970.498.7681
Address: 200 W. Oak Street, Fort Collins, CO 80521

Links to Source Pages

City of Fort Collins STR Official Page: https://www.fcgov.com/shorttermrentals/
STR Zoning Map: https://gisweb.fcgov.com/HTML5Viewer/Index.html?Viewer=FCMaps&layerTheme=Short%20Term%20Rental%20Zoning
Property Eligibility Lookup: https://www.fcgov.com/shorttermrentals/str-address-lookup.php
STR License Application: https://www.fcgov.com/shorttermrentals/apply
Airbnb Fort Collins Guidelines: https://www.airbnb.com/help/article/2374
Larimer County STR Regulations: https://www.larimer.gov/planning/short-term-rentals-regulation-updates
Colorado Department of Revenue: https://www.colorado.gov/pacific/tax
Fort Collins Sales Tax Information: https://www.fcgov.com/salestax/
Recent News - Proposed Changes: https://www.coloradoan.com/story/money/business/2025/05/27/change-may-come-for-short-term-rentals-in-fort-collins-neighborhood/83726430007/

Important Investment Considerations

Market Dynamics: Fort Collins presents a mature STR market with established regulations that provide clarity for investors, though ongoing regulatory evolution requires vigilance.

Compliance Costs: Budget for license fees, potential safety upgrades, and ongoing operational compliance costs that can significantly impact profitability.

Zoning Competition: Properties in designated STR zones may command premium prices, while properties in restricted zones face limitations or prohibitions.

Operational Requirements: Professional management and comprehensive compliance systems are essential for success in Fort Collins' regulated STR environment.

Regulatory Monitoring: Stay informed about proposed changes, as evidenced by the 2025 recommendations affecting specific neighborhoods.

Fort Collins offers a viable STR investment market with clear regulations, but success requires thorough due diligence, professional operations, and ongoing compliance with evolving municipal requirements.

Next step

Found a property in Fort Collins?

Paste any address and get estimated revenue, cash-on-cash return, and comparable STR performance in under 5 minutes. 3 free analyses per day.

Ask the AI Advisor about Fort Collins

Fort Collins is a mid-sized city in northern Colorado, situated in Larimer County at the foothills of the Front Range where the high plains meet the Rocky Mountains. With a population of approximately 170,000, it is the fourth-largest city in the state and serves as a regional hub for northern Colorado, anchored by Colorado State University. The city is widely known for its lively craft beer scene, its well-preserved historic downtown, and its easy access to outdoor recreation in the surrounding mountains and reservoirs. Fort Collins sits about 65 miles north of Denver, roughly an hour's drive up Interstate 25, making it both a destination in its own right and a natural base for travelers exploring northern Colorado.

One of the area's most popular outdoor destinations is Horsetooth Reservoir, a large body of water tucked into the foothills just west of the city. Created by Horsetooth Dam, the reservoir offers boating, paddleboarding, swimming, and fishing, and is surrounded by miles of trails used for hiking and mountain biking. The drive from central Fort Collins to the main reservoir access points takes roughly 15 to 20 minutes, making it a favorite for both locals and visitors.

Just beyond Horsetooth Reservoir lies Lory State Park, a quieter alternative to the busier reservoir with rolling hills, pine forests, and several trailheads leading into the foothills. The park is a popular spot for hiking, horseback riding, and camping, and it sits only about 25 minutes from downtown Fort Collins.

To the northwest, the Cache la Poudre River flows out of the mountains and through the northern edge of the city. Designated as part of the National Wild and Scenic Rivers System, it is the first river in Colorado to receive that distinction and is known for its fly fishing, tubing, and whitewater rafting sections. Several put-in points are within a 20- to 40-minute drive of Fort Collins, depending on how far upriver travelers wish to go.

The crown jewel of the region, however, is Rocky Mountain National Park, which lies about an hour and a half west of Fort Collins via the mountain town of Estes Park. The park's Trail Ridge Road, alpine lakes, and abundant wildlife draw visitors from around the world, and many travelers choose Fort Collins as an affordable, amenity-rich alternative to staying in Estes Park itself.

Fort Collins makes a compelling base for a short-term rental thanks to this combination of small-city comfort and big-outdoor access. Guests can spend mornings hiking foothill trails, afternoons wandering Old Town's restored brick storefronts and breweries, and evenings sampling the city's food scene, all while using the city as a launching point for day trips into Rocky Mountain National Park and the surrounding wilderness.