Overview: Are Short-Term Rentals Allowed in Gypsum, CO?

Yes, short-term rentals are allowed in Gypsum, Colorado. The Town of Gypsum maintains its own municipal regulations for short-term rentals, separate from Eagle County regulations. As of May 2025, Eagle County has explicitly decided not to implement county-level short-term rental regulations, choosing instead to leave such regulations to individual municipalities and HOAs/metro districts. This means that Gypsum's existing STR policies remain in effect, and investors must comply with town-specific requirements rather than county-wide ordinances.

Key Point for Investors: Since Eagle County declined to create a unified STR ordinance, each municipality within the county—including Gypsum—maintains its own regulatory framework. Investors should focus on Gypsum's local regulations, zoning requirements, and any relevant HOA/metro district rules that may apply to their specific property.

How to Start a Short-Term Rental Business in Gypsum

Step 1: Verify Zoning Compliance

Before proceeding, confirm that your property is zoned appropriately for short-term rental use:

• Review the Gypsum Zoning Map to determine your property's zoning classification
• Contact the Planning & Zoning Department to confirm STRs are permitted in your specific zone
• If in a Planned Unit Development (PUD), verify subdivision regulations may apply

Step 2: Business Registration and Licensing

• Register your short-term rental business with the Town of Gypsum
• Obtain any required business licenses (check the License, Fees & Tax Forms page)
• Collect and remit applicable sales taxes as required by town regulations

Step 3: Compliance Setup

• Ensure your property meets all building codes and safety requirements
• Comply with any HOA or metro district restrictions that may be more restrictive than town requirements
• Establish procedures for waste management, parking, and guest conduct

Required Documents, Permits, Licenses, and Guidelines

Based on the available information, investors should prepare for the following requirements:

Municipal Requirements

• Business License: Required for operating any business within town limits
• Sales Tax Registration: Mandatory for collecting and remitting local sales taxes
• Zoning Compliance Verification: Confirm STRs are permitted in your specific zoning district

Property-Specific Requirements

• Building Permits: May be required for any structural modifications or improvements
• Fire Safety Compliance: Must meet all applicable fire codes and safety standards
• Parking Permits: If on-street parking restrictions apply to your STR operation

Documentation

• Property Insurance: Adequate coverage for commercial rental activity
• Business Liability Insurance: Protection against guest-related incidents
• HOA Documentation: Written approval or confirmation that STRs are permitted (if applicable)

Note: Specific permit applications and forms should be obtained from the Town of Gypsum's Forms, Permits, & Applications page or by contacting the appropriate departments directly.

Specific Regulations for Short-Term Rentals

Gypsum Municipal Regulations

While specific STR ordinances weren't detailed in the provided content, Gypsum maintains zoning regulations under Title 17 and Title 18 of the Municipal Code. Key zoning considerations include:

• Residential Zones: Most residential zoning districts may permit STRs, but verification is required
• Commercial Zones: May have different requirements or restrictions for STR operations
• Height and Setback Requirements: Standard zoning restrictions continue to apply to STR properties

Eagle County Framework

• No County-Level Ordinance: Eagle County explicitly decided against creating county-wide STR regulations as of May 13, 2025
• Municipal Autonomy: Each town, including Gypsum, maintains independent STR regulatory authority
• HOA/Metro District Authority: These entities retain the power to implement their own STR restrictions, potentially more restrictive than town requirements

State-Level Context (Colorado)

Colorado allows local municipalities significant autonomy in STR regulation following House Bill 1117 (2021). The regulatory environment continues to evolve, with proposed legislation addressing:

• Excise tax possibilities for counties and statutory cities
• Property tax implications for STR properties
• Potential vacancy taxes in some jurisdictions

Important: Always verify current local regulations, as this landscape continues to evolve.

Contact Information for Local STR Authorities

Town of Gypsum - Planning & Zoning Department

Primary Contact for Zoning and Permitting:

Christopher Wagner
Associate Planner
Phone: (970) 524-1742
Email: Contact via Town website
Role: Zoning compliance and development requirements

James Wooldridge
Planner II
Phone: (970) 524-1739
Email: Contact via Town website
Role: Planning applications and zoning verification

Main Office:
Town of Gypsum
50 Lundgren Blvd.
P.O. Box 130
Gypsum, CO 81637
Phone: (970) 524-7514

Eagle County Government

County-Level Coordination (Limited STR Role):

Eagle County Government
500 Broadway, P.O. Box 850
Eagle, CO 81631
Phone: (970) 328-8600 | (800) 225-6136
Email: info@eaglecounty.us
Spanish: preguntas@eaglecounty.us

Note: Eagle County no longer maintains active STR regulations, but may assist with general county services or unincorporated area inquiries.

Additional Resources

• Gypsum Municipal Code: Municode Code Library
• Online Permit Portal: Eagle County Online Portal
• Gypsum Zoning Map: Interactive Zoning Map

Source Links and Additional References

Primary Government Sources

• Eagle County Draft Short Term Rental Ordinance Page - Contains the final decision on county-level regulations
• Town of Gypsum Zoning Regulations - Primary source for zoning requirements
• Gypsum Municipal Code - Title 17 (Subdivisions)
• Gypsum Municipal Code - Title 18 (Zoning)

News and Policy Coverage

• Vail Daily - Eagle County STR Decision Coverage - Confirmation of county decision not to regulate
• Summit Daily - Colorado STR Alliance - State-level regulatory context

Application and Forms

• Gypsum Business License and Tax Forms
• Gypsum Building Permits and Applications

Disclaimer: This guide is based on available information as of October 2025. Local regulations can change frequently, particularly in resort communities. Investors should always verify current requirements directly with local authorities before making investment decisions or beginning operations.