Pagosa Springs

As of May 2026, Pagosa Springs, Durango, Taos have 2,070 active Airbnb and VRBO listings. This represents a 3% increase from the previous year.

The average Airbnb or VRBO in Pagosa Springs generates $31K per year. High-performing properties earn $65K/year, while low-performing properties earn $13K/year. This significant performance variance suggests that revenue potential is heavily concentrated in a top tier of listings, likely capturing the bulk of the 28% occupancy market share.

Average home prices in Pagosa Springs vary by property size: 1-bedroom properties cost approximately $238K, 2-bedroom homes average $242K, 3-bedroom properties are around $314K, and 4+ bedroom homes average $485K. These prices reflect median home values across the Pagosa Springs, Durango, Taos area.

Airbnb and VRBO can be profitable in Pagosa Springs, with an average gross yield of 10% across all properties. High-performing properties achieve yields up to 21%, which is considered top for short-term rental investment. The wide yield gap highlights that while the market average is modest, top-tier assets effectively leverage the current supply-demand equilibrium.

The average occupancy rate for Airbnbs and VRBOs in Pagosa Springs is 28%. This occupancy level, combined with an average nightly rate of $266, results in a RevPAR (revenue per available room) of $63 per day.

2-bedroom properties demonstrate the strongest performance in Pagosa Springs, with an average gross yield of 10% and annual revenue of $28K. These properties balance purchase price ($242K), operating costs, and rental demand most effectively in the Pagosa Springs market.

Short-term rental regulations vary by jurisdiction in the Pagosa Springs area. Pagosa Springs: Lenient. Business license required, sales tax collection. Minimal restrictions, light enforcement in practice. Durango: Moderate. Business license and sales tax required, zoning compliance needed. Some neighborhoods restrict STRs. Moderate enforcement through complaints. Taos: Moderate. Business registration, lodgers tax required, 3% cap on dwelling units as STRs. Cap exists but enforcement moderate, many operate informally. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Pagosa Springs Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 3% year-over-year, while RevPAR has decreased 8%. This indicates balanced supply-demand dynamics. The contraction in revenue amidst steady supply growth suggests that market saturation is beginning to place downward pressure on individual unit earnings.

Launch around April, 2-3 months before peak summer season (July peaks). This pre-peak timing lets you build reviews when competition is 51% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (November-April) when gaining traction is harder.

The most common amenities in Pagosa Springs listings include: Kitchen (95%), Washing Machine (76%), Tv (75%), Balcony (58%), Heating (55%). Amenities that boost revenue the most include Washing Machine, Hot Tub, Internet, with Washing Machine properties earning approximately 34% more ($51K/year vs $38K/year).

Monthly estimated revenue per listing in Pagosa Springs over the last 12 months: May: $1K, June: $2K, July: $3K, August: $2K, September: $2K, October: $2K, November: $1K, December: $3K, January: $2K, February: $2K, March: $3K, April: $766. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Pagosa Springs is $266, up 20% year-over-year. By property size: 1-bedroom properties average $162/night, 2-bedroom properties average $202/night, 3-bedroom properties average $297/night, 4+ bedroom properties average $470/night. Rates peak in December and are lowest in May.

Guests in Pagosa Springs book an average of 35 days in advance, down 16% from last year. By property size: 1-bedroom: 28 days, 2-bedroom: 31 days, 3-bedroom: 38 days, 4+ bedroom: 47 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, supply grew 3%, revenue per listing decreased 8%, occupancy fell 14%, average nightly rates increased 20%, and lead time decreased 16%. These shifts point to a market transitioning toward shorter booking windows and increased price sensitivity, where higher rates are failing to compensate for the decline in overall occupancy.

In Pagosa Springs, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 27% higher occupancy than weekdays.