Telluride

As of May 2026, Telluride, Ouray, Crested Butte, Montrose have 2,313 active Airbnb and VRBO listings. This represents a 2% decrease from the previous year.

The average Airbnb or VRBO in Telluride generates $66K per year. High-performing properties earn $138K/year, while low-performing properties earn $33K/year. This wide disparity highlights a polarized market where revenue potential is heavily concentrated among top-tier assets, suggesting that generic inventory faces significant headwinds as overall market revenue experiences a sharp 32% year-over-year decline.

Average home prices in Telluride vary by property size: 1-bedroom properties cost approximately $491K, 2-bedroom homes average $490K, 3-bedroom properties are around $589K, and 4+ bedroom homes average $981K. These prices reflect median home values across the Telluride, Ouray, Crested Butte, Montrose area.

Airbnb and VRBO can be profitable in Telluride, with an average gross yield of 11% across all properties. High-performing properties achieve yields up to 22%, which is considered top for short-term rental investment. The gap between average and top-tier yields suggests that current market conditions favor assets capable of commanding premium positioning despite a contraction in total revenue.

The average occupancy rate for Airbnbs and VRBOs in Telluride is 33%. This occupancy level, combined with an average nightly rate of $553, results in a RevPAR (revenue per available room) of $130 per day.

2-bedroom properties demonstrate the strongest performance in Telluride, with an average gross yield of 11% and annual revenue of $60K. These properties balance purchase price ($490K), operating costs, and rental demand most effectively in the Telluride market.

Short-term rental regulations vary by jurisdiction in the Telluride area. Telluride: Strict. License required, 250-unit cap reached, waitlist exists. Active enforcement with significant fines for violations. Ouray: Moderate. Business license and sales tax registration required. No caps but zoning restrictions apply. Moderate enforcement. Crested Butte: Strict. License required, owner-occupancy mandate for some zones, density limits enforced. Active monitoring and compliance checks. Montrose: Lenient. Business license and sales tax registration needed. No caps or major restrictions. Light enforcement focus. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Telluride Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 2% year-over-year, while RevPAR has decreased 32%. This indicates balanced supply-demand dynamics. The simultaneous decline in both metrics points to a market correction where reduced inventory has not yet offset the impact of softer consumer spending on nightly revenue generation.

Launch around December, 2-3 months before peak winter season (March peaks). This pre-peak timing lets you build reviews when competition is 21% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (May-April) when gaining traction is harder.

The most common amenities in Telluride listings include: Kitchen (88%), Washing Machine (79%), Tv (75%), Heating (56%), Balcony (55%). Amenities that boost revenue the most include Gym, Hot Tub, Sauna, with Gym properties earning approximately 81% more ($177K/year vs $98K/year).

Monthly estimated revenue per listing in Telluride over the last 12 months: May: $2K, June: $4K, July: $6K, August: $5K, September: $4K, October: $3K, November: $1K, December: $5K, January: $4K, February: $6K, March: $7K, April: $1K. 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 Telluride is $553, up 6% year-over-year. By property size: 1-bedroom properties average $306/night, 2-bedroom properties average $463/night, 3-bedroom properties average $582/night, 4+ bedroom properties average $1K/night. Rates peak in March and are lowest in May.

Guests in Telluride book an average of 46 days in advance, down 12% from last year. By property size: 1-bedroom: 40 days, 2-bedroom: 48 days, 3-bedroom: 50 days, 4+ bedroom: 54 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Telluride Airbnb and VRBO market has seen the following changes: supply declined 2%, revenue per listing decreased 32%, occupancy fell 18%, average nightly rates increased 6%, and lead time decreased 12%. These shifts reveal a market pivot toward shorter booking windows and higher pricing resilience, even as lower occupancy levels signal a contraction in aggregate demand.

In Telluride, Friday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Thursday and are lowest on Tuesday. Weekends show 22% higher occupancy than weekdays.