Introduction
Vail, Colorado is one of the most popular ski destinations in the United States, attracting thousands of visitors each year.
The short-term rental market in Vail has grown rapidly in recent years, as property owners have taken advantage of the opportunity to earn additional income by renting out their homes to tourists.
Market Overview
To understand the dynamics of the short-term rental market in Vail, let’s delve into some key statistics and figures.
Supply
The most popular homes are 2-bedroom homes, comprising 29.81% of inventory. This is followed by 1 and 3-bedroom homes at 26.56% and 20.76% of the total inventory, respectively.
Homes Appreciation
AS of July 2025, according to Zillow, homes in Vail experienced an appreciation of 7.14%. This data indicates a significant increase in property values.
Median Home Value
As of January of 2025, Homes in Vail have appreciated by 7.14%. The median home value in Vail is $1,700,000 as reported by Zillow. This figure highlights the city’s robust real estate market and the potential for long-term property appreciation.
Active Short Term Rentals
AS of July 2025, Vail boasts a significant Airbnb rental market, with approximately 1,122 active rentals. This abundance of available properties provides ample opportunities for investors and homeowners looking to capitalize on the tourism demand.
Average Daily Rate
The median ADR for the market is $435. The Average Daily Rate is the highest for 5 bedroom homes ($773) followed by 4-bedrooms and 3 bedrooms at $681 and $588 respectively.
Occupancy Rate
Chalet data reveals an occupancy rate of 56% for Airbnb rentals in Vail. This high demand ensures a consistent stream of income for property owners and investors.
How Profitable is Airbnb in Vail ?
AS of July 2025, the average gross yield, which represents the annual income generated by a property as a percentage of its value, is 5.87% in Vail. This figure suggests that short-term rentals in the city offer a favorable return on investment. Vail is ranked #92 by return on investment on Airbnb rentals in the United States.
Annual Revenue
According to Chalet, short-term rentals in Vail earn an average of $49,234 annually, highlighting the strong investment potential in the city’s market. You can evaluate your properties using our free Airbnb calculator.
Property Tax
According to SmartAsset, the average property tax in Vail is 0.41%. This relatively moderate tax rate is an important consideration for those looking to invest in short-term rental properties.
