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 March 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 March 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 March 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.
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Regulations
Vail’s short-term rental regulations are somewhat investor-friendly, with different zoning regulations and limitations in place. Understanding these regulations is crucial for potential investors to ensure compliance and a smooth operation.
Airbnb Rental Laws and Regulations
One of the factors that have contributed to the growth of the short-term rental market in Vail is the investor-friendly regulatory environment. Unlike some other markets, Vail has relatively relaxed regulations when it comes to short-term rentals.
Property owners are not required to obtain a special license or permit in order to rent out their homes on a short-term basis. However, there are some basic requirements that must be met, such as obtaining a sales tax license and complying with safety and health regulations.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Colorado with 4.66% of the total inventory and an average review of 4.65⭐️s .
Demographics and Climate
Vail has a small population of approximately 5,400 people, according to the U.S. Census Bureau. The median household income in Vail is $103,870, which is higher than the national median household income. This is not surprising given that Vail is a popular tourist destination and a hub for luxury tourism.
The climate in Vail is predominantly cold and snowy. Winters are long and harsh, with temperatures often dropping below freezing. Summers are mild and sunny, with temperatures averaging around 70 degrees Fahrenheit. The town receives an average of 200 inches of snowfall per year, making it a popular destination for winter sports enthusiasts.
Sports and Education
Vail is home to several sports teams, including the Vail Valley Soccer Club and the Vail Grizzlies baseball team. The town is also known for its world-renowned ski resorts, which attract thousands of skiers and snowboarders every year.
Vail does not have any colleges or universities within its borders. However, there are several colleges and universities located nearby, including Colorado Mountain College and the University of Colorado Boulder.
Guests
The majority of the guests come from inside of Colorado. 10.54% of all guests are from Denver followed by New York with 2.39%.
Crime and Tourism
Vail has a low crime rate compared to other towns in the United States. According to NeighborhoodScout, the crime rate in Vail is 54% lower than the national average. This makes Vail a safe and secure destination for tourists and residents alike.
Vail is a popular destination for tourists from all over the world. According to the Vail Valley Foundation, visitors to Vail come from all over the United States, as well as from international destinations such as Mexico, Canada, and Australia. In 2019, Vail welcomed a total of 1,744,212 visitors, making it one of the most popular tourist destinations in the United States.
Tourist Attractions and Peak Season
Vail is known for its world-class ski resorts, which attract skiers and snowboarders from all over the world. Other popular tourist attractions in Vail include the Betty Ford Alpine Gardens, the Vail Mountain Bike Park, and the Vail Village Farmers’ Market.
The peak season in Vail is during the winter months, from December to February. This is when the ski resorts are at their busiest and when the town is filled with tourists. However, Vail is also a popular destination during the summer months, when visitors come to enjoy the town’s natural beauty and outdoor activities.
Conclusion
Overall, the short-term rental market in Vail, CO remains an attractive opportunity for investors who are looking for high rental yields and a relatively low tax burden. With the market continuing to grow and the supply of short-term rental properties increasing, there is still plenty of opportunity for new investors to enter the market. However, as with any real estate investment, it is important to do thorough research and due diligence before making a purchase, in order to ensure that you are making a sound investment decision.
