Short-term rentals in Durango
Durango limits vacation rentals to certain zones, caps its historic neighborhoods with a waitlist and cancels permits when a property changes hands.

AirDNA market averages (markets with at least 150 active listings), atlas updated September 2026, in US dollars. An average across all property sizes, not a promise. Rules status: our summary — read the text and the guide.
Durango is a real town before it is a resort: a college, a lively historic downtown and a working river, with the narrow gauge railroad to Silverton, Purgatory ski area to the north and Mesa Verde National Park to the west. That spread of attractions gives it a longer season than a pure ski town, with summer the strongest stretch and winter carried by skiers. Rentals range from Victorian homes near Main Avenue to cabins and condos along the highway toward Purgatory.
City limits: permits and tightly capped neighborhoods
Within the City of Durango, renting for 1 to 29 days requires a limited use permit from Community Development, a business license and registration for lodgers' and sales taxes. Vacation rentals are allowed in the central business district, mixed-use zones, some planned developments and the two Established Neighborhoods around downtown, and prohibited in several subdivisions. The Established Neighborhoods carry small fixed caps, and the city states that most capped zones have reached their limits, so applicants join a waitlist. On any street segment in those neighborhoods, a second rental needs Planning Commission approval and a third is not allowed. Permits lapse when the property is sold, and parking, occupancy and noise standards apply.
La Plata County
Much of the demand for cabins and larger homes lies outside city limits, in unincorporated La Plata County, which applies its own requirements. Rural subdivisions also often carry covenants on rentals, so check both for the specific parcel before relying on income.
Taxes
Guests pay state, county and city sales taxes and the city lodgers' tax. Platforms handle the state-administered taxes, while city lodgers' tax filings, and anything booked directly, may remain your job.
The question to ask before the offer
In the Established Neighborhoods, the useful question is not whether vacation rentals are allowed but what the street segment already carries: a second rental on that segment needs Planning Commission approval, and a third is not allowed at all. Since a permit lapses when the property is sold and the city reports most capped zones at their limit, a house marketed as a proven rental may be selling a history rather than a future. Ask for the permit, its zone and the waitlist position before agreeing a price.
Our advice
In town, look first at commercial and mixed-use zones, where a permit is realistic, and never pay extra for a permit that will not survive the closing. For a cabin or mountain home, the county code and HOA documents decide. Wildfire season can disrupt summer travel and affects insurance, so ask about both before buying. We study every request and tell you honestly whether and how we can help.
Around Durango
Read next
Sources
- City of Durango - Vacation Rental Information (consulted 2026-09-27)
- City of Durango - Initial application period set for vacation rental permit waitlist (consulted 2026-09-27)
- Colorado Department of Revenue - Sales & Use Tax Topics: Rooms & Accommodations (consulted 2026-09-27)
Updated 10/10/2026.
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