Short-Term Rentals in Buena Vista, Salida and Chaffee County: Rules, Taxes and Income

The rules here changed a lot in 2026 — verify before you buy

Every town and county in this valley rewrote or tightened its short-term rental rules during 2026. Caps, waiting lists and even temporary moratoriums are in play, and a license that is available today may not be available when your closing happens.

So treat this guide as a map of what to check, not as a green light. Before you buy a property with rental income in mind, get the current answer in writing from the specific clerk or planning office — and make the deal contingent on it.

What counts as a short-term rental

Colorado state law defines a short-term rental as a lodging unit rented for less than 30 days. There is no single statewide operating license — counties and municipalities regulate rentals locally, and private covenants can restrict them further.

Buena Vista's own definition is slightly different: a residential structure, or part of one, where the whole structure or two or fewer habitable spaces are offered to paying guests for 30 consecutive days or less. Because the town and the state word the threshold differently, ask the Town Clerk how a 30-night booking is treated.

Rentals of 30 consecutive days or more to a permanent resident may be exempt from sales tax under the right circumstances — but that exemption doesn't automatically lift a local land-use rule, and a bed-and-breakfast or homestay label doesn't guarantee a different classification either.

Buena Vista

The town regulates short-term rentals under Chapter 6, Article VII of its municipal code. An operator needs both a valid short-term rental license and a certificate of occupancy, with a separate license for each unit. The Town Clerk's Department runs licensing.

The town's page currently lists a $250 new-license fee and a $150 renewal fee for 2027, says 2027 renewal applications are accepted October 1–30, 2026, and that new applications begin being accepted November 16, 2026 — subject to available licenses and district caps.

Two 2026 ordinances reshaped the program: district-based percentage caps on licenses, deed-restricted units excluded, a qualifying full-time onsite live-in representative exemption, and limits on licenses per parcel and per person or entity. Separately, an emergency ordinance placed a temporary moratorium on accepting, processing and approving new applications. Whether that moratorium still controls a new application is exactly the question to put to the Clerk before you commit.

Chaffee County (unincorporated land)

Outside city limits, the Chaffee County Land Use Code applies — effective January 1, 2025 and amended September 16, 2025. It contains Appendix L, the Short-Term Rental Licensing Program.

The county's published page confirms the program exists but does not spell out district-by-district permissions, minimum acreage or density conditions. Nathrop, Alpine and Ohio City are not incorporated municipalities, so their parcels fall under county jurisdiction and the specific zoning. Before you buy unincorporated land for rentals, ask County Planning for the parcel's zoning, whether Appendix L allows the use there, and what application it requires.

Salida

Salida's amended rules took effect March 23, 2026, and the city runs a capped system: 85 licenses in R1/R2/R3/AG/PD zones, 99 in Mixed-Use Downtown, 50 in Mixed-Use Highway and Mixed-Use Center, and 75 in Mixed-Use Neighborhood.

Generally the applicant must own the property, county residency is required except in the Downtown and Center zones, licenses are non-transferable, and an owner may hold only one. Published fees are $1,000 for a new license plus a $200 first-time administrative fee, and $1,000 for annual renewal. The city also charges a quarterly occupational lodging tax of $15 per bedroom per night.

Leadville and Lake County

Leadville requires a city license for rentals of dwelling units for less than 30 consecutive days, split into resident-occupied and non-resident-occupied classes. The city says no non-resident-occupied licenses are currently available and runs a waitlist, with a 165-license limit affecting resident-occupied parcels with two or more units.

Lake County distinguishes uncapped Primary licenses from capped Standard licenses. The county states a 135-license Standard cap with a sub-cap of 19 in the Community Housing Overlay, and as of June 2, 2026 reported 12 Standard licenses available countywide and none in the overlay. Applications require proof of ownership, current property taxes, sales-tax documentation and a fire safety check, which the county lists at $50 and required every three years.

Lake County also requires a 24/7 contact arrangement, with an emergency contact able to reach the property within an hour and authority to respond. Don't assume that deadline applies everywhere — but assume some version of it exists.

A town license doesn't beat your subdivision covenants

This is the trap that costs people the most money. A county or town license does not establish that your deed, declaration or association allows the use. Private covenants can be stricter than public permission, and state legislative staff note that short-term rentals may be regulated through contracts and HOA covenants.

Before closing, get the complete recorded declaration and all amendments, the plat notes, the rules and regulations, and any architectural or rental policies. Look specifically for minimum lease terms, rental caps, owner-occupancy requirements, registration rules, and restrictions on transient or commercial use. Then ask the association or manager in writing whether short-term rentals are allowed and whether a cap or pending amendment applies. Verify the recorded documents independently with the County Clerk and Recorder rather than relying on a packet the seller hands you.

Taxes you'll actually collect

Colorado charges sales tax on the full amount charged for taxable rooms and accommodations, and publishes lodging-tax rates by location in form DR 1003 — there isn't one statewide lodging rate that applies everywhere.

Chaffee County levies a 1.9% countywide lodging tax on lodging rented for less than 30 consecutive days. Salida adds its $15 per bedroom per night occupational lodging tax, reported quarterly. For any specific address, use the state's address-based rate lookup rather than guessing, because home-rule cities administer their own.

A lodging tax is a tax on receipts — it is not the same thing as a municipal short-term rental operating license, and registering for one does not cover the other. An owner stays responsible for correct registration, collection, filing and remittance, and no booking platform reliably handles every state, county and municipal tax in every jurisdiction.

Insurance and life safety

Tell your insurer in plain language that the property will be used for paid short stays, and get written confirmation of coverage. Ask whether a commercial policy or a short-term rental endorsement is required, and whether liability, guest-caused damage, hot tub or pool exposure, and loss of income are covered. A standard homeowner policy may restrict business or transient-rental use, and the exact gap depends on policy language.

Smoke alarms, carbon monoxide alarms, safe egress and fire extinguishers are standard short-term rental checklist items, but confirm the applicable building and fire code for your specific structure and jurisdiction rather than assuming a uniform countywide rule. If you're adding a hot tub or pool, check local code, environmental health requirements and your insurer's conditions first.

What these rentals actually earn

The only figures available are third-party estimates, not owner financials. AirDNA's October 2026 snapshot reported 516 active Buena Vista listings at 53% occupancy, a $288 average daily rate and about $45,300 in average annual revenue. Its Salida snapshot reported 413 listings, 54% occupancy, a $278 average daily rate and about $47,200 average annual revenue.

The same class of sources puts Buena Vista's peak revenue in July and August and its trough in April and November — a very seasonal business, which matters more than the headline average.

Gross market averages say nothing about your bedroom count, availability, amenities, management, taxes, utilities, maintenance, licensing, insurance, cleaning or financing. Model conservative booked nights through a slow year, not the market average, and remember that a license cap or a covenant can take the whole income assumption away.

Before you buy with rental income in mind

Confirm in writing, for the specific address: whether a license is currently available in that zone and how many remain; whether any moratorium is in effect; whether the covenants allow the use; what the total tax load is; and whether your insurance can be written for it.

If a seller or listing is counting on rental income to justify the price, ask to see the actual license, the prior year's tax returns or platform statements, and the association's written confirmation. Then underwrite the property yourself, on your own numbers.