Castle Rock, CO Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

59 / 100

Castle Rock offers attractive short-term rental potential, with a balance of healthy demand and revenue relative to property values.

Castle Rock Short-Term Rental Market Overview

Castle Rock, CO is a compact short-term rental market with just 42 active Airbnb listings and an average annual revenue of $37,165 per property. While the average daily rate of $166 sits well below Colorado's $529 state average, above-average occupancy stability and balanced supply-demand dynamics give this suburban Denver-area market a distinctive appeal for investors seeking steady, if modest, cash flow. Larger properties — particularly 4- and 5-bedroom homes — significantly outperform smaller units, signaling opportunity for investors willing to target family and group travelers.

Key Market Statistics

According to Rabbu market data, the Castle Rock short-term rental market shows:

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 42
Average Daily Rate (ADR) vs. $529 state avg. $166
Average Occupancy Rate vs. 45% state avg. 38%
RevPAN ADR * Occupancy Rate $64
Average Monthly Revenue Historical 12-month average $3,097
Average Annual Revenue Historical 12-month average $37,165

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Castle Rock

Castle Rock attracts STR investors because its stable occupancy patterns and limited supply create a predictable revenue environment within the broader Denver metro corridor.

Key investment factors

  • Above-average occupancy stability reduces the risk of prolonged vacancy periods
  • Small supply of just 42 active listings limits direct competition for well-positioned properties
  • Proximity to the Denver metro area supports both leisure and overflow business travel demand
  • 5-bedroom properties generate up to $76,797 annually, offering strong revenue upside for larger homes
  • Balanced supply and demand dynamics help protect against rate erosion

Expert Market Assessment

"Castle Rock presents an attractive but measured opportunity for STR investors. The market's 59/100 ROI score reflects a combination of solid occupancy stability offset by a below-average revenue-to-price ratio — average home values of $991,277 against $37,165 in annual revenue mean the yield math requires careful underwriting. Seasonality is pronounced, with July revenue ($4,885) running nearly three times February's ($1,731), so investors should plan for lean winter months. That said, the small competitive set and consistent demand patterns make this a market where a well-run, amenity-rich property can meaningfully outperform the average."

— Rabbu Market Analysis Team

Understanding Castle Rock's ROI Score: 59/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

Factor Castle Rock Performance Weight
Revenue-to-Price Ratio Below average 40%
Occupancy Stability Above average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Castle Rock's ROI score of 59 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average occupancy stability and balanced supply-demand conditions that support predictable booking patterns. The main drag on the score is a below-average revenue-to-price ratio — with average home values near $991,277 against $37,165 in annual revenue, investors need to underwrite conservatively and may benefit from targeting higher-earning property sizes. Pairing this data with thorough local regulatory research and a clear understanding of seasonal revenue swings will help investors make a well-informed decision.

Short-Term Rental Regulations in Castle Rock

Understanding local STR regulations is essential before investing in Castle Rock. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Castle Rock, Colorado may be required to obtain a business license or STR-specific permit before listing a property. Investors should verify current permit and registration requirements directly with the Town of Castle Rock and Douglas County authorities before purchasing.

Key Restrictions

Common restrictions that may apply in Castle Rock include occupancy limits per bedroom, minimum stay requirements, noise ordinances, and parking mandates. HOA covenants are particularly relevant in this market given the prevalence of planned communities, and investors should confirm that their property's HOA permits short-term rental activity before proceeding.

Tax Obligations

Short-term rental hosts in Colorado are generally subject to state sales tax, county lodging tax, and potentially local occupancy taxes. Platforms like Airbnb often collect and remit a portion of these taxes automatically, but operators should confirm their full tax obligations with a local tax professional to ensure compliance.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Castle Rock can provide current regulatory guidance.

Short-Term Rental Financing for Castle Rock

Financing an Airbnb investment in Castle Rock requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Castle Rock Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Castle Rock's STR market is expected to maintain its current trajectory of stable demand, supported by above-average occupancy consistency and average market growth trends. Summer months will likely continue to drive the bulk of annual revenue, with July remaining the peak earner — investors should anticipate ADR increases in the range of 1–3% as the market matures. Winter softness (January–February revenues around $1,731–$1,930) will persist, so operators should budget for seasonal dips. With listing growth essentially flat year-over-year at 101%, the market isn't showing signs of oversupply pressure, which bodes well for existing hosts."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Castle Rock, CO

What is the average Airbnb occupancy rate in Castle Rock?
The average Airbnb occupancy rate in Castle Rock is currently 38%, which sits below Colorado's 45% state average. However, occupancy varies significantly by property size — 4-bedroom listings lead at 49%, while 5-bedroom properties trail at 29%. The market's occupancy stability is rated above average, meaning hosts can generally count on consistent booking patterns even if the headline rate appears moderate.
How much do Airbnb hosts make in Castle Rock?
Airbnb hosts in Castle Rock earn an average of $3,097 per month, or roughly $37,165 per year based on trailing 12-month performance. Revenue varies dramatically by property size: 1-bedroom listings average about $20,903 annually, while 5-bedroom properties bring in approximately $76,797. Summer months are the strongest earning period, with July topping out at $4,885 in average monthly revenue.
Is Castle Rock a good market for Airbnb investment?
Castle Rock earns a 59 out of 100 on Rabbu's ROI Score, classified as an 'Attractive Opportunity.' The market benefits from above-average occupancy stability and balanced supply-demand dynamics, though the revenue-to-price ratio is below average given home values averaging $991,277. Investors targeting larger properties (3–5 bedrooms) may find the best return potential, as these configurations generate significantly higher revenue. Pairing this data with local regulatory research and a careful look at acquisition costs is recommended.
What is the average daily rate (ADR) for Airbnb in Castle Rock?
The average daily rate for Airbnb listings in Castle Rock is $166, well below Colorado's statewide average of $529. ADR scales with property size, ranging from $108 for 1-bedroom units up to $285 for 5-bedroom homes. This lower ADR reflects the market's suburban positioning relative to Colorado's resort and mountain destinations, but it also means lower guest price sensitivity during off-peak months.
Are short-term rentals legal in Castle Rock?
Short-term rentals are currently operating in Castle Rock, CO, with 42 active Airbnb listings in the market. However, local regulations including permits, licensing, and zoning restrictions may apply. Prospective investors should check directly with the Town of Castle Rock and Douglas County for the latest rules, including any HOA restrictions that may affect STR eligibility in specific neighborhoods.
When is peak season for Airbnb in Castle Rock?
Peak season in Castle Rock runs from June through August, with July being the strongest month at $4,885 in average revenue. The summer stretch from May through September consistently outperforms the rest of the year. The slowest months are January and February, when average revenue dips to $1,930 and $1,731 respectively — roughly a third of peak-month earnings.
How many Airbnbs are there in Castle Rock?
Castle Rock currently has 42 active Airbnb listings as of April 2026. The supply is dominated by 1-bedroom properties (16 listings), with 2-bedroom (9), 3-bedroom (5), 4-bedroom (5), and 5-bedroom (6) units making up the rest. Year-over-year listing growth is essentially flat at 101%, indicating a stable and uncrowded competitive landscape.
How is Airbnb revenue calculated in Castle Rock?
The annual and monthly revenue figures for Castle Rock are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up into a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance data. Individual results can vary meaningfully based on property quality, pricing strategy, location within Castle Rock, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

  • Regularly updated active Airbnb and STR listing counts for the Castle Rock market
  • Occupancy rates, average daily rates, and RevPAN trends by property size
  • Monthly and annual revenue performance based on trailing 12-month booking data
  • Popular amenity prevalence across active listings
  • Home value data sourced from the Zillow Home Value Index (ZHVI)

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Individual property results will vary based on location, condition, pricing strategy, and management quality. Regulatory requirements for short-term rentals may change; always verify current local rules before investing.

Next Steps

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