Montrose, CO Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

52 / 100

Montrose presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Montrose Short-Term Rental Market Overview

Montrose, CO sits at the crossroads of Colorado's Western Slope, offering investors a small but growing short-term rental market with 99 active Airbnb listings and an average annual revenue of $25,834. With an ADR of $181—well below the $529 state average—the market trades on affordability rather than premium nightly rates, and the 86% year-over-year listing growth signals rising investor interest. Occupancy currently averages 26%, which trails the statewide 45% benchmark, so success here hinges on targeting the right property size and managing seasonal swings effectively.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 99
Average Daily Rate (ADR) vs. $529 state avg. $181
Average Occupancy Rate vs. 45% state avg. 26%
RevPAN ADR * Occupancy Rate $47
Average Monthly Revenue Historical 12-month average $2,152
Average Annual Revenue Historical 12-month average $25,834

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Montrose

Montrose appeals to investors seeking an affordable entry point into Colorado's outdoor recreation corridor, where above-average occupancy stability and market growth can offset a competitive supply environment.

Key investment factors

  • Gateway access to Black Canyon of the Gunnison National Park and Western Slope recreation drives seasonal tourist demand
  • Average home values of $700,918 paired with $25,834 in annual revenue create a value play compared to pricier Colorado resort markets
  • 86% year-over-year listing growth reflects strong and rising investor confidence in the market
  • Above-average occupancy stability suggests dependable baseline demand even during slower months
  • Larger properties (3–4 bedrooms) command significantly higher RevPAN, offering a clear path to better returns

Expert Market Assessment

"Montrose presents a competitive but nuanced opportunity for STR investors willing to do their homework. Revenue peaks sharply in July at $3,399 per month and stays elevated through the summer and early fall, while winter months dip to roughly $1,058–$1,154—creating meaningful seasonality that investors must plan around. The ROI score of 52 out of 100 reflects a market where demand fundamentals are healthy (above-average occupancy stability and growth trend), but a below-average revenue-to-price ratio and tightening supply-demand balance mean not every deal will pencil out. Investors who focus on larger, well-amenitized properties and price aggressively during shoulder months stand the best chance of generating competitive returns."

— Rabbu Market Analysis Team

Understanding Montrose's ROI Score: 52/100

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

What This Means for Investors

Montrose's ROI score of 52 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has genuine potential but requires disciplined deal selection. Above-average marks in occupancy stability and market growth trend are encouraging, but a below-average revenue-to-price ratio—driven by $700,918 average home values against $25,834 in annual revenue—means not every purchase will cash-flow comfortably. Investors should pair this data with thorough local regulatory research and focus on property types (particularly 3–4 bedrooms) that have demonstrated stronger per-night returns.

Short-Term Rental Regulations in Montrose

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

Permit Requirements

Short-term rental operators in Montrose, CO may need to obtain a permit or business license from the City of Montrose, and Colorado state regulations may also apply. Investors should verify current requirements directly with local planning and licensing offices before purchasing a property.

Key Restrictions

Common STR restrictions in Colorado municipalities can include occupancy limits, minimum stay requirements, noise and nuisance ordinances, parking mandates, and HOA-level prohibitions. Some jurisdictions also cap the number of active permits, so confirming availability early in the process is important.

Tax Obligations

Short-term rental hosts in Colorado are typically subject to state sales tax, county lodging tax, and potentially local tourism or occupancy taxes. Many booking platforms collect and remit some of these taxes automatically, but hosts should confirm their full obligation with the Colorado Department of Revenue and Montrose County.

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

Short-Term Rental Financing for Montrose

Financing an Airbnb investment in Montrose 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 Montrose Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Montrose's STR market is likely to see continued supply growth given the 86% year-over-year listing increase, which could put additional pressure on occupancy unless demand keeps pace. Seasonal revenue patterns suggest ADR gains of 1–3% are plausible during the strong June-through-September corridor, while off-peak months may remain soft with monthly revenues hovering around $1,000–$1,600. Above-average occupancy stability and market growth trend scores indicate that demand fundamentals are firming, though investors should expect occupancy rates in the mid-20s to low-30s range market-wide. Selective deal sourcing—particularly targeting larger properties—will be key to outperforming in an increasingly competitive landscape."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Montrose, CO

What is the average Airbnb occupancy rate in Montrose?
The average Airbnb occupancy rate in Montrose is currently 26%, which is below the Colorado state average of 45%. Occupancy varies by property size, with 1- and 2-bedroom listings averaging 27–28% and 4-bedroom properties dropping to around 17%. These figures reflect annual averages, so peak summer months will see noticeably higher occupancy than winter.
How much do Airbnb hosts make in Montrose?
On average, Airbnb hosts in Montrose earn approximately $2,152 per month or $25,834 per year based on trailing 12-month booking data. Revenue varies significantly by property size: 1-bedroom listings average about $15,992 annually, while 4-bedroom properties can reach $46,072. Peak earnings occur in July, when the average listing brings in around $3,399.
Is Montrose a good market for Airbnb investment?
Montrose carries an ROI score of 52 out of 100, placing it in the 'Competitive Opportunity' category. The market shows above-average occupancy stability and growth trends, but a below-average revenue-to-price ratio means investors need to be selective about which properties they acquire. Larger homes tend to deliver stronger RevPAN, and the rapidly growing listing count (86% year-over-year) signals both opportunity and increasing competition.
What is the average daily rate (ADR) for Airbnb in Montrose?
The average daily rate for Airbnb listings in Montrose is $181, considerably lower than the Colorado state average of $529. ADR scales with property size: 1-bedroom units average $109, 2-bedrooms average $133, 3-bedrooms average $162, and 4-bedroom properties command $363 per night.
Are short-term rentals legal in Montrose?
Short-term rentals are generally permitted in Montrose, CO, though operators may need to secure appropriate permits, business licenses, or registrations at the city and/or county level. Regulations can change, so prospective investors should consult the City of Montrose and Montrose County directly to confirm current rules, zoning requirements, and any applicable restrictions before listing a property.
When is peak season for Airbnb in Montrose?
Peak season in Montrose runs from June through September, with July being the strongest month at an average revenue of $3,399. August ($3,093) and September ($2,776) also perform well. The slowest months are January and February, when average revenue drops to approximately $1,154 and $1,058, respectively—roughly one-third of peak-month earnings.
How many Airbnbs are there in Montrose?
As of April 2026, there are 99 active Airbnb listings in Montrose. The market has seen significant growth, with an 86% year-over-year increase in active listings. Supply is fairly evenly distributed among smaller properties: 30 one-bedroom listings, 27 two-bedrooms, 27 three-bedrooms, and 8 four-bedroom properties.
How is Airbnb revenue calculated in Montrose?
The annual and monthly revenue figures for Montrose are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remainder up to 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 window. Individual results can vary based on property quality, pricing strategy, 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 by market and property size
  • Average daily rate, occupancy, and RevPAN trends across property configurations
  • Monthly and annual revenue metrics based on trailing 12-month historical booking data
  • Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
  • Amenity prevalence data across active listings in the market

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots; market conditions can shift due to regulatory changes, economic factors, or seasonal variation. Individual property results will vary based on location, quality, pricing strategy, and management approach.

Next Steps

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