Palmer Lake, CO Airbnb Market Data, Statistics, and Occupancy Rates

Palmer Lake Short-Term Rental Market Overview

Palmer Lake, CO is a small but growing short-term rental market nestled along Colorado's Front Range, with just 25 active Airbnb listings and an average annual revenue of $29,227 per property. The market has seen substantial year-over-year listing growth of 121%, signaling rising investor interest in this mountain-adjacent community. With an average daily rate of $169 — well below the $529 Colorado state average — and occupancy sitting at 31%, the market offers accessible pricing but demands careful property selection to achieve strong returns.

Key Market Statistics

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

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

Why Investors Consider Palmer Lake

Investors are drawn to Palmer Lake for its affordable entry point relative to Colorado mountain markets, its outdoor recreation appeal, and the opportunity to capture demand in a still-developing STR market.

Expert Market Assessment

"Palmer Lake presents a competitive but selective opportunity for STR investors. The market's ROI score of 53 out of 100 reflects a below-average revenue-to-price ratio — with average home values at $757,437 and annual revenue around $29,227, the yield math requires disciplined deal sourcing. Seasonality is a defining feature: July revenues peak at $4,350 while February dips to just $1,139, creating a roughly 4:1 spread that investors need to plan around. Properties that can attract bookings during shoulder months through amenities like hot tubs or pet-friendliness will outperform the market average."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Palmer Lake

Average revenue by month in Palmer Lake

Palmer Lake exhibits strong seasonality, with July topping out at $4,350 in average revenue and February bottoming at $1,139 — a nearly 4x spread. The summer months of June through August collectively account for the bulk of annual earnings, while winter months from November through February represent the softest period for hosts.

Active Airbnb listings by property size in Palmer Lake

The market's supply is tightly concentrated, with 7 three-bedroom and 6 two-bedroom listings making up the tracked inventory. This narrow distribution suggests limited competition within each size category, though it also means the data is sensitive to individual listing performance.

Average daily rate (ADR) by property size in Palmer Lake

ADR scales modestly from $130 for 2-bedroom properties to $141 for 3-bedrooms, an $11 premium that may not fully offset the higher acquisition and operating costs of larger homes. Investors targeting this market should weigh whether the marginal rate increase justifies the additional bedroom.

Average RevPAN by property size in Palmer Lake

Two-bedroom listings deliver a significantly higher RevPAN of $73 compared to just $35 for 3-bedroom properties, driven largely by their much stronger occupancy rates. This makes 2-bedroom units the more efficient earners on a per-available-night basis in Palmer Lake.

Average occupancy rates by property size in Palmer Lake

Occupancy diverges sharply by size: 2-bedroom listings average 56% while 3-bedroom properties manage only 25%. For investors prioritizing steady cash flow and booking consistency, the smaller configuration presents a notably lower vacancy risk.

Average monthly revenue by property size in Palmer Lake

Three-bedroom properties edge out 2-bedrooms in average monthly revenue at $2,459 versus $2,150, despite their lower occupancy. The higher nightly rate of 3-bedroom units partially compensates for fewer booked nights, though the gap is relatively narrow at roughly $300 per month.

Average annual revenue by property size in Palmer Lake

On an annual basis, 3-bedroom listings generate approximately $29,516 compared to $25,801 for 2-bedroom properties. However, given the superior RevPAN and occupancy of 2-bedroom units, investors should consider total return on investment — including acquisition cost — rather than top-line revenue alone.

Most common amenities for Airbnb listings in Palmer Lake

Parking is universal at 100% of listings, while washer, dryer, kitchen, and self check-in each appear in 92–96% of properties, establishing these as baseline guest expectations. Outdoor-oriented amenities like patios (72%), BBQ grills (68%), and lake access (40%) reflect the market's nature-driven appeal, and adding differentiators like hot tubs (currently only 28%) or pet-friendliness (40%) could help a listing stand out.

Understanding Palmer Lake's ROI Score: 53/100

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

What This Means for Investors

Palmer Lake's ROI score of 53 out of 100 places it in the Competitive Opportunity band, reflecting a market where demand exists but the revenue-to-price ratio is below average — home values near $757K against $29K in annual revenue require careful underwriting. Occupancy stability, market growth, and supply/demand balance all rate as average, meaning the fundamentals are sound but not exceptional. Investors should pair this data with thorough local regulatory research and focus on properties that can outperform market averages through superior amenities, pricing, and guest experience.

Short-Term Rental Regulations in Palmer Lake

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

Permit Requirements

Short-term rental operators in Palmer Lake, Colorado may need to obtain a local business license or STR permit before listing their property. Investors should verify current requirements directly with the Town of Palmer Lake and El Paso County, as rules can evolve with the market's rapid growth.

Key Restrictions

Common restrictions in Colorado mountain communities can include occupancy limits, minimum night stays, parking requirements, noise ordinances, and trash management rules. HOA covenants may impose additional limitations, so investors should review any applicable community guidelines before purchasing a property intended for short-term rental use.

Tax Obligations

STR operators in Colorado are generally 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 specific obligations with the Colorado Department of Revenue and local tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Palmer Lake's STR performance is likely to remain tied to its pronounced summer seasonality, with peak revenues concentrated between June and August. Given the 121% year-over-year growth in active listings, occupancy rates may face modest downward pressure unless demand keeps pace — investors should anticipate occupancy holding in the 28–34% range market-wide. ADR could see incremental increases of 2–5% as newer listings optimize pricing, though the market's small size means individual property quality will have an outsized impact on results."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Palmer Lake, CO

What is the average Airbnb occupancy rate in Palmer Lake?

The average occupancy rate for Airbnb listings in Palmer Lake is currently 31%, which is below the Colorado state average of 45%. Occupancy varies significantly by property size — 2-bedroom listings average 56% occupancy while 3-bedroom properties sit at 25%. This suggests smaller, well-priced properties tend to stay booked more consistently in this market.

How much do Airbnb hosts make in Palmer Lake?

Airbnb hosts in Palmer Lake earn an average of $2,435 per month and approximately $29,227 per year based on trailing 12-month booking data. Revenue is heavily seasonal, ranging from around $1,139 in February to $4,350 in July. Three-bedroom properties generate slightly more annually at $29,516 compared to $25,801 for 2-bedroom listings.

Is Palmer Lake a good market for Airbnb investment?

Palmer Lake carries a Rabbu ROI Score of 53 out of 100, placing it in the 'Competitive Opportunity' category. While investor interest and demand are growing — listing counts surged 121% year-over-year — the revenue-to-price ratio is below average given home values averaging $757,437. Success here depends on selective deal sourcing, strong amenity packages, and effective pricing strategies to maximize the summer peak season.

What is the average daily rate (ADR) for Airbnb in Palmer Lake?

The average daily rate in Palmer Lake is $169, which is significantly lower than the Colorado state average of $529. By property size, 2-bedroom listings average $130 per night while 3-bedroom properties command $141. These rates reflect Palmer Lake's positioning as a more affordable mountain-area destination compared to Colorado's major resort markets.

Are short-term rentals legal in Palmer Lake?

Short-term rentals operate in Palmer Lake, CO, as evidenced by 25 active Airbnb listings in the market. However, local regulations may require permits, business licenses, or compliance with specific zoning rules. Investors should contact the Town of Palmer Lake directly and review any applicable HOA restrictions before purchasing a property for STR use.

When is peak season for Airbnb in Palmer Lake?

Peak season in Palmer Lake runs from June through August, with July being the highest-earning month at an average of $4,350 in revenue. June and August follow closely at $3,657 and $3,691 respectively. The slowest months are January and February, when average revenue drops to $1,264 and $1,139 — making cash reserves or alternative income strategies important for the winter months.

How many Airbnbs are there in Palmer Lake?

There are currently 25 active Airbnb listings in Palmer Lake as of April 2026. The market has experienced remarkable growth, with a 121% year-over-year increase in active listings. The supply is concentrated in 2-bedroom (6 listings) and 3-bedroom (7 listings) configurations, with the remaining listings in other size categories.

How is Airbnb revenue calculated in Palmer Lake?

The annual and monthly revenue figures for Palmer Lake are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — not a forward-looking projection. 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 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 because each month draws on its own historical performance. 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 for Palmer Lake and surrounding markets
• Average daily rate, occupancy, and RevPAN metrics tracked over time
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Property size breakdowns for supply, pricing, and revenue analysis
• Home value data sourced from Zillow Home Value Index (ZHVI) for investment yield context

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. Local regulations, permit requirements, and tax obligations may change — always verify with municipal authorities before investing. With only 25 active listings, market-level averages can be influenced by individual property performance and may shift as supply grows.