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

Paonia Short-Term Rental Market Overview

Paonia, CO is a small mountain community on Colorado's Western Slope with just 36 active Airbnb listings, making it a niche market where individual property performance can vary widely. With an average annual revenue of $20,259 and an average daily rate of $137—well below the $529 Colorado state average—this market appeals to budget-conscious travelers seeking rural retreats rather than luxury resort experiences. The 25% average occupancy rate signals a highly seasonal demand pattern, and a 40% year-over-year growth in active listings suggests rising investor interest that could tighten competition for available bookings.

Key Market Statistics

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

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

Why Investors Consider Paonia

Investors consider Paonia for its affordable entry point relative to broader Colorado markets, its growing appeal as a rural Western Slope getaway, and the small supply base that leaves room for well-positioned properties to stand out.

Expert Market Assessment

"Paonia presents a competitive but challenging opportunity for STR investors, reflected in its ROI score of 47 out of 100. The market's sharp seasonality—with July revenue nearly 3.5 times higher than February—means investors need to plan cash flow carefully around summer peaks and lean winter months. Below-average revenue-to-price ratios temper the upside, and the rapid 40% growth in active listings adds a layer of competitive risk. That said, well-located 2- or 3-bedroom properties with strong outdoor amenities can capture meaningful income during the May–October season, making this a market where selective deal sourcing matters more than anywhere else."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Paonia

Average revenue by month in Paonia

Paonia's revenue peaks sharply in July at $2,733 and dips to a low of $786 in February—a spread of nearly $2,000 that underscores the market's strong summer seasonality. Investors should expect the June–October window to generate the bulk of annual income, with winter months contributing modestly.

Active Airbnb listings by property size in Paonia

One-bedroom properties dominate supply with 19 of the market's 36 listings, while 2-bedroom units are the scarcest at just 5 listings. The limited 2-bedroom inventory, paired with that size's strongest occupancy rate, could signal an undersupplied niche worth targeting.

Average daily rate (ADR) by property size in Paonia

ADR scales steadily from $85 for studios to $234 for 3-bedroom properties, with each bedroom step adding roughly $50–$60 to the nightly rate. The premium on larger units is meaningful, though investors should weigh it against the higher acquisition and maintenance costs of bigger properties.

Average RevPAN by property size in Paonia

Two-bedroom listings deliver the highest RevPAN at $62, outperforming both 3-bedrooms ($45) and 1-bedrooms ($32), thanks to their combination of solid ADR and the market's best occupancy. Studios trail dramatically at just $6, suggesting they struggle to attract consistent bookings in this market.

Average occupancy rates by property size in Paonia

Two-bedroom properties lead occupancy at 35%, followed by 1-bedrooms at 29%, while studios lag at just 8%—likely reflecting limited demand for the smallest units in a rural getaway market. Three-bedroom listings sit at 19%, suggesting that larger properties command higher nightly rates but fill fewer nights overall.

Average monthly revenue by property size in Paonia

Three-bedroom properties top the revenue chart at $2,713/month, followed by 2-bedrooms at $2,031 and 1-bedrooms at $1,621. Studios earn only $410/month, making them difficult to justify as standalone investments without a very low cost basis.

Average annual revenue by property size in Paonia

Annual revenue ranges from $4,930 for studios to $32,560 for 3-bedroom properties, with 2-bedrooms generating $24,379. Given average home values of $685,312, even the top-earning 3-bedroom configuration delivers a gross yield that requires careful underwriting to ensure positive cash flow.

Most common amenities for Airbnb listings in Paonia

Parking is universal at 100% of listings, and kitchen access (92%), outdoor furniture (72%), and backyards (69%) reflect guest expectations for self-sufficient, outdoor-oriented stays in a rural Colorado setting. Self check-in (69%) and workspace availability (67%) suggest a meaningful share of guests are remote workers or independent travelers who value flexibility and convenience.

Understanding Paonia's ROI Score: 47/100

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

Paonia's ROI score of 47 out of 100 places it in the 'Competitive Opportunity' band, meaning the market has potential but requires selective deal sourcing to generate attractive returns. The below-average revenue-to-price ratio is the primary headwind, while occupancy stability, market growth, and supply/demand balance all rate as average—suggesting the market isn't broken, just priced in a way that demands disciplined underwriting. Investors should pair this data with local regulatory research and focus on property types that punch above the market average, particularly 2-bedroom units with strong outdoor amenities.

Short-Term Rental Regulations in Paonia

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

Permit Requirements

Short-term rental operators in Paonia, Colorado may need to obtain a permit or business license from the town or Delta County before listing their property. Investors should verify current requirements directly with local authorities, as regulations in small Colorado municipalities can change.

Key Restrictions

Common restrictions in Colorado STR markets include occupancy limits, noise ordinances, parking requirements, and potential HOA covenants that may prohibit or limit short-term rentals. Some jurisdictions also impose minimum stay requirements or cap the number of STR permits issued, so reviewing all applicable rules before purchasing is essential.

Tax Obligations

Short-term rental hosts in Colorado are typically subject to state sales tax, local lodging tax, and potentially county-level tourism assessments. Platforms like Airbnb often collect and remit some of these taxes on behalf of hosts, but operators should confirm their full obligations with the Colorado Department of Revenue and local taxing authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Paonia's STR market is likely to remain heavily seasonal, with summer months driving the bulk of revenue and winter dipping to softer levels. The 40% listing growth suggests the market is attracting attention, which could put downward pressure on occupancy rates if demand doesn't keep pace—investors should watch for stabilization in supply before committing. ADR may see modest increases of 1–3% as hosts refine pricing strategies, but annual revenue per listing could remain flat or decline slightly if new supply outpaces demand growth. Targeting 2-bedroom or 3-bedroom properties and focusing on the June–October peak window will be key to capturing the best returns."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Paonia, CO

What is the average Airbnb occupancy rate in Paonia?

The average Airbnb occupancy rate in Paonia is currently 25%, which is below the Colorado state average of 45%. Occupancy varies significantly by property size—2-bedroom listings lead at 35%, while studios lag at just 8%. The strong seasonality in this market means occupancy concentrates heavily during summer months, so annual averages can mask solid peak-season performance.

How much do Airbnb hosts make in Paonia?

Airbnb hosts in Paonia earn an average of $1,688 per month, or approximately $20,259 per year based on trailing 12-month data. Revenue scales considerably with property size: 3-bedroom listings average $2,713/month ($32,560 annually), while studios bring in roughly $410/month. Peak months like July can generate $2,733 on average across all listings, offsetting slower winter months.

Is Paonia a good market for Airbnb investment?

Paonia earns an ROI score of 47 out of 100, categorized as a 'Competitive Opportunity.' The market's below-average revenue-to-price ratio and seasonal demand patterns mean investors need to be strategic about property selection and pricing. Larger properties (2–3 bedrooms) with strong outdoor amenities tend to perform best, and focusing on the May–October peak season is essential for generating meaningful returns. This is a market where careful deal sourcing can make the difference between a profitable investment and an underperforming one.

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

The average daily rate for Airbnb listings in Paonia is $137, significantly lower than the Colorado state average of $529. ADR ranges from $85 for studios to $234 for 3-bedroom properties. This positioning attracts budget-minded travelers and outdoor enthusiasts looking for an affordable Western Slope experience rather than a premium resort stay.

Are short-term rentals legal in Paonia?

Short-term rentals are generally permitted in Paonia, CO, though operators may need to secure local permits or a business license. As with many small Colorado towns, regulations can evolve, so prospective investors should check directly with the Town of Paonia and Delta County for the most current rules regarding permits, zoning, and any applicable restrictions before purchasing a property.

When is peak season for Airbnb in Paonia?

Peak season in Paonia runs from June through October, with July being the strongest month at an average revenue of $2,733 per listing. June ($2,357), August ($2,360), September ($2,256), and October ($2,113) also perform well. The off-season dips sharply—February is the lowest month at just $786 in average revenue. This pronounced seasonality is important to factor into cash flow planning.

How many Airbnbs are there in Paonia?

There are currently 36 active Airbnb listings in Paonia as of April 2026. The supply is dominated by 1-bedroom properties (19 listings), followed by studios and 3-bedrooms (6 each), and 2-bedrooms (5). Notably, the market has seen 40% year-over-year growth in active listings, indicating increasing investor and host interest in this small community.

How is Airbnb revenue calculated in Paonia?

The annual and monthly revenue figures for Paonia 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, since each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, and how actively a listing is managed.

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 Paonia, CO market
• Average daily rates, occupancy rates, and RevPAN tracked over time by property size
• Monthly and annual revenue estimates based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to identify guest expectations

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 historical averages as of the dates noted and may not capture recent market shifts. Local regulations, HOA rules, and tax requirements vary and should be independently verified before investing.