Key Takeaways

• Short-term rentals are explicitly allowed in Pueblo, Colorado. The city’s 2018 STR ordinance defines them as residential properties rented for fewer than 30 days and permits them across all residential and agricultural zoning districts.
• Operators need two licenses from the City Sales Tax Office: a Sales Tax License and an STR Lodging License. Zoning verification is completed through the Planning Department separately.
• Pueblo imposes a 3.7% city sales tax plus a 4.3% lodger’s tax, totaling 8.0% to the city before state taxes bring the combined rate above 10%.
• Safety requirements are strict and non-negotiable. Every licensed STR must have a working smoke detector, carbon monoxide detector, and fire extinguisher during each guest occupancy.
• Pueblo’s 487 active listings average $133 per night with 58% occupancy, and revenue per listing jumped 43.1% year-over-year, making it one of the fastest-growing STR markets in southern Colorado.

Are Short-Term Rentals Allowed in Pueblo?

Yes. Pueblo explicitly allows short-term rentals under a 2018 ordinance that defines STRs as “residential properties that are rented to a visitor for fewer than 30 days.” The city permits STRs in all residential and agricultural zone districts, plus business districts for residences established prior to 1968.

Unlike many Colorado communities that have restricted or capped short-term rentals, Pueblo has taken the opposite approach. The city currently has no cap on the number of STR licenses it will issue. According to city data, less than 1% of Pueblo residences operate as short-term rentals, so there has been little political pressure to restrict them.

Pueblo sits roughly 100 miles south of Denver and 45 miles south of Colorado Springs at the meeting point of the Arkansas River and Fountain Creek. With a population of approximately 111,776, it is Colorado’s ninth-largest city. The combination of Lake Pueblo State Park, the Historic Arkansas Riverwalk, proximity to Royal Gorge, and access to Great Sand Dunes National Park draws steady tourism throughout the year. That tourist traffic, combined with affordable property prices relative to the Front Range, has made Pueblo increasingly attractive for STR investment.

“Pueblo’s affordability compared to Colorado Springs and Denver, combined with its proximity to some of Colorado’s best outdoor recreation, creates a sweet spot for vacation rental investment,” says a market analyst at Rabbu. “Revenue per listing is growing faster here than in most Colorado markets.”

The Licensing Process: Two Licenses, Two Steps

Operating a short-term rental in Pueblo requires two separate licenses from the City Sales Tax Office, plus zoning verification from the Planning Department.

License 1: Sales Tax License

Every business operating in Pueblo must hold a Sales Tax License. For STR operators, this license authorizes you to collect and remit the city’s 3.7% sales tax on lodging revenue. Apply through the City Sales Tax Office at 100 N Market St., Pueblo, CO 81003. The base business license fee is $50.

License 2: STR Lodging License

In addition to the standard Sales Tax License, short-term rental operators must obtain a specific STR Lodging License, also issued by the Sales Tax Office. This license covers the 4.3% lodger’s tax and confirms your property as a registered short-term rental.

The application requires a completed form from the City License Officer, self-certification under penalty of perjury, proof of legal U.S. residency, proof of possession of the licensed premises, and a certification checklist addressing fire safety, parking, and emergency procedures.

Zoning Verification

Before your licenses are finalized, the Planning and Community Development Department verifies that your property sits in an eligible zone district. STRs are permitted in all residential zones (R-1 through R-8 and RCN), agricultural zones, and in business districts for residences that predate 1968. Contact the Planning Department at 719-553-2905 for zoning questions.

Licenses are non-transferable, require annual renewal, and can be revoked under the Municipal Code if you fail to maintain compliance.

Tax Obligations for Pueblo STR Operators

Pueblo’s tax structure for short-term rental operators includes both city and state layers. Here is the complete breakdown:

Tax Type	Rate	Authority
City Sales Tax	3.70%	City of Pueblo
City Lodger’s Tax	4.30%	City of Pueblo
Pueblo County Sales Tax	1.00%	Pueblo County
Colorado State Sales Tax	2.90%	State
Combined Minimum Rate	~11.90%	All levels

The 4.3% lodger’s tax applies specifically to all sales of lodging, including short-term rentals. This is separate from and in addition to the city sales tax.

Airbnb may collect and remit some taxes on your behalf, but Pueblo requires operators to verify exactly which taxes the platform handles and which require direct remittance. For hosts managing multiple properties or dealing with complex sales tax obligations for short-term rentals, working with a tax professional or a property management company simplifies compliance.

File taxes through the City Sales Tax Office. For questions, call 719-553-2300.

Safety Requirements: Non-Negotiable

Pueblo takes safety compliance seriously. Operating an STR without the required safety equipment is classified as an unlawful act under the city ordinance and can result in license revocation.

Every licensed STR must have the following equipment installed and functional during each guest occupancy:

Smoke detectors: At least one working smoke detector on the licensed premises.

Carbon monoxide detectors: Required on the premises during every guest stay.

Fire extinguisher: A functional fire extinguisher must be accessible to guests at all times.

Beyond equipment, operators must provide printed guest information that includes the licensee’s contact information, local responsible party contact, emergency contacts, parking restrictions, noise and amplified sound restrictions, trash collection schedule, water usage information, and fire evacuation routes.

Maintaining proper safety equipment and adequate insurance for short-term rentals protects both your guests and your investment from liability exposure.

Advertising Rules: License Number Required

Pueblo requires that your STR license number be clearly displayed on all advertisements. This applies to every listing platform, personal website, social media post, or print advertisement where you promote your rental property.

Advertising without a valid license number displayed is a violation subject to the same enforcement procedures that apply to hotels and motels. The city can revoke your license for non-compliance.

This requirement also means you need to secure your licenses before creating any listings on Airbnb, Vrbo, or other platforms. Do not publish a listing without your license number visible.

City of Pueblo vs. Pueblo County: Key Differences

Properties inside Pueblo city limits follow the city’s STR ordinance described above. Properties in unincorporated Pueblo County, including the Pueblo West community, fall under separate Pueblo County regulations administered by the Pueblo County Planning and Development Department.

County regulations are governed by Chapter 17.120 of the Pueblo County Zoning Resolution. Zoning laws apply primarily to residential areas, and properties must comply with county-level planning and development requirements. Rural cabins and residential homes are common STR property types in the county.

If your property is in Pueblo West or another unincorporated area, contact the Pueblo County Planning Division at the county offices before assuming city rules apply to your situation.

Revenue Potential in Pueblo

Pueblo’s STR market is growing fast. According to AirDNA’s 2026 dataset, the city now has 487 active listings with notable year-over-year improvements:

Metric	Value	Year-over-Year Change
Active Listings	487	Growing
Average Nightly Rate	$133	-5.2%
Occupancy Rate	58%	+18.6%
RevPAR	$71	Rising
Avg Revenue per Listing	$13,200/yr	+43.1%

The occupancy surge of 18.6% is the standout figure. While nightly rates dipped slightly, the significant increase in booked nights more than compensated, driving revenue per listing up 43.1% year-over-year. STRProfitMap data shows median annual earnings at $21,828 with top performers reaching $30,322 or more.

Pueblo’s market saturation score sits at 6 out of 12 months showing year-over-year revenue declines, indicating moderate saturation. Properties near Lake Pueblo State Park, the Historic Arkansas Riverwalk, and along the I-25 corridor tend to perform strongest.

The combination of lower property acquisition costs compared to mountain town STR markets and rising occupancy rates makes Pueblo attractive for investors looking for strong cash-on-cash returns rather than high nightly rates.

What Makes Pueblo Different from Other Colorado STR Markets

Pueblo’s regulatory environment is notably more relaxed than most Colorado communities. Here is how it compares:

Feature	Pueblo	Colorado Springs	Woodland Park	Castle Rock
STR-Specific License	Yes (Lodging)	Yes	Yes	No (business only)
Primary Residence Required	No	No	Yes (residential)	No
Cap on STR Licenses	No	No	N/A	No
Safety Equipment Mandated	Yes	Yes	No	No
License # on Ads	Required	Required	N/A	N/A
Combined Tax Rate	~11.9%	~12%	~11%	~14.1%

The key advantages for Pueblo: no primary residence requirement, no cap on licenses, and STRs allowed in virtually all zoning districts. The main compliance requirement that sets Pueblo apart is the mandatory display of your license number on all advertising, which most other communities in the region do not enforce as strictly.

How Professional Management Simplifies Pueblo STR Operations

Between dual licensing requirements, monthly tax filing, safety equipment maintenance, guest information packets, and advertising compliance, operating a Pueblo STR involves more administrative overhead than the typical investor expects.

For property owners who want the returns without the paperwork, professional vacation rental management handles licensing, tax remittance, safety compliance, and 24/7 guest communication so you collect income while staying fully compliant.

Want to see what your Pueblo property could earn? Get a free earnings estimate and compare your property against the local market.

Frequently Asked Questions

Do I need a license to operate an Airbnb in Pueblo?

Yes. You need two licenses from the City Sales Tax Office: a Sales Tax License and an STR Lodging License. You also need zoning verification from the Planning and Community Development Department. The base business license fee is $50, and licenses must be renewed annually.

What safety equipment is required for Pueblo short-term rentals?

Every licensed STR must have a working smoke detector, carbon monoxide detector, and fire extinguisher on the premises during each guest occupancy. Operating without this equipment is classified as an unlawful act and can result in license revocation.

How much tax do I owe as a Pueblo STR host?

The combined minimum rate is approximately 11.9%, which includes 3.7% city sales tax, 4.3% city lodger’s tax, 1.0% Pueblo County sales tax, and 2.9% Colorado state sales tax. Additional special district taxes may apply.

Can I operate an STR in Pueblo if it is not my primary residence?

Yes. Pueblo does not impose a primary residence requirement. Both owner-occupied and investment properties can be licensed as short-term rentals, as long as they are in eligible zoning districts.

Is there a cap on the number of STR licenses in Pueblo?

No. The city currently does not cap the number of STR licenses. Less than 1% of Pueblo residences operate as short-term rentals.

Do I need to display my license number on my Airbnb listing?

Yes. Pueblo requires that your STR license number be clearly displayed on all advertisements, including platform listings, personal websites, and social media. Advertising without a valid license number is a violation.

What zone districts allow short-term rentals in Pueblo?

STRs are permitted in all residential zones (R-1 through R-8 and RCN), agricultural zones, and business districts for residences established prior to 1968. Contact the Planning Department at 719-553-2905 to verify your property’s zoning.

How much can I earn with an Airbnb in Pueblo?

AirDNA data shows Pueblo’s 487 listings average $133 per night with 58% occupancy and a RevPAR of $71. Median annual revenue is $21,828 according to STRProfitMap, with top performers earning over $30,322 per year. Revenue per listing grew 43.1% year-over-year.

Ready to start earning from your Pueblo property? Get your free earnings estimate from Hoste and discover how professional management keeps you compliant while maximizing your returns.