Key Takeaways
- Woodland Park voters approved Ordinance 1469 in December 2023 with nearly 60% support, restricting short-term rentals in residential zones to properties that serve as the owner’s primary residence.
- Non-primary-residence STRs are still permitted, but only in commercially zoned areas of the city.
- The permit process involves two steps: a zoning permit through the Planning Department and a $35 annual business license through the Finance Department.
- Owners must collect and remit both sales tax (3.0%) and lodging tax (5.7%) monthly, totaling 8.7% to the city alone before state and county taxes.
- A lawsuit challenging Ordinance 1469 was dismissed in April 2025, and the city is now fully enforcing the voter-approved restrictions.
What Ordinance 1469 Changed for Woodland Park Short-Term Rentals
Ordinance 1469 fundamentally reshaped how short-term rentals operate in Woodland Park. Approved by voters on December 12, 2023, the ordinance requires that any STR in a residential zone be the owner’s primary residence. Investment properties, second homes, and vacation homes in residential neighborhoods can no longer operate as short-term rentals under the new rules.
Before the vote, Woodland Park had become a popular destination for STR investors. The city sits at 8,465 feet in Teller County, roughly 20 minutes west of Colorado Springs along the Ute Pass corridor. Its proximity to Pikes Peak, Mueller State Park, and the Florissant Fossil Beds made it attractive for vacation rental operators. But residents pushed back against the growing number of non-owner-occupied rentals in their neighborhoods, and the ballot measure passed decisively.
“We are pleased that the Court has dismissed this case and that the City can now move forward with enforcing Ordinance 1469,” said City Manager Aaron Vassalotti, according to the Colorado Springs Gazette. “This ordinance reflects the will of the voters and it is an important tool for managing short-term rentals in our community.”
The ordinance amended Title 18 of the Woodland Park Municipal Code, specifically targeting the zoning districts where STRs are allowed. A companion ordinance, Ordinance 1472 (Series 2024), later amended Title 5 to establish the formal licensing and business regulation framework.
Primary Residence Definition and Proof Requirements
A primary residence under Ordinance 1469 means a fixed, permanent, and principal domicile where you live more than 185 days out of each calendar year. The city requires proof through at least two forms of documentation: a Colorado driver’s license or state identification card, plus one of the following: voter registration at the property address, motor vehicle registration showing the address, or designation of the property as your residence for income tax purposes.
This is not a vague standard. The Planning Department verifies your documentation at the time of permit review. If you cannot demonstrate that the property is your actual, year-round home, your application will not be approved for a residential zone STR.
The 185-day threshold means you need to physically occupy the property for more than half the year. You can still rent it to guests during the remaining 180 days, but the home must be where you live, not just where you collect rental income. Property owners who rent out a guest suite, basement apartment, or portion of their home while living on-site are also eligible under this framework.
Where STRs Are Allowed: Zoning Breakdown
Woodland Park’s zoning rules for short-term rentals split into two categories based on ownership status.
Primary Residence STRs
If you live in the home full-time, you can operate an STR in any single-family residential zone or commercial zone within city limits. This covers the majority of Woodland Park’s housing stock.
Non-Primary-Residence STRs
If you do not live in the property, you can only operate an STR in a commercially zoned area. Woodland Park’s commercial zones are concentrated along Highway 24 and in the downtown business district. The available inventory for non-owner-occupied STRs is limited, which is exactly what voters intended.
The city’s Planning & Building Department maintains zoning maps showing which parcels fall into residential versus commercial designations. Contact them directly to confirm your property’s zoning status before beginning the application process.
The Two-Step Permit Process
Getting licensed for a short-term rental in Woodland Park requires completing two separate approvals through two different city departments.
Step 1: Zoning Permit (Planning Department)
The Planning Department reviews your application to verify that your property qualifies for an STR in its zoning district. During this step, the city confirms your primary residence status (if applying in a residential zone), counts your available parking spaces, and establishes your maximum guest occupancy.
Occupancy limits are calculated at two guests per legal bedroom plus two additional people, with a hard cap of 12 occupants total. The exact number depends on bedroom count, parking availability, and whether the property is a primary residence STR.
Step 2: Business License (Finance Department)
Once your zoning permit is approved, you apply for a Short-Term Rental Business License through the Finance Department. The annual license costs $35. You must provide a copy of your zoning approval to complete this step.
The 2026 Short-Term Rental Application is available on the city’s website. The city began issuing licenses for new units on April 1, 2024, and all new licenses must comply with both Ordinance 1469 and Ordinance 1472.
Parking, Occupancy, and Good Neighbor Requirements
Woodland Park enforces specific operational rules that go beyond the permit itself. These requirements apply to every licensed STR in the city.
Parking: You must provide at least two off-street, on-site parking spaces for guests. Properties with more than two bedrooms need one parking space per bedroom. Overnight street parking for rental guests is not allowed.
Occupancy: Maximum of two people per legal bedroom, plus two additional guests, with a hard cap of 12. Large gatherings such as weddings or parties that exceed the occupancy limit are prohibited.
Local contact person: Every STR must have a designated local contact who can respond to complaints or code violations within 60 minutes. This person must be available 24 hours a day, seven days a week during active rentals and is responsible for snow removal, trash collection, and general property maintenance.
**Good Neighbor Guidelines:** The city requires property owners to post the Good Neighbor Guidelines in a visible location inside each rental property. Guests must be directed to these guidelines as part of the check-in or booking process.
These operational rules exist to protect the residential character of Woodland Park neighborhoods. Violations can result in fines, license suspension, or revocation.
Tax Obligations for Woodland Park STR Operators
Short-term rental operators in Woodland Park owe both sales tax and lodging tax to the city, collected and remitted monthly by the 20th of each month.
| Tax Type | Rate |
| City Sales Tax | 3.00% |
| City Lodging Tax | 5.70% |
| Total City Tax | 8.70% |
On top of the 8.7% city rate, you also owe 2.9% Colorado state sales tax and applicable Teller County taxes. The combined rate pushes past 11% when all layers are included. Understanding how sales tax applies to short-term rentals is critical for pricing your property correctly and maintaining positive cash flow.
Platforms like Airbnb and Vrbo may collect and remit some taxes on your behalf, but the city advises owners to verify exactly which taxes are being handled by the platform and which ones require direct remittance. Call the Finance Department at 719-687-5214 if you are unsure about your specific obligations.
Revenue Potential in Woodland Park
Woodland Park remains a competitive STR market despite the tighter regulations. According to AirROI’s 2026 dataset covering April 2025 through March 2026, the town’s 241 active listings generate the following performance metrics:
| Metric | Value |
| Average Annual Revenue | $37,662 |
| Average Nightly Rate | $292 |
| Occupancy Rate | 46.6% |
| RevPAR | $132 |
| Peak Month | July |
| Slowest Month | February |
Supply grew 16.4% over the reporting period, and nightly rates have risen alongside demand. July is the strongest month for bookings, driven by Pikes Peak tourism, summer hiking, and proximity to attractions like the Rocky Mountain Dinosaur Resource Center and the Colorado Wolf & Wildlife Center.
Cabin-style properties near Colorado Springs tend to perform especially well in the Woodland Park market, where guests expect a mountain getaway experience with rustic character. Properties like the tiny house vacation rental in Woodland Park show how unique listings can command premium rates even in a restricted market.
“Mountain markets near Colorado Springs tend to attract weekend and holiday travelers year-round, with summer and fall driving the bulk of revenue,” says a market analyst at AirROI. “Woodland Park’s proximity to Pikes Peak keeps demand consistent even with regulatory constraints.”
The Legal Challenge: Teller County Short-Term Rental Alliance v. City of Woodland Park
The ordinance faced a legal challenge almost immediately. In May 2024, Mary Sekowski and the Teller County Short-Term Rental Alliance filed suit, arguing that Ordinance 1469 could eliminate more than 150 non-owner-occupied short-term rentals in the city. The plaintiffs sought to nullify the ordinance entirely.
According to KRDO’s coverage, the Teller County District Court denied the lawsuit in March 2025, and the case was fully dismissed in April 2025. The court also rejected the claim that the ordinance’s occupancy limits violated the Colorado Constitution’s right to freely assemble. A prior request for injunctive relief to block enforcement had already been denied.
With the legal challenge resolved, the city is now fully enforcing Ordinance 1469. Existing license holders who were operating non-primary-residence STRs in residential zones received a one-year transition period. That transition has ended, and all operators must now comply.
For property owners navigating these kinds of regulatory shifts, understanding grandfathering rights and what existing hosts need to know about transition periods can help clarify your options.
Timeline of Woodland Park STR Ordinances
| Date | Event |
| June 2023 | Ordinance 1455 proposed by City Council to regulate STRs |
| December 12, 2023 | Ordinance 1469 approved by voters (~60% support) |
| April 1, 2024 | City begins issuing new STR licenses under new rules |
| 2024 | Ordinance 1472 adopted, amending Title 5 business regulations |
| May 2024 | Teller County STR Alliance files lawsuit to nullify Ordinance 1469 |
| March 2025 | Teller County District Court denies the lawsuit |
| April 2025 | Case fully dismissed; enforcement moves forward |
How Professional Management Helps in a Regulated Market
Operating an STR in Woodland Park means staying on top of zoning verification, annual license renewals, monthly tax remittances, occupancy limits, parking rules, and 24/7 local contact requirements. For property owners who do not live near their rental or who prefer to focus on earnings rather than compliance logistics, professional vacation rental management handles the operational burden.
Hoste manages properties across the Pikes Peak region, including Woodland Park, and handles everything from tax collection to around-the-clock guest communication. The right management partner ensures you stay compliant without spending your weekends filing tax returns and responding to neighbor complaints.
Want to know what your Woodland Park property could earn? Get a free earnings estimate and see how your property stacks up against the market.
Frequently Asked Questions
Can I operate a short-term rental in Woodland Park if I do not live there?
Only if your property is in a commercially zoned area. Ordinance 1469 restricts STRs in residential zones to properties that are the owner’s primary residence, defined as living there at least 185 days per year with documented proof.
What documents do I need to prove primary residence?
You need at least two forms of proof: a Colorado driver’s license or state ID showing the property address, plus one of the following: voter registration at the address, motor vehicle registration, or designation of the address as your residence for income tax purposes.
How much does a Woodland Park STR license cost?
The annual business license fee is $35. There is no separate zoning permit fee listed by the city. However, you must complete the zoning review through the Planning Department before you can apply for the business license.
What is the maximum occupancy for a Woodland Park STR?
Two guests per legal bedroom plus two additional people, with a hard cap of 12 occupants. The Planning Department sets the exact limit during your permit review based on bedroom count, parking spaces, and property type.
How much tax do I owe as a Woodland Park STR host?
The city collects 3.0% sales tax and 5.7% lodging tax, totaling 8.7%. You also owe 2.9% Colorado state sales tax and applicable Teller County taxes. Combined rates exceed 11%. Taxes must be remitted by the 20th of every month.
Was the Woodland Park STR ordinance challenged in court?
Yes. The Teller County Short-Term Rental Alliance filed suit in May 2024 to nullify Ordinance 1469. The Teller County District Court denied the lawsuit in March 2025 and dismissed the case entirely in April 2025. The ordinance is now fully enforceable.
Do Airbnb and Vrbo collect taxes on my behalf in Woodland Park?
Platforms may collect and remit some taxes automatically, but the city advises all operators to verify directly with the Finance Department (719-687-5214) which taxes are being handled by the platform and which require manual remittance.
What happens if I violate the Woodland Park STR rules?
Violations of occupancy, parking, noise, or licensing requirements can result in fines, license suspension, or full revocation. Your designated local contact person must respond to complaints within 60 minutes during any active rental period.
Looking for expert help managing your Woodland Park property?
Get your free earnings estimate from Hoste and find out how professional management can keep you compliant while maximizing your returns.