Pitkin County has some of the tightest short-term rental (STR) rules in Colorado. On August 18, county staff recommended loosening them. If you own, or are thinking about buying, a home outside Aspen's city limits, this proposal could matter. So does how you finance the purchase while the rules are undecided.
Key takeaways
- County staff recommended dropping the requirement for a 2017–2022 rental history to get an STR license in unincorporated Pitkin County.
- Unincorporated Pitkin has 73 licensed STRs. Aspen and Snowmass Village have more than 2,300.
- Commissioners took no formal action and raised concerns about removing the history requirement and about a proposed lodging tax.
- Until rules are adopted, plan the purchase so it works without STR income. Then pick the loan type that matches how the home will actually be used.
What was proposed
Economic & Planning Systems presented a short-term rental impact study to the Board of County Commissioners at an August 18 work session. The Aspen Times and Aspen Public Radio reported these recommendations:
- Remove the 2017–2022 rental history requirement. Right now, only properties that rented during that window can get a county license. That effectively freezes the number of STRs.
- Restructure licensing into categories with geographic caps, while keeping restrictions in rural and remote areas.
- Add an exemption for major local events such as the Aspen Ideas Festival and the Music Festival.
- Create a lodging tax to fund county housing programs.
- Leave Redstone's separate rules in place. Those include a 180-night annual maximum and a two-night minimum stay.
Andrew Knudtsen of Economic & Planning Systems told commissioners, "There is a tradeoff to having this 2017 to 2022 requirement." Commissioner Jeffrey Woodruff noted, "There's something missing in a community where 40% of the beds are unused." According to Aspen Public Radio, commissioners were open to the event exemption but pushed back on the lodging tax and raised concerns about removing the rental-history requirement.
How small the county's STR market is
The numbers explain why the study happened. The county counted 73 active licensed STRs in unincorporated Pitkin County. Aspen Public Radio compared that with more than 2,300 in Aspen and Snowmass Village and about 4,200 in Breckenridge. The study put annual STR bookings in the county at $14.3 million. Researcher Karlyn Russell-Carlson reported that "51% of people reported that they didn't notice STR activity in the county."
Aspen Journalism's July analysis tracked the decline:
| Jurisdiction | Earlier | Spring 2026 |
|---|---|---|
| City of Aspen STR permits | 790 (2023) | 741 (April 3, 2026) |
| Unincorporated Pitkin County permits | 111 (April 2023) | 79 (April 21, 2026) |
| Unincorporated Pitkin, before regulation | 206 | — |
Aspen's decline is deliberate. The city's STR support specialist told Aspen Journalism, "That decline was intentional." Costs have also risen. Aspen charges a 10% excise tax on classic STR permits and 5% on owner-occupied and lodging-exempt permits. The county's annual fees are based on property value and range from 0.05% to 0.07%. A $4 million home pays about $2,000 to $2,800 a year.
Why this matters for financing
Buyers in this area often assume rental income will help cover the cost of owning. How realistic that is depends on the license, and the loan you choose has to match how the home will actually be used.
Second-home loans: occasional rental, no qualifying income
Under Fannie Mae's occupancy rules, a second home must be occupied by you for part of the year and stay under your exclusive control. It cannot be subject to an agreement that gives a management firm control over occupancy. You can rent it occasionally, but rental income cannot be used to qualify. Pitkin County's 2026 conforming limit is $1,209,750, and a conforming second home needs as little as 10% down. Most Aspen-area purchases will be jumbo, where requirements vary by lender.
Investment and DSCR loans: income counts, and so do the rules
If the plan is a real rental operation, an investment-property loan or a DSCR loan fits better. Conventional investment loans typically require 15%–25% down. DSCR lenders typically look for 20%–25% down and a debt-service coverage ratio around 1.0 or higher, and requirements vary by lender. The catch is that a DSCR loan only works if the lender accepts the rent estimate. An STR estimate on a property that cannot get a license may not be accepted.
Buy the license, not the proposal
For a property that already holds an active license, the income case is based on current rules. For one that doesn't, the rental plan depends on a proposal that commissioners have not adopted and have questioned. My advice is to size the purchase and the loan to work without STR income. Treat any future license as upside.
Questions to answer before you write an offer
- Is the property in the City of Aspen, Snowmass Village, Basalt or unincorporated Pitkin County? Each has its own rules.
- Does it hold a current license, and what happens to that license when the property sells?
- Is there an HOA or metro district rule that restricts rentals regardless of what the county allows?
- Does the purchase work at a second-home down payment with no rental income? If not, which investment loan fits?
Our second home vs. investment property guide and Colorado short-term rental loan page walk through each path.
What this means for you
Pitkin County is openly reconsidering rules that have kept its STR count far below its neighbors'. That is worth following, but it is not yet a basis for an offer. I have financed Roaring Fork Valley homes for more than 30 years. The purchases that hold up are the ones that work under the rules in effect at closing. For local lending detail, see our Aspen mortgage page.
If you are weighing an Aspen-area purchase, start a pre-approval with Cedar Home Loans. We will compare second-home, jumbo and investment options side by side. Rates change daily, and terms depend on your file.
Sources
- The Aspen Times — Pitkin County short-term rental regulations could see a change (August 20, 2026)
- Aspen Public Radio — Pitkin County's short-term rentals lag behind neighbors. Is that a problem? (August 19, 2026)
- Aspen Journalism — Short-term rental market continues to shrink in Aspen and Pitkin County (July 18, 2026)
- Fannie Mae Selling Guide — B2-1.1-01, Occupancy Types
