Do I need a permit for short-term rentals in Ouray?

**Yes**, Ouray requires a Short-Term Rental (STR) License to operate legally. You need to apply for this permit through the city, and it costs $750 annually. Note that many residential zones are capped at 15%, so new applicants may be waitlisted.

What is the TOT tax rate in Ouray?

**4% TOT** is the current transient occupancy tax rate for short-term rentals in Ouray. Hosts are responsible for collecting this tax from guests and remitting it to the city. Airbnb and VRBO may automatically collect a portion of this tax in certain jurisdictions.

Are short-term rentals allowed in Ouray?

**Yes**, short-term rentals are allowed in Ouray, but with restrictions. Many residential zones have reached their 15% cap, meaning new applicants may face a lottery or waitlist. Commercial zones are exempt from these caps, so consider that when buying.

How much does an STR permit cost in Ouray?

**$750** is the annual cost for a Short-Term Rental (STR) permit in Ouray. You need to renew this license each year to continue operating legally. Note that this fee is subject to change, so always verify the current amount with the city.

Can renters host on Airbnb in Ouray?

**No**, tenants cannot host on Airbnb or other short-term rental platforms in Ouray. Only property owners are allowed to apply for and obtain an STR license. Renters must have explicit permission from the property owner and the city to host.

Ouray

Strict

ColoradoUpdated Apr 18, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Short-term rentals in the City of Ouray are strictly regulated and subject to neighborhood-specific caps in residential zones. As of 2024, many residential zones have reached their 15% cap, requiring new applicants to join a lottery/waitlist, though commercial zones remain exempt from these caps.

Restriction level

Severity 48

Classification

Strict

Severity

Why this classification

High permit fee: $750
Limited to 1 property per owner
Tenants cannot host
Permit required
Reporting required
No night cap
No primary residence requirement

In plain English

What this means for you

To host an Airbnb in the City of Ouray, you must first secure a license, which can be difficult because the city limits the number of rentals allowed in residential areas. If the cap is full, you'll have to join a waitlist. You need to pay an annual $750 fee, pass a safety inspection, and ensure you have off-street parking for your guests. Once licensed, you are responsible for collecting and paying a 4% lodging tax to the city on top of state sales taxes.

At a glance

Key numbers

Permit requiredYes

Night limitNone

Primary residenceNot required

Total tax rate0.1%

Permit fee$750

Processing time30-60 days

7 things hosts often miss

Common compliance gaps

1Most residential areas have a 15% cap on the number of STR licenses issued.
2Accessory Dwelling Units (ADUs) built after 2021 cannot be used as STRs.
3Owners are limited to only ONE STR license within the city limits.
4You must have a designated local representative who can respond to complaints 24/7 within 60 minutes.
5Off-street parking is mandatory and must be shown on your submitted parking plan.
6The 4% lodging tax is NOT always collected by Airbnb/VRBO; you must file city tax forms manually.
7Failure to renew your license by the deadline results in immediate forfeiture, and you may lose your spot to the waitlist.

Regulation details

Sourced from official code

Eligibility10 rules

Ouray allows STRs in the following property types: Single-family, Multi-family, Condos.
Ouray does NOT require the property to be a primary residence. Investment properties are allowed.
Ouray: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Ouray limits hosts to a maximum of 1 STR properties per owner.

Requirements20 rules

Ouray STR warning: Owners are limited to only ONE STR license within the city limits.
Ouray, CO: You must display your permit/registration number on your listing. Platforms may remove non-compliant listings.
Ouray, CO has different permit classes: Residential (Standard) or Commercial (Exempt from Caps). Hosted vs. unhosted rentals have different requirements.

Application process12 rules

Ouray, CO extended permit requirement: Application fee for new licenses may differ from annual renewal fees.
Ouray STR permit - Step 2: Obtain State and Local Sales Tax Licenses. Register with the Colorado Department of Revenue and the City of Ouray Finance Department for tax collection. Required documents: State Sales Tax License. Time: 2 weeks. Cost: 50.

Fees & costs1 rule

Ouray charges a registration fee of $750 (annual).

Taxes3 rules

Ouray charges a Lodging Tax of 4%. This applies to stays under 30 days. Hosts are responsible for collecting and remitting this tax. Note: Hosts are generally responsible for filing monthly/quarterly city tax returns directly.
Colorado has a state sales tax of 2.9% that applies to STR rentals.
Ouray: The 4% lodging tax is NOT always collected by Airbnb/VRBO; you must file city tax forms manually.

Limits & restrictions9 rules

Ouray: Most residential areas have a 15% cap on the number of STR licenses issued.
Ouray occupancy calculation: 2 persons per bedroom plus 2 additional. Count your bedrooms to determine your max guest limit.
Ouray, CO occupancy calculation: 2 persons per bedroom plus 2 additional. Count your bedrooms to determine your max guest limit.

Safety requirements1 rule

Ouray requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Egress windows in all sleeping rooms, Posted emergency evacuation map, Snow removal plan.

Penalties3 rules

Ouray enforces the following penalties for STR violations: First offense: $500 fine. Second offense: $1,000 fine and potential suspension. Third offense: License revocation. Daily fine: $500. Maximum fine: Per court discretion. Permit may be revoked for violations.
Ouray, CO: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions3 rules

Ouray, CO: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Ouray: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Researched & verified by Learn STR at GoStudioM

Ouray

Strict

ColoradoUpdated Apr 18, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Restriction level

Severity 48

Classification

Strict

Severity

Why this classification

High permit fee: $750
Limited to 1 property per owner
Tenants cannot host
Permit required
Reporting required
No night cap
No primary residence requirement

In plain English

What this means for you

At a glance

Key numbers

Permit requiredYes

Night limitNone

Primary residenceNot required

Total tax rate0.1%

Permit fee$750

Processing time30-60 days

7 things hosts often miss

Common compliance gaps

1Most residential areas have a 15% cap on the number of STR licenses issued.
2Accessory Dwelling Units (ADUs) built after 2021 cannot be used as STRs.
3Owners are limited to only ONE STR license within the city limits.
4You must have a designated local representative who can respond to complaints 24/7 within 60 minutes.
5Off-street parking is mandatory and must be shown on your submitted parking plan.
6The 4% lodging tax is NOT always collected by Airbnb/VRBO; you must file city tax forms manually.
7Failure to renew your license by the deadline results in immediate forfeiture, and you may lose your spot to the waitlist.

Regulation details

Sourced from official code

Eligibility10 rules

Ouray allows STRs in the following property types: Single-family, Multi-family, Condos.
Ouray does NOT require the property to be a primary residence. Investment properties are allowed.
Ouray: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Ouray limits hosts to a maximum of 1 STR properties per owner.

Requirements20 rules

Ouray STR warning: Owners are limited to only ONE STR license within the city limits.
Ouray, CO: You must display your permit/registration number on your listing. Platforms may remove non-compliant listings.
Ouray, CO has different permit classes: Residential (Standard) or Commercial (Exempt from Caps). Hosted vs. unhosted rentals have different requirements.

Application process12 rules

Ouray, CO extended permit requirement: Application fee for new licenses may differ from annual renewal fees.
Ouray STR permit - Step 2: Obtain State and Local Sales Tax Licenses. Register with the Colorado Department of Revenue and the City of Ouray Finance Department for tax collection. Required documents: State Sales Tax License. Time: 2 weeks. Cost: 50.

Fees & costs1 rule

Ouray charges a registration fee of $750 (annual).

Taxes3 rules

Ouray charges a Lodging Tax of 4%. This applies to stays under 30 days. Hosts are responsible for collecting and remitting this tax. Note: Hosts are generally responsible for filing monthly/quarterly city tax returns directly.
Colorado has a state sales tax of 2.9% that applies to STR rentals.
Ouray: The 4% lodging tax is NOT always collected by Airbnb/VRBO; you must file city tax forms manually.

Limits & restrictions9 rules

Ouray: Most residential areas have a 15% cap on the number of STR licenses issued.
Ouray occupancy calculation: 2 persons per bedroom plus 2 additional. Count your bedrooms to determine your max guest limit.
Ouray, CO occupancy calculation: 2 persons per bedroom plus 2 additional. Count your bedrooms to determine your max guest limit.

Safety requirements1 rule

Ouray requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Egress windows in all sleeping rooms, Posted emergency evacuation map, Snow removal plan.

Penalties3 rules

Ouray enforces the following penalties for STR violations: First offense: $500 fine. Second offense: $1,000 fine and potential suspension. Third offense: License revocation. Daily fine: $500. Maximum fine: Per court discretion. Permit may be revoked for violations.
Ouray, CO: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.

Exemptions3 rules

Ouray, CO: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Ouray: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).

Frequently asked questions

5 answered

Disclaimer

Researched & verified by Learn STR at GoStudioM

Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Ouray?

2What is the TOT tax rate in Ouray?

3Are short-term rentals allowed in Ouray?

4How much does an STR permit cost in Ouray?

5Can renters host on Airbnb in Ouray?

Disclaimer

Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Ouray?

2What is the TOT tax rate in Ouray?

3Are short-term rentals allowed in Ouray?

4How much does an STR permit cost in Ouray?

5Can renters host on Airbnb in Ouray?

Disclaimer