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, CO Short-Term Rental Laws & Regulations

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Verified: Jan 30, 2026

3 Official Sources

Summary

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

⛔

Strict

Score: 48 (moderate)

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

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

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

$750

Processing Time

30-60 days

7 Things Hosts Often Miss

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

Regulation Details

Eligibility(10)

•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.

Requirements(20)

•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 Process(12)

•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 & Costs(1)

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

Taxes(3)

•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 & Restrictions(9)

•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 Requirements(1)

•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.

Penalties(3)

•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.

Exemptions(3)

•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).

Disclaimer

Regulatory information is AI-researched 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.

Other Colorado Markets

Summit County

Colorado

Moderate

Unincorporated Summit County has strictly regulated STRs via a two-tier overlay system: 'Resort' zones have unlimited permits, while 'Neighborhood' zones are subject to strict precinct caps and a 35-night annual rental limit. All hosts must obtain an annual permit and collect a 2% STR Excise Tax in addition to standard sales taxes.

Permit requiredNight limits

0.1% total tax

Eagle County

Colorado

Moderate

Short-term rentals in unincorporated Eagle County require an annual license and are subject to a 2% County Lodging Tax. The regulations, established in 2022, focus on parking, life safety, and ensuring a local contact is available to respond to complaints within 60 minutes.

Permit required

0.0% total tax

La Plata County

Colorado

Moderate

Short-term rentals in unincorporated La Plata County require a Vacation Rental Permit and must comply with Chapter 90, Article IV of the Land Use Code. Permits are tied to specific occupancy limits based on septic capacity and require wildfire mitigation and bear-proof trash containment.

Permit required

0.0% total tax

Aspen

Colorado

Strict

The City of Aspen requires all short-term rentals to obtain an annual permit categorized into three types: Classic, Lodge, or Investment. Stricter regulations and a significant STR excise tax (5-10%) were implemented following Measure 2A in 2022.

Permit requiredNight limits

0.2% total tax

Ouray

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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Regulation Details

Eligibility(10)

Requirements(20)

Application Process(12)

Fees & Costs(1)

Taxes(3)

Limits & Restrictions(9)

Safety Requirements(1)

Penalties(3)

Exemptions(3)

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Frequently Asked Questions

Related Content

Other Colorado Markets

Summit County

Eagle County

La Plata County

Aspen

Ouray

Gold Standard Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

7 Things Hosts Often Miss

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?

Related Content

Other Colorado Markets

Summit County

Eagle County

La Plata County

Aspen