Denver Short-Term Rental Market Insights: Where to Maximize Your Airbnb Revenue in 2025

The Mile High City continues to be a prime destination for short-term rental (STR) investors. With strong year-over-year growth, increasing demand, and a diverse range of travelers, Denver remains one of the top markets to own and operate an Airbnb. Whether you’re a first-time host or a seasoned property investor, knowing where and how to optimize your listing can make all the difference.

Denver Metro by the Numbers: What You Can Expect to Earn

Denver’s STR market continues to show solid performance:

• Average Annual Revenue: $39.7K (+5% YoY)
• Average Daily Rate (ADR): $208.60 (+4%)
• Occupancy Rate: 65%
• Revenue per Available Room (RevPAR): $134.76

Property type also impacts potential income:

• Entire Place: $44K/year
• House: $41.8K/year
• Apartment: $34.8K/year

These numbers confirm what local managers already know—Denver’s demand remains healthy, especially for well-located and well-maintained properties.

Top Denver Neighborhoods for STR Investment

Some neighborhoods significantly outperform the city average. Here’s where homeowners are seeing the strongest returns:

LoDo (Lower Downtown)

• Annual Revenue: $58.4K
• Occupancy: 65%
• ADR: $241.40
• Insight: Denver’s entertainment and nightlife hub, drawing consistent tourist traffic.

Highland

• Annual Revenue: $56.9K
• Occupancy: 68%
• ADR: $232.40
• Insight: A trendy neighborhood with walkable amenities, great for both business and leisure travelers.

Wheat Ridge

• Annual Revenue: $55.4K
• Occupancy: 67%
• ADR: $236.30
• Insight: A growing area offering excellent value for both investors and guests.

Occupancy Outlook: Next 30 Days

Understanding short-term demand helps owners plan strategically, especially as we enter shoulder and summer seasons. Here’s a snapshot of booking activity and occupancy trends over the next month (as of May 2025):

Highest Booking Days:

• May 9: 459 bookings in the last 7 days / 1610 in the last 30 days
• May 10: 434 bookings in the last 7 days / 1553 in the last 30 days
• May 24: 389 bookings in the last 7 days / 1479 in the last 30 days

Holidays & Weekends Matter: Memorial Day weekend is seeing a noticeable surge, with bookings spiking May 23–26. Planning promotions or adjusting minimum stays during these high-demand periods can maximize occupancy.

Midweek Lulls: Days like May 20–22 and late May to early June (May 27–June 3) show fewer bookings, offering an opportunity for last-minute deals or targeted pricing adjustments.

Pro Tip: Monitor upcoming gaps and apply strategic discounts or dynamic pricing. At SkyRun Denver, our team works directly with homeowners to review occupancy forecasts and implement flexible strategies—whether that means adjusting rates before holidays, targeting shoulder season weekends, or launching last-minute booking campaigns. By proactively planning with real-time data, we’ve helped our clients fill calendar gaps and maximize revenue, even during softer demand periods.

What Affects Your Earnings: Key Factors to Consider

Several listing characteristics influence your revenue potential:

• Rental Size: 1-bedroom units dominate (43%), followed by 2-bedrooms (25%). Small to mid-size homes perform best in urban zones.
• Cancellation Policy: Nearly half of all listings use custom or “Other” policies. A balance between guest flexibility and owner protection is key.
• Minimum Stay: Listings with 1–2 night minimums make up over 50%, but 30+ night stays are also viable (16.8%) for seasonal guests, corporate travelers, or travel nurses.

Pro Tip: Flexibility can improve occupancy—but a strong operational team is essential to handle the turnover.

How Smart Pricing and Local Management Make a Difference

Using dynamic pricing tools can help ensure you’re not leaving money on the table during peak seasons—or overpricing during slower periods. But tools only go so far.

That’s where a local, data-driven property manager steps in. We:

• Optimize nightly rates based on market trends
• Respond to guest inquiries within minutes
• Handle professional cleaning and on-site maintenance
• Manage listings across top platforms (Airbnb, VRBO, Marriott Homes & Villas, etc.)

All of this adds up to higher occupancy, better reviews, and ultimately more revenue.

Why Choose a Local Property Manager in Denver?

We don’t just manage properties—we maximize potential. At SkyRun Denver, we offer local expertise backed by national resources. Our Denver-based team:

• Knows neighborhood-specific demand trends across Cherry Creek, Highland, LoDo, and beyond
• Works with vetted local vendors to keep your property in top shape
• Provides 24/7 guest and owner support
• Offers full transparency and personalized service with no hidden fees

Whether you’re new to the short-term rental game or looking to level up your results, SkyRun Denver is your trusted partner.

Ready to Maximize Your Denver Rental? Let’s Talk

Looking to buy a property? Already have one listed but not seeing results? We provide free revenue projections and personalized consultations to help you unlock your rental’s full potential.

Let’s talk about what your Denver property could earn!

Sebastien Guite

Owner of SkyRun Vacation Rentals Denver

720-728-1997

denver@skyrun.com