Short-Term Rental Regulations in 2026: A Guide for Crested Butte Investors

If you are buying a home in the Gunnison Valley with the intent to offset costs through short-term rentals (STR), you are navigating a minefield.

The days of buying a chalet, listing it on Airbnb, and forgetting about it are over. As of 2026, regulations in the Gunnison Valley have fragmented into three distinct "jurisdictions"—each with drastically different rules for investors.

A property on one side of the street might be a cash-flow machine, while a nearly identical home across the street is legally prohibited from hosting a single guest.

This guide breaks down the 2026 regulatory landscape to help you buy with eyes wide open.

Zone 1: The Town of Crested Butte (The "Restricted" Zone)

Best for: Lifestyle buyers who want to live downtown part-time. Worst for: Pure ROI investors.

The Town of Crested Butte (the historic downtown grid) has the strictest regulations in the valley. The town operates under a two-tier licensing system:

1. The "Unlimited" License (The Golden Ticket)

• What it is: Allows you to rent the property for an unlimited number of nights per year.
• The Catch: These licenses are capped at 30% of free-market units (approx. 198 total). As of January 2026, this cap is met.
• The "Deal Killer" for Buyers: Unlimited licenses are non-transferable upon sale. If you buy a house that currently has an Airbnb license, that license dies at closing. You must enter a lottery to get a new one, with odds currently hovering near zero.
• Block Face Limit: Even if a license becomes available, no more than two vacation rentals are allowed per block face (one side of the street on one block).
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2. The "Primary Residence" License

• What it is: A license for locals or second-home owners who spend significant time in the valley.
• The Rules: You must reside in the home for at least 6 months of the year.
• The Limit: You are capped at 90 rental nights per year.
• Availability: Unlimited. There is no cap on these licenses.

Nikki’s Insight: If you see a downtown home marketed as an "income generator," verify the license type immediately. Unless you plan to live there half the year, the income potential is likely capped at 90 nights.

Zone 2: Mt. Crested Butte (The "Opportunity" Zone)

Best for: Investors seeking maximum yield and flexibility.

If your primary goal is rental revenue, look up the hill. The Town of Mt. Crested Butte (the municipality surrounding the ski resort base) remains the most investor-friendly jurisdiction.

• License Caps: None. Currently, there is no limit on the number of STR licenses issued.
• Zoning: Allowed in almost all residential zones.
• Transferability: While you still technically apply for a new license upon purchase, it is an administrative process, not a lottery.
• The Trade-off: Higher taxes. Expect a total lodging tax burden of roughly 16.8% (Sales + Excise + Marketing taxes), which must be passed on to your guests.

Zone 3: The County & HOAs (The "Grey" Zone)

Best for: Buyers seeking larger acreage or golf course living.

This includes areas like Skyland, CB South, and Trappers Crossing. Here, the County is generally permissive, but the HOA (Homeowners Association) is the sheriff.

• Skyland: Many sub-associations strictly prohibit STRs less than 30 days.
• CB South: Allows STRs, but requires a specific permit from the POA.
• Riverland/Business Parks: strictly prohibited for residential STR use.

Let's talk! If you're looking to invest in mountain home real estate in Crested Butte, click here to contact me.