Short-Term Rental Guidelines in Crested Butte

Short-Term Rental Regulations in the Crested Butte Area: What Potential Owners Should Know

Understanding the rules around short-term rentals in the Crested Butte area is critical if you’re thinking about renting a property for less than 30 days. These regulations vary significantly across jurisdictions—each with its own licensing, caps, and expectations. Here’s a breakdown of how it works in the Town of Crested Butte, Mt. Crested Butte, Crested Butte South, and the surrounding rural areas.

1. Town of Crested Butte (Downtown & Within Town Limits)

In the Town of Crested Butte, short-term rentals are regulated through a vacation rental licensing program with specific limitations and responsibilities. 

Two Types of STR Licenses

• Occupancy License
  Issued for properties where the owner lives or long-term rents the property for at least six months per year. These licenses are allowed in all zone districts and come with a maximum of 90 rental nights per year. There is no cap on the number of these licenses.

• Unlimited License
  Intended for second homes or investment properties, these allow unlimited rental nights per year, but are subject to limits:

  • Only allowed in specified zoning districts.

  • Capped at 198 total licenses citywide.

  • The most significant restriction limits short-term rentals to two per block face (a defined segment of a street).  View the map detailing the current short term rental licenses per block face and current availability for new licenses. It's important to understand that there is no guarantee that a license will be approved. If short-term renting is your main intention as a buyer, the Town of Crested Butte may not be the best area to buy in.

  • Must rent at least 29 nights per year to maintain eligibility.

Key Rules & Requirements

• STR licenses must be obtained before advertising or renting your property for under 30 days.

• Licenses are non-transferable—if a property changes ownership, the new owner must apply for a new license. Applications are only accepted once per year in the month of October. Some properties were grandfathered in before these regulations took event.

• STRs must adhere to a Good Neighbor Policy, parking plans, occupancy limits, and host inspection requirements.

• Failure to license properly can result in significant fines (up to $1,000/day for unlicensed rentals).

This balanced approach aims to allow rentals while protecting neighborhood character and housing supply.

2. Town of Mt. Crested Butte

Mt. Crested Butte’s STR requirements are more straightforward than in downtown Crested Butte:

Unrestricted STR Licenses - You Must Apply for a Permit

• Any property advertised or rented for 29 nights or less must obtain a short-term rental license from the Town.

• There is no cap on the number of licenses and no zoning restrictions limiting where STRs can be located within town limits, making short-term rentals essentially unrestricted, unless otherwise restricted by the covenants of a particular homeowner's association that governs a particular property.

Registration & Compliance

• Owners must designate a local representative (within about 45 minutes) to respond to guest issues and property concerns.

• STR licenses must be renewed annually, and licenses expire December 31 each year.

• STR properties must pay applicable lodging taxes—combined state, county, town, and marketing district taxes can total around 18.8% on gross rental revenue for rentals booking through third-party reservation services.

• Failure to display or obtain a license, or to display the license number in all advertising, carries fines.

Mt. Crested Butte’s system is designed to ensure compliance and safety without hard caps on rental units.

3. Crested Butte South

Crested Butte South (CBS) is a large, unincorporated subdivision governed by the Crested Butte South Property Owners Association (POA) rather than a town government.

No Town STR Ordinance, But a POA License System

• Historically, CBS had an STR permit policy requiring a Short-Term Rental License and annual renewal through the POA.

• A recent attempt to install more formalized STR rules (including caps and limits) did not pass the required vote, so the covenants remain unchanged as of early 2026.

Current STR Framework

• STR licenses through the POA may still be required, and owners must:

  • Provide a designated responsible party in Gunnison County who can respond quickly (often within 60 minutes). 

  • Collect and remit all applicable state and local taxes.

  • Provide parking plans, trash protocols, and guest rules. 

• Owners are responsible for guests complying with local and POA policies or risk fines and license revocation.

It’s important to check with the CBS POA for the most current policies, as they update their licensing procedures and covenants periodically.

4. Rural & Other Unincorporated Crested Butte

If your property lies outside any town limits in rural Gunnison County (for example, on county land or in other unincorporated subdivisions like Skyland, Buckhorn Ranch, Larkspur, Riverbend, etc.), the county itself does not have a specific STR permit requirement—but there are some important obligations:

Tax & County Rules

• Any rental of a unit for less than 30 consecutive days is subject to state and local sales tax, and owners must collect and remit taxes accordingly.

• Gunnison County doesn’t currently have a comprehensive STR licensing code the way Crested Butte and Mt. Crested Butte do.

• However, properties may still be subject to zoning or land use restrictions, and local covenants, most commonly HOA rules, can impose additional requirements.

If considering a rural STR, it’s wise to contact county planning or a local attorney to confirm whether there are any specific zoning or permit obligations beyond taxes.

Why These Rules Matter

Short-term rental regulations aren’t just paperwork—they affect property value, neighborhood dynamics, housing supply, and owner liability. Whether you’re a full-time resident, second homeowner, or investor, knowing which rules apply where your property sits can save you from fines, legal headaches, and lost rental income.

Where you buy in the Crested Butte area should align directly with how you plan to use the property. If consistent short-term rental income is a priority, Mt. Crested Butte generally offers the most clarity and flexibility due to its straightforward licensing and lack of caps. The Town of Crested Butte requires a more strategic approach, as licenses are limited by zoning and block, making existing licenses and eligibility critical to evaluate before purchasing. Crested Butte South and rural areas can work well for full-time or long-term owners who may rent occasionally, but rules are less predictable and often governed by POAs or covenants rather than municipalities. In all cases, understanding the regulatory landscape before you buy is essential—assumptions around rental use can materially impact value, income potential, and long-term flexibility.