Overview: Are Short-Term Rentals Allowed in Peyton, CO?

Yes. Short-term rentals (STRs) are allowed in Peyton, which is located in El Paso County outside Colorado Springs city limits. As of the current county guidance, El Paso County does not have a codified STR ordinance. No approval or permit is required to STR your principal/primary residence. If you plan to STR an accessory structure (e.g., a detached guesthouse or converted garage), you must obtain zoning approval. Properties used as STRs must comply with the El Paso County Land Development Code and County Ordinances.

By contrast, if your property lies inside the City of Colorado Springs limits (often a small, disconnected portion of the Peyton postal area or nearby), you are subject to Colorado Springs STR rules: both owner‑occupied and non‑owner‑occupied STRs require a city permit, with stricter limits for non‑owner‑occupied units.

Key takeaways for investors:

• Inside Colorado Springs: requires a city STR permit; non‑owner‑occupied units face zoning and density limits (500′ from another non‑owner‑occupied unit; not allowed in single‑family zones).
• In El Paso County but outside Colorado Springs: principal residence STRs are permitted without a county permit; accessory‑structure STRs require zoning approval.
• Sales and lodging tax compliance applies at the state and local level regardless of jurisdiction.

How to Start a Short-Term Rental Business in This Market

1. Confirm your jurisdiction and zoning

• Identify whether your parcel is inside Colorado Springs city limits or within unincorporated El Paso County.
• Use SpringsView (City of Colorado Springs) to check zoning and any city permit mapping. For county questions, contact the El Paso County Planner of the Day.

2. Decide between operating a principal residence STR versus an accessory structure

• Principal residence: allowed in unincorporated El Paso County without county approval (recommended to follow the county’s Good Neighbor Guidelines). Accessory structure: requires county zoning approval.

3. If inside Colorado Springs, obtain a city STR permit

• Choose your permit type:
  • Owner‑occupied STR: you reside in the unit for at least 185 days/year (active duty military on TDY outside El Paso County may qualify for a 1‑year waiver).
  • Non‑owner‑occupied STR: must meet additional rules (no single‑family zoning districts; 500′ buffer from other non‑owner‑occupied STRs; density limits by zoning).
• Submit your application electronically via Accela (Colorado Springs’ online portal).

4. Set up your business operations

• Secure at least $500,000 in liability insurance (policy or hosting platform coverage).
• Publish your listing (Airbnb/VRBO); maintain local 24/7 emergency contact and Good Neighbor Guidelines inside the unit.
• Establish occupancy limits, trash services, parking practices, and noise controls.

5. Tax compliance

• If you use a marketplace facilitator (Airbnb/VRBO), they generally collect and remit City of Colorado Springs sales tax on their own City tax license; otherwise, you must obtain a City Sales Tax License. All taxes owed to the City must be remitted before issuance of the STR permit.
• Outside Colorado Springs but in El Paso County, obtain the Colorado State Sales Tax License to collect and remit state sales/lodging taxes and any applicable local taxes.

6. File for renewal annually (Colorado Springs) or maintain county compliance as applicable

• Colorado Springs STR permits renew annually; no grace period for late renewals.
• In unincorporated county, ensure ongoing compliance with county codes and good neighbor practices.

Required Documents, Permits, Licenses, and Guidelines

Colorado Springs (inside city limits)

• Permit type: Owner‑occupied vs. Non‑owner‑occupied STR.
• Application documents:
  • Completed STR checklist and Owner Acknowledgment.
  • Proof of primary residence (two of: driver’s license/State ID, voter registration, vehicle registration, dependent’s school registration; mail does not count).
  • STR Permit fee: $124.95 (cash, credit card, or electronic check).
  • Signed STR Affidavit (owner‑occupied or non‑owner‑occupied, annually).
  • Liability insurance proof (≥$500,000), via policy or platform coverage.
  • Proof of listing on hosting platform (email link).
  • Notify the City within 3 days of any changes; each separate unit requires a separate permit and fee.
• Other obligations:
  • Maintain weekly residential trash collection.
  • Post Good Neighbor Guidelines and permit details within the unit.
  • Maintain 24/7 local emergency contact able to respond within 1 hour.
  • Observe occupancy limits: two occupants per bedroom plus two additional occupants per dwelling unit; maximum of 15 occupants per dwelling unit.
  • Comply with all planning, zoning, building, fire, safety, noise, housing, and public health ordinances; no weddings/large commercial events.
• Sales tax compliance:
  • Marketplace facilitators collect/remit City of Colorado Springs sales tax on their own City tax license.
  • If you book directly, obtain a City Sales Tax License.
  • All City taxes must be paid prior to permit issuance.

El Paso County (unincorporated; outside Colorado Springs)

• No county STR permit for your principal residence; follow Good Neighbor Guidelines.
• Accessory structure STRs require zoning approval; contact the Planner of the Day to initiate.

State-level requirements (all investors)

• Colorado State Sales Tax License is needed if you are not using a marketplace facilitator that collects/remits for you (especially outside Colorado Springs).

Specific Regulations by Jurisdiction

City of Colorado Springs (if your property is inside city limits)

• Permit types and eligibility:
  • Owner‑occupied STRs allowed in lawful dwelling units in zones where residential units are permitted; owner must occupy ≥185 days/year.
  • Non‑owner‑occupied STRs:
    • Not permitted in single‑family zoning districts (R‑E, R‑1 6, R‑1 9, Single‑Family PDZs).
    • Must be 500′ from another non‑owner‑occupied STR unit (distance measured across all other zoning districts).
• Density limits (non‑owner‑occupied):
  • Single‑family zoning districts: one listing per property (whole house or one room/section).
  • R‑2 zoning: two listings per property.
  • Multi‑family zoning: up to four listings per property.
  • Condominium complexes: each owner may operate up to two STRs within the complex.
• Operational standards:
  • Occupancy capped at two per bedroom plus two additional occupants per dwelling unit; maximum of 15 occupants.
  • Display Good Neighbor Guidelines and permit info within the unit.
  • Maintain weekly trash collection and 24/7 emergency contact who can respond within one hour.
  • No hosting weddings or large events.
• Taxes:
  • Marketplace facilitators collect/remit City sales tax on their own license; if booking direct, you need a City Sales Tax License. Pay all City taxes before receiving your STR permit.
• No cap on the number of permitted STRs citywide; non‑owner‑occupied units face additional standards.

El Paso County (unincorporated; includes most of Peyton)

• No codified STR ordinance and no specific permit requirements for STRs of the principal structure.
• Accessory structures used for STRs require zoning approval.
• Properties must comply with the El Paso County Land Development Code and County Ordinances (noise, parking, events, etc.).
• County publishes non‑binding Good Neighbor Guidelines; following them is strongly recommended.

State of Colorado (no STR‑specific state law; general tax/business rules apply)

• Obtain a Colorado State Sales Tax License to collect/remit state sales and lodging taxes if you are not covered by a platform’s collection.
• Follow all applicable state business, safety, and tax obligations.

Contact Information (Local Authority in Charge of STRs)

City of Colorado Springs (if inside city limits)

• Email: shorttermrentals@coloradosprings.gov
• Phone: 719‑385‑5982
• In‑person assistance: Development Review Enterprise office, 2880 International Circle, STE 200‑7, Colorado Springs, CO 80910

El Paso County (unincorporated areas like most of Peyton)

• Planner of the Day (zoning and land use questions):
  • Email: dsd‑pod@elpasoco.com
  • Phone: 719‑520‑6944
• Sheriff’s Office (noise and parking concerns): 719‑390‑5555
• Code Enforcement (Land Development Code compliance): online complaint portal available through the county

Links to Source Pages

El Paso County STRs and Good Neighbor Guidelines:

• planningdevelopment.elpasoco.com/short-term-rentals/
• epc-assets.elpasoco.com/wp-content/uploads/sites/12/Misc/Good-Neighbor-Guidelines-updated.pdf

City of Colorado Springs STR Program and ordinances:

• coloradosprings.gov/str
• codelibrary.amlegal.com/codes/coloradospringsco/latest/overview
• aca-prod.accela.com/COSPRINGS/Default.aspx
• sites/default/files/aca_public_user_guide_strs.pdf
• sites/default/files/2025-01/Short%20Term%20Rental%20Checklist%20%28R%29.pdf
• sites/default/files/2024-05/str_affidavit_-_non_owner_occupied_002_r.pdf
• sites/default/files/2024-05/str_affidavit_-_owner_occupied_r.pdf

SpringsView map (zoning/STR permit visibility):

• experience.arcgis.com/experience/ae84852f373b43baa3c4a6934e3d742e
• sites/default/files/str_how-to_springsview.pdf

Colorado Springs ordinances:

• sites/default/files/inline-images/ordinance_18-112_-_program_adoption.pdf
• sites/default/files/inline-images/ordinance_19-49_-_sales_tax_requirement.pdf
• sites/default/files/inline-images/signed_ordinance_19-82.pdf
• sites/default/files/ordinance_19-101_-_non-owner-occ_regs_3.12.20.pdf

Rent Responsibly—Colorado Springs overview (confirm jurisdiction, then see official city/county pages for current rules):

• www.rentresponsibly.org/co/colorado-springs/

Hostaway—Colorado overview (state-level perspective, not jurisdiction‑specific; confirm local rules on official city/county pages):

• www.hostaway.com/blog/airbnb-rules-in-colorado/

Practical Notes for Investors

• Zoning is decisive: a small portion of the Peyton mailing area can be inside Colorado Springs. Use SpringsView to verify and plan accordingly.
• For non‑owner‑occupied investments inside Colorado Springs, confirm zoning and the 500′ buffer before buying. Single‑family zoning districts are off‑limits for new non‑owner‑occupied STR permits.
• Accessory structure STRs in unincorporated county require zoning approval—budget time and process for that.
• Revenue planning should include permit fees (Colorado Springs) and state/local tax remittance setup, regardless of county versus city.

If you need a zoning check, a parcel‑level Colorado Springs versus El Paso County determination, or help coordinating Colorado Springs permit filings through Accela, let me know your specific address and I can walk you through the next steps.