The challenge of affordable workforce housing has become increasingly urgent in Frisco, Colorado, especially in the wake of the Covid-19 pandemic. The economic disruptions caused by the pandemic have intensified worker shortages, with many local businesses pointing to the lack of affordable housing as a key factor. This growing concern has sparked discussions about potential shifts in the town’s character, as fewer employees are able to live within the community where they work.
In response, the Town of Frisco and other local government entities have taken proactive steps to mitigate the housing crisis. One significant approach has been the implementation of regulations on short-term rentals (STRs), aimed at preserving local housing for the workforce. These evolving policies are designed to address the loss of employee housing while balancing the needs of homeowners and businesses.
However, tourism remains the lifeblood of Frisco’s economy, and short-term rentals have long been integral to supporting this industry. Unlike larger resort destinations that rely on high-rise hotels, Frisco maintains its charm by offering alternative lodging options through STRs. As town officials work to find an equilibrium between expanding workforce housing and sustaining tourism, the regulatory environment surrounding STRs continues to evolve.
For those looking to invest in Frisco real estate for short-term rentals, staying informed about these regulatory changes is crucial. Understanding the latest updates on Frisco’s STR rules will help investors navigate the shifting landscape and make informed decisions that align with both economic opportunities and community needs.
The towns of Blue River, Breckenridge, Dillon, Frisco, and Silverthorne each have clearly defined boundaries, and their short-term rental (STR) regulations apply only to properties within their respective limits. However, many homes near these towns are actually located in unincorporated Summit County, where STR rules can vary significantly depending on the property's exact location. Because of this, it's crucial to determine which local government oversees a specific property before proceeding with short-term rental plans.
How to Check a Property’s Jurisdiction
If you're unsure whether a property falls within a town’s limits or is part of unincorporated Summit County, you can easily verify it using the Summit County GIS tool:
Visit the Summit County GIS website.
Accept the County disclaimer.
Enter the property address in the search bar.
When the property details appear, look at the bottom-left corner of the page under "Jurisdiction."
This section will confirm whether the property follows the STR rules of Blue River, Breckenridge, Dillon, Frisco, or Silverthorne, or if it is instead governed by unincorporated Summit County regulations.
Understanding the correct jurisdiction ensures compliance with the appropriate STR rules and avoids potential legal issues.
Frisco Property Rentals Under 30 Days
As an incorporated town, Frisco operates under its own set of regulations, including Ordinance 18-10, which outlines the town’s short-term rental (STR) rules. According to Section 110-37, a short-term rental is defined as any accommodation unit leased for fewer than 30 consecutive days.
Frisco’s STR regulations primarily apply to property owners who list their homes on platforms like Airbnb, VRBO, and similar services for rentals under 30 days. Even if you rent out your property just once for a period shorter than 30 consecutive days, you are required to obtain a short-term rental license from the Town of Frisco and adhere to all applicable STR regulations.
On the other hand, if you only rent your property for 30 days or more at a time, Frisco’s STR rules do not apply to you, and there is no need to obtain an STR license. Rentals lasting longer than 30 consecutive days are categorized as long-term rentals, which are encouraged as they help provide housing for local workers. In fact, both Summit County and the Town of Breckenridge offer incentives for property owners who lease to local employees. Currently, there are no new regulations being considered for rentals exceeding 30 days in Frisco.
In December 2018, the Frisco Town Council approved a Short-Term Rental (STR) Ordinance requiring property owners to obtain an STR license before renting their units for stays of less than 30 days. The annual license fee is $250, and applicants must submit a parking plan and an affidavit confirming compliance with life safety standards. Additionally, property owners must provide guests with key rental information, including emergency contacts and property details.
One of the main considerations in drafting the STR ordinance was setting occupancy limits. The final regulation allows two occupants per bedroom plus four additional guests per unit.
Each STR owner must designate a Responsible Agent—an individual or company available 24/7 to address complaints and issues related to the rental property.
In response to workforce housing concerns, the Town Council discussed various funding mechanisms, including an excise tax on STRs. Initially proposed at 7.5%, the tax was ultimately set at 5% and approved by voters in April 2022. This tax is in addition to the existing 10.725% sales and lodging tax, bringing the total tax rate for STRs to 15.725%. Discussions about additional per-bedroom regulatory fees remain ongoing, though no new fees have been implemented.
To manage STR growth, the Town Council set a cap at 25% of Frisco’s residential properties. This cap, established through Ordinance 22-10 in October 2022, allows up to 900 active STR licenses. The Town reassesses this cap annually.
On February 23, 2023, the cap was reached, leading to the introduction of a waitlist system with a non-refundable $25 application fee. As of December 3, 2024, there were 55 applicants on the waitlist, with an estimated wait time of 7 to 9 months.
Currently, Frisco does not impose restrictions on the number of rental nights for STR properties, allowing property owners to rent their units year-round.
For more details, the Town of Frisco provides updated STR information on its official website.
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