City Watch
Short-term rental rules in Palisade, CO
How Palisade regulates short-term rentals: the rules that apply, their sources, and pending changes.
Rules here limit which homes may operate as short-term rentals, how many, where, or for how many nights a year.
- Hard townwide cap: 12 Resident + 12 Investment STVR licenses (LDC 7.01.M)
- Two-tier resident vs investment license split
- Investment (non-owner-occupied) STVR licenses capped at 12
- Waitlist in force; annual Jan 1-Feb 28 application window only
Based on: Palisade Land Development Code §7.01.M — Short-Term Vacation Rentals (as amended by Ord. 2025-02, text amendment to LDC
Summary of the rule
Enacted Ordinance No. 2025-02 (adopted 04.22.2025) amending Palisade LDC §7.01 (Short Term Vacation Rentals), §7.01.M standards (verbatim, additions): 'c. Investor STVR licenses shall be limited to a maximum of twelve (12) licenses within the Town. d. Resident STVR licenses shall be limited to a maximum of twelve (12) licenses within the Town.' This enacted amendment struck (shown as strikethrough) the prior codified cap of 'no more than 3 percent of the total number of single family housing units in the Town' (former LDC §7.01.M.3.l, July 2023 revision). §7.01.M.1 also requires discretionary Planning Commission site-plan approval with public notice/hearing before an STVR may operate.
Last reviewed Sep 16, 2026 · Sources · Report an error
Pending legislation
Monitoring Palisade · system last checked Oct 25, 2026
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City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.