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Discover which Denver neighborhoods offer the best short-term rental investment opportunities based on comprehensive performance data. This detailed analysis breaks down occupancy rates, average daily rates, and ROI potential across the city’s most promising areas for vacation rental properties.
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Denver Airbnb Market Data Deep Dive: Neighborhood Performance Analysis

Denver’s short-term rental landscape varies dramatically across neighborhoods, with substantial differences in occupancy rates, pricing potential, and overall ROI. For investors and property owners, understanding these neighborhood-specific performance metrics is essential for making informed investment decisions.

This analysis examines current performance data across Denver’s key neighborhoods, highlighting both established high-performers and emerging opportunities. By comparing critical metrics including average daily rates, occupancy percentages, and seasonality patterns, we provide a comprehensive view of where the strongest investment potential currently exists.

Whether you’re considering your first Denver STR investment or optimizing an existing portfolio, these neighborhood insights will help you target the most promising locations for your specific investment goals.

Downtown/LoDo Performance Profile

Downtown and LoDo continue to lead Denver’s market in terms of average daily rate, commanding $215-240 per night for one-bedroom units and $290-330 for two-bedroom properties. Occupancy rates average 72% annually with significantly higher performance (85%+) during summer months and major events.

Revenue seasonality is less pronounced than in other neighborhoods thanks to year-round business travel, though weekend rates consistently outperform weekdays by 20-35%. Properties with balconies or views command 15-25% premiums, while those offering parking achieve 8-12% higher booking rates despite the area’s walkability.

While acquisition costs remain highest in these areas, the premium rates and consistent occupancy deliver strong cash-on-cash returns, particularly for investors who can secure properties with favorable financing terms. Competition has intensified, making professional management and strategic differentiators increasingly important.

RiNo/Five Points Emerging Strength

RiNo and Five Points have seen the most dramatic performance improvements over the past 18 months, with average daily rates increasing 18% year-over-year to reach $180-210 for one-bedroom units. Occupancy rates now average 68-74%, with particularly strong weekend performance driven by the area’s dining and entertainment options.

Seasonality follows citywide patterns but with more pronounced weekend spikes, as the area has become Denver’s preferred destination for bachelor/bachelorette parties and group celebrations. Properties accommodating 6+ guests command exceptional premiums, with 3+ bedroom units achieving the highest revenue per square foot in the entire Denver market.

With continued commercial development and improving walkability scores, RiNo represents a strong appreciation play alongside current cash flow potential. Properties on quieter streets within walking distance to main corridors deliver the best guest satisfaction scores and review ratings.

Washington Park/Cherry Creek Stability

Washington Park and Cherry Creek properties demonstrate the most consistent year-round performance with the least seasonal volatility. Occupancy rates average 65-70% annually with only a 12-15% variation between peak and off-peak seasons. Average daily rates range from $165-190 for one-bedroom units to $240-280 for two-bedroom properties.

These areas attract a higher percentage of extended stays (7+ nights), with average booking durations 40% longer than downtown properties. This leads to fewer turnovers and lower operational costs, enhancing net returns despite slightly lower gross revenue than downtown/LoDo properties.

Guest demographics skew toward families and mature travelers, with corresponding expectations for higher-quality furnishings and quieter environments. Properties with private outdoor spaces command the highest premiums (15-20%), while proximity to parks increases booking velocity by 25-30% during summer months.

Highlands/Berkeley Value Opportunity

The Highlands and Berkeley neighborhoods offer an attractive balance of strong performance metrics and (relatively) reasonable acquisition costs. One-bedroom units achieve average daily rates of $145-175 with occupancy rates averaging 62-68% annually. Two-bedroom properties command $210-250 with slightly higher occupancy (65-70%).

These areas show pronounced seasonality with summer performance exceeding winter by 30-40% in both rate and occupancy. Properties within walking distance to Tennyson Street or Highland Square achieve 15-20% higher revenue than those requiring transportation to reach dining and shopping areas.

These neighborhoods demonstrate particularly strong returns for renovated properties that maintain neighborhood character while offering modern amenities. Their popularity with relocation visitors creates opportunities for mid-term rentals (1-3 months) during slower seasons, providing revenue stability for flexible investors.

Emerging Neighborhood Opportunities

Several emerging neighborhoods show promising investment potential with rapidly improving performance metrics. Villa Park, Barnum, and Ruby Hill all demonstrate year-over-year ADR growth exceeding 12%, with occupancy improvements of 8-15% as these areas gain visibility on booking platforms.

While current performance metrics remain 15-25% below established neighborhoods, dramatically lower acquisition costs create superior cash-on-cash return potential. Early investors in these areas benefit from diminished competition and significant appreciation potential as neighborhood amenities continue to improve.

These emerging areas particularly reward investors who can identify properties with unique character or exceptional features that stand out in the current competitive landscape. Properties offering mountain views, distinctive architecture, or large yards tend to outperform standard units by substantial margins.

Your Location Strategy

The ideal Denver neighborhood for your STR investment depends on your specific investment goals, risk tolerance, and management approach. Each area presents distinct advantages and challenges that align differently with various investor profiles and strategies.

At Simplify Renting, we help investors identify the neighborhoods that best match their particular investment criteria through personalized market analysis and performance forecasting. Our local expertise translates these market metrics into actionable investment guidance.