Denver’s Hottest Neighborhoods for Short-Term Rental Investment

Looking to invest in Denver’s thriving short-term rental market? Location is everything. With average ROI varying by as much as 35% between neighborhoods, choosing the right area can make or break your investment success. This guide analyzes Denver’s most profitable short-term rental neighborhoods based on actual performance data, occupancy rates, and growth potential as of 2025.

Unlike most generic market reports, our analysis integrates both hard data from thousands of Denver listings and on-the-ground insights from our property management experience in these specific neighborhoods.

Downtown Denver: LoDo, Union Station & Central Business District

The heart of Denver continues to deliver exceptional short-term rental performance, particularly for modern condos and lofts. Properties in this district average $220-350 per night with 76% average occupancy rates. The area’s walkability score of 95 makes it particularly attractive to business travelers and tourists who prefer not to rent cars.

Key demand drivers include the Colorado Convention Center (hosting 250+ events annually), major sporting events at Ball Arena, and the thriving restaurant scene. Investors should focus on properties with sound insulation, secure parking options, and modern amenities that appeal to business travelers.

While purchase prices remain highest in these central areas, the premium nightly rates and consistent year-round demand create attractive cash flow potential despite higher entry costs.

RiNo (River North Art District)

Once an industrial area, RiNo has transformed into Denver’s creative hub with phenomenal short-term rental growth. Properties here command $180-300 nightly rates with average occupancy reaching 78% during peak seasons. The neighborhood’s distinctive street art, craft breweries, and food halls create instant appeal for experience-seeking travelers.

Investments in this area benefit from proximity to downtown while offering a more authentic local experience. However, property selection requires careful consideration, as street-by-street conditions can vary significantly. Units near destination hotspots like The Source and Denver Central Market tend to outperform the broader neighborhood average by 15-20%.

Highland/LoHi

The Highland area offers an ideal blend of residential charm and urban accessibility, making it particularly attractive to family travelers and groups. With average nightly rates of $160-275 and steady 72% occupancy, properties here benefit from the neighborhood’s excellent restaurants, boutique shopping, and pedestrian-friendly layout.

The sweet spot in this area is typically 2-3 bedroom homes that can accommodate families or small groups. Properties with outdoor spaces, particularly those offering downtown views, command significant premiums and receive consistently high reviews. Recent infrastructure improvements, including enhanced pedestrian bridges to downtown, have further boosted this area’s appeal.

Cherry Creek

Cherry Creek represents Denver’s luxury short-term rental market, with average nightly rates of $200-450 and occupancy rates around 68%. The area attracts affluent travelers drawn to high-end shopping, dining, and proximity to Denver’s cultural institutions.

Investment properties in this area perform best when they offer premium finishes, generous space, and concierge-level amenities. While entry costs are substantial, Cherry Creek properties typically experience less seasonal fluctuation than other neighborhoods, providing more consistent year-round income. The area’s luxury positioning also typically results in fewer management headaches, with mature, respectful guests being the norm.

Emerging Hotspots: South Broadway & Baker

For investors seeking growth potential with more accessible entry points, South Broadway and the Baker neighborhood offer compelling opportunities. Currently commanding $140-220 per night with growing occupancy rates (now averaging 65%), these areas are benefiting from rapid commercial development and improved transportation links.

The “SoBo” district’s eclectic mix of music venues, vintage shops, and trendy restaurants appeals particularly to younger travelers seeking authentic experiences. Properties here typically cost 15-25% less than Highland or RiNo equivalents while showing strong year-over-year revenue growth. For maximum appeal, focus on properties within walking distance to Broadway’s commercial corridor.

Ready to Explore Denver’s Investment Opportunities?

Whether you’re considering purchasing a new investment property or optimizing an existing one, understanding neighborhood-specific performance is critical to success. At Simplify Renting, we offer detailed market analysis, revenue projections, and complete management solutions for Denver’s short-term rental market.