Short-Term Rental Regulations
in Paonia, CO

Airbnb listings are allowed in Paonia, CO, but with restrictions. STRs require a municipal license and are limited by a cap of 30 total licenses. Zoning compliance is required; a Special Use Review (involving a public hearing) is mandatory for STR applications in R-1, R-2, R-3, or E-1 zones. Applicants must own the property, pass a safety inspection, and provide proof of insurance. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

STRs require a municipal license and are limited by a cap of 30 total licenses. Zoning compliance is required; a Special Use Review (involving a public hearing) is mandatory for STR applications in R-1, R-2, R-3, or E-1 zones. Applicants must own the property, pass a safety inspection, and provide proof of insurance.

Yes, a permit is required to operate a short-term rental in Paonia. 1) Complete the Town STR application form (available on the Town of Paonia website or at Town Hall) and submit to Town Hall (214 Grand Ave.). 2) Provide required documentation: proof of ownership, zoning compliance (or submit Special Use Application if property in R-1/R-2/R-3/E-1), proof of insurance, and pass safety inspection. 3) Pay the application/licensing fee; applications are reviewed and issued on a first-come, first-served basis until the license cap is reached.

1) Complete the Town STR application form (available on the Town of Paonia website or at Town Hall) and submit to Town Hall (214 Grand Ave.). 2) Provide required documentation: proof of ownership, zoning compliance (or submit Special Use Application if property in R-1/R-2/R-3/E-1), proof of insurance, and pass safety inspection. 3) Pay the application/licensing fee; applications are reviewed and issued on a first-come, first-served basis until the license cap is reached.

Vrbo is permitted in Paonia, CO under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in Paonia are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for Paonia. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.