Short-Term Rentals in Unincorporated Teller County, Colorado

The first STR ordinance in county history -- and it wasn't final as of this review

Unincorporated Teller County had never formally permitted short-term rentals before 2026; property owners operating them did so outside any dedicated licensing framework. That changed when county commissioners Bob Campbell, Erik Stone, and Dan Williams passed Ordinance 23 on first reading on August 6, 2026, creating the county's first-ever STR licensing system. A second public hearing was scheduled for September 10, 2026. As of this page's last review, that second hearing had not yet occurred, so treat the specific terms below as the proposal on the table rather than settled, final law -- confirm with Teller County Planning whether the ordinance was adopted as described, amended, or delayed at that hearing.

For a buyer, the practical point is broader than any one provision: Teller County is actively moving from an unregulated STR environment to a licensed, capped one in real time. A property currently operating as a short-term rental without a license, or a listing that markets STR income potential based on the old unregulated status quo, needs to be evaluated against where the rules are headed, not where they've been.

What the ordinance would require

As passed on first reading, Ordinance 23 would limit short-term rentals to four zoning districts -- A-1 (Agricultural), R-1, RR (Rural Residential), and R1M -- and prohibit them everywhere else in unincorporated Teller County. Within any given subdivision, no more than 10% of residential properties containing a dwelling would be eligible to hold an STR license, a per-subdivision density cap similar in spirit to Summit County's per-basin caps but measured at a finer, subdivision-by-subdivision level. Operators would pay $1,000 in first-year licensing fees.

One provision is distinctive: occupancy limits under the ordinance would be tied to what the specific property's septic system can actually handle, rather than a flat bedroom- or square-footage-based headcount. That ties a parcel's STR earning potential directly to its onsite wastewater system's rated capacity -- meaning a property with an older or smaller OWTS could face a materially lower allowed occupancy (and therefore lower nightly rate potential) than a comparable home with a larger system, regardless of how many bedrooms it has.

Two other things to check: the Woodland Park city line and building-permit jurisdiction

The City of Woodland Park is incorporated and runs its own, separate short-term-rental system entirely outside county jurisdiction -- owners there go through the city's Planning Department for a permit and must obtain an annual $35 business license, and Woodland Park's own STR ordinance has already drawn a lawsuit from local officials over its terms. If a parcel sits inside Woodland Park city limits, none of the county's Ordinance 23 framework described above applies -- confirm which jurisdiction actually governs the parcel before assuming either rule set.

Separately, Teller County's own Building Division issues permits and performs inspections only for land in unincorporated Teller County; Woodland Park, Cripple Creek, and Victor each run their own building departments. Since Ordinance 23's occupancy limit depends on septic system capacity, verifying that capacity means pulling OWTS and building permit records from the correct office for where the parcel actually sits -- the county Building Division for unincorporated land, or the relevant municipal building department otherwise.

What to verify before counting on STR income here

• Confirm with Teller County Planning whether Ordinance 23 was formally adopted after the September 10, 2026 hearing, and whether its terms changed from the first-reading version described here.
• Confirm the parcel's zoning district -- only A-1, R-1, RR, and R1M would qualify for a license under the ordinance as passed on first reading.
• Ask whether the subdivision containing the parcel is already near or at its 10% licensed-property cap.
• Get the property's current septic (OWTS) permit and rated capacity from the appropriate office, since it would directly set the allowed occupancy -- and therefore realistic rental income -- under the new rule.
• Verify whether the parcel is inside Woodland Park, Cripple Creek, or Victor city limits, since none of the county ordinance would apply there.