Dillon Real Estate / Short-Term Rental Guide
2026 Town of Dillon Short-Term Rental Rules & Real Estate Guide
The Town of Dillon has no STR license cap and no waitlist. You can apply for a license after closing without competing for a limited number of permits. That puts Dillon in a short list of Summit County towns where immediate STR licensing is still available. Before you go further, there is one thing that catches buyers constantly: Dillon Valley, Summit Cove, and several other nearby areas are not inside the Town of Dillon. The rules there are completely different.
Written by Tucker Zimmerman, Associate Broker, Slifer Smith & Frampton — Summit County, Colorado
303-907-9129 | TZimmerman@SliferSummit.com
Updated July 2026 Verified against Town of Dillon official sources
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License Cap No Cap No waitlist. Apply after closing. |
Total STR Tax Rate 19.875% Collected from guests on top of the nightly rate, not from owner revenue. |
Annual License Fee $700 Flat rate. Expires May 31. Hard July 1 renewal deadline. |
The Short Answer
Yes, you can Airbnb a Town of Dillon property. No cap, no waitlist. Apply after closing and get licensed. That makes Dillon one of the more accessible STR markets in Summit County right now, alongside Silverthorne Zone 2.
The tax rate is 19.875%, the highest in Summit County. That sounds alarming until you understand it is collected from guests on top of the nightly rate, just like a hotel tax. It does not come out of what you earn.
The most important thing to get right before anything else: confirm the property is actually inside the Town of Dillon. Dillon Valley, Summit Cove, Keystone, and Summerwood all use Dillon addresses or sit near Dillon, but they are in unincorporated Summit County. Different rules entirely. For the full countywide comparison, see my Summit County STR regulations guide.
Looking at a specific Dillon property? I can confirm whether it is inside town limits, walk through the licensing picture, and help you evaluate STR potential before you go under contract. 303-907-9129 or TZimmerman@SliferSummit.com
Critical: Dillon Valley and Summit Cove Are Not the Town of Dillon
This is the jurisdiction mistake that catches more buyers in the Dillon area than any other. Several well-known communities near Dillon have Dillon addresses or sit right next to town, but they are in unincorporated Summit County and governed by Summit County's STR framework, not the Town of Dillon's.
| Community | Actual Jurisdiction | STR Framework |
|---|---|---|
| Town of Dillon | Incorporated municipality | No cap, no waitlist. This page. |
| Dillon Valley | Unincorporated Summit County | Summit County neighborhood overlay rules. Basin caps, booking limits. |
| Summit Cove | Unincorporated Summit County | Summit County neighborhood overlay rules. Basin caps, booking limits. |
| Keystone | Unincorporated Summit County | Resort overlay zone. Different rules, own page. |
| Summerwood | Unincorporated Summit County | Summit County neighborhood overlay rules. Basin caps, booking limits. |
The fastest way to confirm: use the Summit County GIS tool. Enter the property address and check the Jurisdiction field. If it says anything other than "Town of Dillon," this page does not apply.
Dillon's Approach: No Cap, Straightforward Licensing
Dillon launched its STR licensing program on January 1, 2019. Unlike Breckenridge, Frisco, and Silverthorne, which all eventually implemented caps, the Town of Dillon has not restricted the number of licenses. The town's approach has been to regulate how STRs operate rather than limit how many exist.
The tradeoff for that open access is the tax rate. Dillon's 19.875% combined STR tax is the highest in Summit County, the result of layering a 5% STR excise tax on top of existing sales and lodging taxes starting in July 2023. That excise tax is collected from guests at booking, not subtracted from what owners earn.
The result is a market where any qualifying property inside town limits can be licensed without a wait, the process is relatively straightforward, and the guest-facing cost is higher than neighboring towns. For buyers who need licensing certainty and cannot wait months or years, Dillon is one of the most practical options in Summit County right now.
Dillon STR Licensing: How It Works
The process is clean compared to waitlisted markets. Here is everything you need to know.
| License cap | None. Any qualifying property inside town limits can be licensed. |
| Waitlist | None. Apply after closing. |
| Annual license fee | $700 flat rate regardless of when during the year obtained |
| License expiration | May 31 each year, regardless of when issued |
| Renewal deadline | July 1 hard deadline. Miss it and the license cannot be renewed. Must cease STR operations immediately. |
| Auto-renewal | No. Must be actively renewed each year through dillon.munirevs.com |
| License transfer on sale | No. Non-transferable. New owner applies after closing. No wait required. |
| Occupancy limit | 2 per bedroom plus 2. Must appear in all advertising. |
| Business license | Required separately. $60 occupational tax annually. Owner or property manager must hold it. |
| Night cap | None. Rent as many nights as demand supports. |
Source: Town of Dillon: STR Regulations | Town of Dillon: STR FAQs
Want to confirm a specific Dillon property is inside town limits? Send me the address. I confirm jurisdiction and licensing status as a standard part of any STR-focused purchase evaluation. 303-907-9129 or TZimmerman@SliferSummit.com
The License Does Not Transfer on Sale
Same rule as every Summit County town. The seller's license ends at closing. The new owner applies fresh after closing. Because Dillon has no cap and no waitlist, this is a minor paperwork step rather than a meaningful obstacle. Apply, pay $700, and you are licensed.
A listing with strong rental history tells you what the current owner earned with their active license. That history does not transfer to you, but the path to your own license is straightforward once you close.
Fees and Taxes
Dillon's 19.875% total STR tax rate is the highest in Summit County. It is also the number most likely to give buyers pause when they first see it. The key context: this tax is collected from guests on top of the nightly rate, exactly like a hotel tax. It does not come out of what you earn. Guests see it at checkout and pay it in addition to the room rate.
Total STR Tax Rate: 19.875%
| Tax Component | Rate | Remitted To |
|---|---|---|
| Sales tax (state, county, and local) | 8.875% | Colorado Department of Revenue |
| Town of Dillon lodging tax | 6.0% | Town of Dillon directly |
| STR excise tax (effective July 1, 2023) | 5.0% | Town of Dillon directly |
| Total | 19.875% |
Sales tax is remitted to the Colorado Department of Revenue. Lodging tax and excise tax are remitted directly to the Town of Dillon monthly through MuniRevs. A lodging tax return must be filed every month even if there is no tax to remit, with forms due by the 20th of the following month.
Source: Town of Dillon: Lodging Tax Information
Occupancy Limits
Maximum occupancy is 2 guests per bedroom plus 2 additional guests:
| Unit Size | Max Guests |
|---|---|
| Studio | 2 |
| 1 Bedroom | 4 |
| 2 Bedrooms | 6 |
| 3 Bedrooms | 8 |
| 4 Bedrooms | 10 |
Maximum occupancy must appear in all advertising on all platforms. All advertising must also include the Town of Dillon STR license number.
Why Dillon Works as an STR Market
Dillon does not get the headline attention that Breckenridge or Frisco gets, which is part of what makes the real estate pricing more accessible. The visitor demand is real and year-round.
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Lake Dillon and the marina Dillon sits directly on Lake Dillon, one of the most photographed locations in Summit County. The marina, paddleboarding, sailing, the rec path, and Dillon Amphitheater events drive strong summer demand that most mountain towns do not have. Summer occupancy here holds up in a way that purely ski-driven markets do not. |
Central Summit County location Keystone, Arapahoe Basin, Breckenridge, Copper Mountain, and Silverthorne are all within 20 to 30 minutes. Guests who want flexibility across multiple ski areas land in Dillon regularly. It is the geographic center of Summit County's ski market. |
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No cap means no competition for permits While Frisco buyers wait over a year and Breckenridge Zone 3 buyers face a decade-long horizon, Dillon buyers apply after closing and get licensed. That simplicity has real value for buyers who need income potential to start working relatively quickly. |
More accessible price points Dillon tends to be priced below comparable Breckenridge properties. For buyers whose budget does not stretch to Breckenridge resort-zone prices, Dillon offers genuine STR potential at a more accessible entry point. The return math can work well here precisely because the purchase price is lower. |
What I Go Through Before Recommending a Dillon STR Purchase
- Is the property actually inside the Town of Dillon, or is the address in Dillon Valley, Summit Cove, Keystone, or Summerwood?
- Does the layout, bedroom count, and access work for rental guests?
- Is there adequate parking? Dillon requires one parking space per bedroom for STR properties.
- Does the property have strong Lake Dillon access, views, or proximity that support summer demand?
- Does the HOA allow short-term rentals? Most do outside of deed-restricted units, but worth confirming.
- Is the renewal calendar understood? July 1 hard deadline means this needs to be on the calendar every year.
- Does the property still make sense as a personal use asset and long-term hold without rental income?
Is Dillon a Good Airbnb and Vacation Rental Market?
Yes, for the right buyer and the right property. The no-cap framework, the lake access, and the central location make a strong combination. The tax rate is the highest in Summit County but it is on the guest, not you. The renewal deadline is a real administrative discipline but it is not complicated once you know it.
Dillon makes sense if:
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Worth thinking through if:
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Comparing Dillon against Silverthorne, Frisco, Breckenridge, Keystone, or Copper Mountain? Start with the full countywide comparison: Summit County Short-Term Rental Regulations Guide.
Common Questions
Can I Airbnb a property in Dillon Colorado?
Yes, if the property is inside the Town of Dillon. No cap, no waitlist. Apply after closing and get licensed. Dillon Valley and Summit Cove are not the Town of Dillon and have different rules.
Are Dillon Valley and Summit Cove part of the Town of Dillon?
No. Both are in unincorporated Summit County and governed by Summit County's STR framework, which includes neighborhood overlay zones, basin caps, and 35-night-per-year booking limits in residential areas. Confirm jurisdiction with the Summit County GIS tool before assuming Town of Dillon rules apply.
Does the STR license transfer when a Dillon property sells?
No. Dillon STR licenses are non-transferable. The seller's license ends at closing. Because there is no cap or waitlist, the new owner applies after closing and can be licensed relatively quickly.
What is the total STR tax rate in Dillon?
19.875%, collected from guests on top of the nightly rate. It includes 8.875% sales tax, 6% lodging tax, and a 5% STR excise tax effective July 2023. Guests pay it at checkout like a hotel tax. It is not deducted from owner revenue.
How much does a Dillon STR license cost?
$700 per year flat, regardless of when during the year the license is obtained. A separate $60 occupational tax for a business license is also required annually.
When do Dillon STR licenses expire and what is the renewal deadline?
Licenses expire May 31 each year. Renewals must be submitted through dillon.munirevs.com by July 1. Miss the July 1 deadline and the license cannot be renewed. The owner must immediately cease STR operations. There is no auto-renewal.
Is there a night cap on Dillon STR rentals?
No. The Town of Dillon does not limit the number of nights you can rent per year. Once licensed, rent as much as demand supports.
What is the occupancy limit for Dillon short-term rentals?
2 guests per bedroom plus 2. A 2-bedroom unit maxes at 6 guests. A 3-bedroom at 8. The maximum occupancy must appear in all advertising on all platforms, along with the STR license number.
Do HOA rules restrict STRs in Dillon?
Rarely outside of deed-restricted affordable housing units. Most market-rate properties in Dillon permit short-term rentals. Confirm during the inspection period by reviewing HOA CC&Rs.
What is the parking requirement for Dillon STRs?
One parking space per bedroom is required. Confirm the property has adequate parking before assuming it qualifies for an STR license.
Thinking About a Dillon Purchase?
Dillon's no-cap framework is genuinely attractive for buyers who need licensing certainty. The lake access is real, the central location works, and the entry prices are more accessible than Breckenridge. The jurisdiction check on any specific property is the first step, and I can run that in minutes.
If you are comparing Dillon against Silverthorne, Frisco, Keystone, or Breckenridge, I can walk through the licensing picture and income potential across all of them based on what you actually want to accomplish.
Tucker Zimmerman
Associate Broker, Slifer Smith & Frampton
303-907-9129 (call or text)
TZimmerman@SliferSummit.com
SoldInSummit.com
Related Resources
- Town of Dillon: Official STR Regulations Page
- Town of Dillon: STR FAQs
- Town of Dillon: Lodging Tax Information
- Dillon STR License Renewal Portal (MuniRevs)
- Summit County GIS Tool: Confirm Property Jurisdiction
- Summit County Short-Term Rental Regulations: Full Countywide Guide
- Silverthorne Short-Term Rental Rules
- Frisco Short-Term Rental Rules
- Breckenridge Short-Term Rental Rules
- Blue River Short-Term Rental Rules
- Dillon Real Estate Listings
Disclaimer: Short-term rental rules, license requirements, fees, taxes, renewal deadlines, and enforcement policies change. This page is for general informational purposes only and is not legal, tax, or financial advice. Always verify current requirements directly with the Town of Dillon at str@townofdillon.com or 970-468-2403 and qualified legal and tax professionals before making any purchase or licensing decision. Tucker Zimmerman is a licensed Colorado real estate broker with Slifer Smith & Frampton.