Boulder's New Short-Term Rental Rules for Sundance 2027: What Homeowners Need to Know

Written By Kristen Naylor

When the Sundance Institute announced in March 2025 that it was moving the Sundance Film Festival from Park City to Boulder, Colorado, it triggered more than excitement about red carpets on the Pearl Street Mall. It also triggered a scramble at City Hall: Boulder has roughly 4,800 hotel rooms within 10 miles of the festival footprint, and an 11-day event expected to draw tens of thousands of visitors was never going to fit into that inventory. The city's answer was a brand-new rental license created specifically for festival periods — and it changes the rules for a lot of homeowners who couldn't legally do short-term rentals before.

Here's what's actually in the ordinance, who qualifies, and how to apply.

The festival dates

The first Boulder-hosted Sundance Film Festival runs January 21–31, 2027, with venues spread across downtown Boulder, the CU Boulder campus, Chautauqua, and the Boulder Public Library district.

The big change: a new "Festival Lodging Rental License"

Boulder's existing short-term rental (STR) license has always required the property to be the owner's principal residence — you had to live there more than half the year, prove it with a Colorado ID showing that address, and the property couldn't be held in an LLC or corporation. That rule locked a lot of investment properties, second homes, and non-owner-occupied units out of the short-term rental market entirely.

To free up more lodging for Sundance, the Boulder City Council created a separate license just for city-approved "Special Festival Events." The City Council approved the framework on September 18, 2025 (7–1), with a final vote on October 9, 2025. Here's what makes it different from the standard STR license:

  • No owner-occupancy requirement. You don't have to live in the home, and it doesn't have to be your primary residence.

  • Capped at 29 days per year. The license only covers rentals during city-designated "Special Festival Events" — generally defined as events drawing more than 50,000 attendees and lasting more than five days — plus a window of roughly 10 days before and 9 days after the event.

  • Tenants can participate too. In April 2026, the City Council unanimously expanded the ordinance so that renters — not just owners — can sublease during the festival, as long as they get written permission from their landlord. If a tenant applies without that consent already on file, the city will reach out to the property owner directly to request it.

  • You don't have to give up a long-term rental license to get one. Earlier drafts would have forced owners to convert a unit out of long-term rental status to participate; that requirement was dropped, so long-term rental properties can now also hold a festival license.

In short: many properties that never qualified for Boulder short-term rentals, second homes, investment condos, LLC-owned units, and rented apartments (with landlord sign-off) can now be listed for the 29-day festival window.

How the licensing actually works

The city began issuing Festival Lodging Rental Licenses on May 4, 2026. By mid-June, more than 260 had been issued with roughly 610 more pending so demand is real and the process is moving.

The process breaks down into four steps:

  1. Apply for the Festival Lodging Rental License. As part of the application, you'll obtain a business license, sign affidavits covering ownership, safety, and occupancy, and pay the application fee. If you're a tenant applying, the city will confirm your landlord's written consent as part of this step.

  2. Prepare your home for listing. You can self-manage or work with a property management company. Visit Boulder (the city's tourism bureau) has partnered with several professional property managers specifically to help festival hosts with licensing, guest services, and listings.

  3. Wait for the city's notification of approved dates. Because the license only activates during city-approved Special Festival Events, you'll get an email once the city formally designates the 2027 Sundance dates as one only then can you actually advertise and rent.

  4. List and collect only within your approved window, then pay Boulder's short-term rental accommodations tax on any nights the property is rented.

A couple of practical notes:

  • Check your HOA rules first. A festival license doesn't override HOA restrictions on short-term rentals. If your HOA doesn't currently allow it, you may need a vote of the homeowners to change that.

  • Every advertisement must include your license number, the same as with a standard STR listing.

  • If you already hold a standard short-term rental license, you don't need a separate festival license your existing STR license already covers the 29-day (or shorter) rental window.

Application deadline to know

Processing can take several weeks. Boulder County's Sundance planning guide advises that a complete application should be submitted by November 1, 2026 to have the best shot at approval before the festival begins in January 2027. Given how far in advance festival bookings tend to happen, earlier is meaningfully better than later.

Don't forget: jurisdiction matters

This is the part that trips a lot of people up. "Boulder" isn't one set of rules it's several overlapping ones:

  • City of Boulder: Has the new Festival Lodging Rental License described above, plus its standard STR license.

  • Unincorporated Boulder County: Has no festival-specific license. Instead, standard Short-Term Rental and Vacation Rental licenses here are valid for two years, so a license obtained now would still be active during the January 2027 festival. Insurance must be maintained for the full two-year term, not just the rental period.

  • Surrounding towns: Longmont, Louisville, Lafayette, Erie, Superior, Nederland, Ward, and the Town of Lyons each set their own rules independently, and several (including Louisville and Superior) have separately approved festival-period short-term rentals.

If your property sits outside Boulder city limits, contact that specific municipality directly rather than assuming the city's festival license applies to you.

The standard Boulder STR license, for comparison

If you live in your Boulder home full-time and want the flexibility of a rental license that isn't tied only to the festival, the regular short-term rental license is still worth knowing:

  • Must be your principal residence (more than half the year), proven with a Colorado driver's license or ID at that address

  • Owner must be a natural person, trust, or nonprofit — not an LLC, corporation, or limited partnership

  • Applicant must hold at least 50% ownership

  • Requires two local contacts within 60 minutes of the property, in addition to the owner

  • Property can't be a permanently affordable/deed-restricted unit

  • New application fee is $215, with a $190 rental license application fee

  • Licenses run for a four-year term, with an annual affidavit and fee due each year to stay valid

  • No inspection required; owners self-certify smoke detectors, CO detectors, and other safety equipment

Bottom line

If you own a home in Boulder even one that's never qualified for short-term rentals before the new Festival Lodging Rental License gives you a real, legal path to renting it out for up to 29 days around Sundance 2027. If you're a renter, you can now do the same with your landlord's written OK. And if you're house-hunting in the area with an eye toward festival income, remember that the rules (and the licensing body) change the moment you cross from Boulder city limits into the county or a neighboring town.

Given that applications can take several weeks to process and the city recommends having a complete application in by November 1, 2026, this is a "start now" situation rather than a "wait and see" one.

Official resources and application links

Rules, fees, and deadlines are subject to change as the city finalizes its 2027 festival designation and licensing details. Confirm current requirements directly with the City of Boulder Rental Housing Licensing program (RentalHousingLicensing@bouldercolorado.gov) or Boulder County Community Planning & Permitting before applying.

Kristen Naylor
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