The STR Math Nobody Advertises
Every mountain real estate listing that mentions rental income is advertising gross revenue. Nobody advertises net yield. The gap between the two is where the investment thesis either holds or falls apart, and that gap varies enormously across the six markets in this network.
What follows is an honest breakdown of STR performance by market, including the regulatory environment each market carries. Some of these markets have strong STR economics. Some have challenging regulatory trajectories. Knowing the difference before you acquire is the entire point of independent analysis.
Figures below reflect approximate 2024-2025 data from AirDNA, Rabbu, and local property manager disclosures. STR performance varies significantly by property type, location within market, management quality, and pricing strategy. These are market-level benchmarks, not guarantees. Net yield calculations assume professional management (25-30% of gross), HOA where applicable, insurance, maintenance, and financing costs where relevant.
Aspen: High Revenue, Low Yield
Aspen generates the highest average nightly rates of any market in this network, frequently $1,500-$5,000+ per night for quality product during ski season and the summer festival calendar. The problem is that these rates exist because the acquisition price is also the highest, and Aspen's STR regulatory environment has grown significantly more restrictive over the past several years.
| Metric | Aspen |
|---|---|
| Avg Nightly Rate (Peak) | $1,800-$5,000+ |
| Avg Nightly Rate (Annual) | $950-$2,200 |
| Occupancy Rate (Annual) | 52-64% |
| Annual Gross Revenue (typical unit) | $85,000-$220,000 |
| Estimated Net Yield on Purchase Price | 0.8-1.4% |
| STR Regulation Risk | High and increasing |
The conclusion on Aspen is straightforward: buyers who acquire in Aspen for STR income will be disappointed. Buyers who acquire for lifestyle and treat STR income as partial offset of carrying costs can make the model work. The market is not an STR investment vehicle. It is a wealth preservation and lifestyle asset that generates some income.
Park City: The Strongest STR Market in the Network
Park City combines high nightly rates, strong year-round occupancy (both ski season and summer Sundance/outdoor recreation demand), relatively manageable HOA structures in the right buildings, and a regulatory environment that, while tightening, remains more workable than Aspen or Jackson.
| Metric | Park City |
|---|---|
| Avg Nightly Rate (Peak) | $650-$2,500 |
| Avg Nightly Rate (Annual) | $420-$850 |
| Occupancy Rate (Annual) | 62-74% |
| Annual Gross Revenue (typical unit) | $65,000-$160,000 |
| Estimated Net Yield on Purchase Price | 2.8-4.2% |
| STR Regulation Risk | Moderate, manageable |
"Park City is the market where the STR investment thesis actually pencils at scale. The combination of access, year-round demand, and price point creates a yield profile no other luxury mountain market can match."
The key variable in Park City is location within market. Canyons Village and the Deer Valley area generate premium nightly rates but carry higher HOA costs. Old Town properties offer strong STR income but require active management given older building stock. Empire Pass slopeside product generates the highest per-night rates but has the most restrictive HOA environments.
Telluride: Strong Revenue, Limited Permit Supply
Telluride generates exceptional nightly rates during peak season (Christmas-New Year, Presidents Week, spring break) and strong summer festival demand. The challenge is that Telluride has implemented a cap on STR permits, meaning not all properties can be legally operated as short-term rentals. Buyers must verify permit availability before acquisition if STR income is part of the thesis.
| Metric | Telluride |
|---|---|
| Avg Nightly Rate (Peak) | $900-$3,500 |
| Avg Nightly Rate (Annual) | $580-$1,100 |
| Occupancy Rate (Annual) | 48-58% |
| Annual Gross Revenue (typical unit) | $70,000-$175,000 |
| Estimated Net Yield on Purchase Price | 1.2-2.1% |
| STR Permit Status | Capped, verify before buying |
Properties that already carry an active STR permit command a meaningful price premium in Telluride. If STR income is part of your acquisition thesis, factor the permit status into your offer price negotiation and your due diligence checklist from day one.
Big Sky: Best Regulatory Environment, Growing Revenue
Big Sky is the most STR-permissive market in this network. Gallatin County has not implemented the restrictive STR caps that Aspen, Telluride, and Jackson have moved toward, and the base village development is actively driving occupancy rates higher as the destination matures. For the STR investor who wants to be in front of the revenue curve, Big Sky is the most compelling setup in the network.
| Metric | Big Sky |
|---|---|
| Avg Nightly Rate (Peak) | $450-$1,800 |
| Avg Nightly Rate (Annual) | $280-$580 |
| Occupancy Rate (Annual) | 55-68% |
| Annual Gross Revenue (typical unit) | $42,000-$110,000 |
| Estimated Net Yield on Purchase Price | 2.4-3.8% |
| STR Regulation Risk | Low currently, watch trajectory |
The risk in Big Sky's STR environment is not current restriction but future trajectory. As the market matures and permanent resident population grows, regulatory pressure on STR activity will likely increase. Buyers entering now have the permissive environment on their side; buyers entering in five to seven years may not.
Stowe: Solid Northeast STR Market With Seasonal Concentration
Stowe's STR performance is driven by two distinct seasons: ski season (December through March) and fall foliage (September through October). Summer demand exists but is less robust than Western markets. The concentration of revenue into roughly eighteen weeks means that off-season carrying costs must be managed carefully.
| Metric | Stowe |
|---|---|
| Avg Nightly Rate (Peak Ski) | $400-$1,400 |
| Avg Nightly Rate (Annual) | $250-$520 |
| Occupancy Rate (Annual) | 48-60% |
| Annual Gross Revenue (typical unit) | $38,000-$95,000 |
| Estimated Net Yield on Purchase Price | 2.1-3.4% |
| STR Regulation Risk | Low to moderate |
Stowe's STR advantage for the Northeast buyer is a function of its drive-market positioning. A professional in Boston can visit their Stowe property to handle maintenance, oversee a turnover, or simply use it mid-week in a way that is impossible with a Western mountain property. Lower travel overhead makes the operational burden of STR ownership meaningfully more manageable.
Jackson Hole: Trophy Revenue, Increasing Restriction
Jackson Hole generates exceptional peak-season revenue, particularly for slopeside Teton Village product. The problem is that Teton County has moved aggressively on STR regulation, implementing a cap and permit system that limits new STR licenses and has created a tiered system between existing operators and new entrants.
| Metric | Jackson Hole |
|---|---|
| Avg Nightly Rate (Peak) | $800-$4,000+ |
| Avg Nightly Rate (Annual) | $520-$1,200 |
| Occupancy Rate (Annual) | 50-62% |
| Annual Gross Revenue (typical unit) | $75,000-$200,000 |
| Estimated Net Yield on Purchase Price | 1.1-2.0% |
| STR Permit Status | Restricted, verify before buying |
The Jackson buyer primarily focused on STR yield faces the same structural challenge as the Aspen STR buyer: the acquisition price is too high relative to net revenue for the math to work as a pure investment. Properties with existing STR permits command premiums. For buyers who want Jackson primarily for its lifestyle and Wyoming tax advantages, with STR income as offset, the model can work.
The Summary: Where Each Market Fits the STR Thesis
- Park City: Strongest STR investment case in the network. Best yield, strong occupancy, manageable regulation.
- Big Sky: Best risk-adjusted entry for STR investors. Permissive regulation, growing revenue, lower acquisition cost.
- Stowe: Solid Northeast STR market. Best for owners who will use and self-manage part of the year.
- Telluride: Strong revenue potential, but verify permit status before buying. Permit adds value.
- Jackson Hole: STR as income offset, not primary thesis. Wyoming tax advantage is the investment story.
- Aspen: Not an STR investment vehicle. Wealth preservation and lifestyle asset with incidental rental income.
If STR yield is a primary factor in your mountain acquisition decision, start with Park City or Big Sky and work backward from there. If lifestyle and appreciation are primary with STR income as a secondary consideration, the full network is in play.
