Colorado STR intelligence, from the field.

Buying an STR investment property without proper market data is like buying a stock without looking at the financials. AirDNA and Rabbu are the two most widely used tools for STR market research.

AirDNA: The Market Intelligence Tool

AirDNA aggregates data from millions of Airbnb and VRBO listings to provide market-level and property-level analytics. Key metrics to pull for any Colorado market: Average Daily Rate (ADR) by property type and bedroom count, occupancy rate by month and season, Revenue per available room (RevPAR), supply growth (how many new listings are entering the market), and demand growth (how total booking nights are trending).

Pull the "Market Overview" for your target area. Look at the last 12-24 months of data, not just the most recent period. Pay attention to supply growth — a market where supply is growing faster than demand will see ADR and occupancy compression over time.

Rabbu: The Property-Level Tool

Rabbu focuses on property-level revenue estimates. Enter a specific address and it will estimate annual revenue based on comparable active listings. It's particularly useful for comparing revenue estimates for specific properties you're evaluating and stress-testing your underwriting assumptions.

The underwriting framework

Use the 25th percentile of comparable properties in AirDNA, not the median. This gives you a conservative floor. Factor in management fee (20-25% of gross revenue), operating expenses (cleaning, supplies $1,500-$3,000/year, utilities $3,000-$6,000/year, insurance $2,000-$4,000/year, maintenance reserve 3-5% of property value annually), and debt service.

What good looks like

In Colorado's current market (2026), a well-underwritten STR investment should target a Gross Revenue Yield of 8-14% of purchase price, Cash-on-Cash Return of 4-8% (after debt service), and a Cap Rate of 5-8%.

The most common underwriting mistake

Using the top-performing comparable properties as your revenue assumption. AirDNA shows you the best performers. Your property, in its first year, will likely perform at the 25th-50th percentile. Underwrite accordingly.

Ready to put this into practice for your property? Get a free, no-obligation revenue projection.