Originally published November 2025. Updated March 2026.
2026 Update: What's Changed Since This Was Published
Boulder has continued refining how the Festival Lodging Rental License will function ahead of Sundance 2027, and several important updates have clarified eligibility and participation.
- Applications are now open for future festival events
- The City has confirmed that the license is limited to 29 days per year during approved festival periods
- Official Sundance dates (Jan 21-31, 2027) and venues have been announced, confirming a city-wide footprint across Downtown, CU Boulder, and surrounding neighborhoods
- Ongoing discussions and proposed updates may expand participation, including potential flexibility for additional property types and rental scenarios
These updates provide more clarity around how homeowners can participate and reinforce the importance of preparing early.
Boulder's New Festival Lodging Rental License
With the Sundance Film Festival arriving in Boulder in 2027, the city has introduced a new permit designed specifically for festival periods, the Festival Lodging Rental License. Applications are now open, and for many Boulder homeowners, this marks the first real opportunity to legally participate in short-term, event-driven rentals.
What is the Festival Lodging Rental License?
The Festival Lodging Rental License is a new, event-specific rental permit that allows Boulder homeowners to rent their property for up to 29 days a year only during city-approved, multi-day festivals - most notably, the Sundance Film Festival which comes to Boulder starting in 2027. The license is separate from Boulder's traditional short-term rental permit, and comes with far more flexibility.
Who can Apply for a Festival Lodging Rental License?
Unlike Boulder’s short-term rental rules, which require the home to be your primary residence, the Festival Lodging Rental License:
- Allows second-home owners to rent
- Allows investment properties to rent
- Does not require owner occupancy
- Does not require the owner to live in Boulder
In other words, many properties that have historically not been eligible for short-term rental activity may now qualify for this limited, festival-only window. You still must apply before listing your property, and you must include your license number in all advertisements. But the ownership limitations are dramatically more flexible.
However, participation still depends on meeting city licensing requirements, as well as any applicable HOA rules, occupancy limits, and safety standards. While the ownership limitations are significantly more flexible, not every property will automatically qualify.
How This Differs from Boulder’s Short-Term Rental Rules
The Festival Lodging Rental License is fundamentally different from Boulder’s traditional short-term rental regulations.
- Short-term rentals require the home to be a primary residence
- The Festival Lodging Rental License does not require owner occupancy
- The license is limited to city-approved festival periods only rather than year-round use
- Only one rental license type is allowed per unit at a time under current rules
This structure allows the city to expand lodging capacity during high-demand events like Sundance while maintaining its broader housing policies.
How to Apply for a Festival Lodging Rental License
Applications for the Festival Lodging Rental License are now open through the City of Boulder. As part of your application, you will need to obtain a business license, sign required affidavits for ownership, safety, and occupancy, and pay the application fees. Here are some details about what you can expect from this application process:
- Application processing may take 1-2 weeks
- The Festival Lodging Rental application fee is $190
- The Business License application fee is $25/unit
Why This Matters for Boulder Homeowners
Sundance is one of the world’s most significant film festivals, expected to bring tens of thousands of visitors to Boulder annually, major press, filmmakers, creatives, and industry leaders. Hotel capacity in Boulder is limited, and festival visitors prefer walkable, design-forward homes close to venues.
For homeowners, this creates three major opportunities:
- Increased short-term income potential: During Sundance in Park City, nightly rates often climbed 3-5× higher than normal. With Boulder’s existing rental inventory already tight, festival-week pricing could be extremely strong, especially for homes near CU and Downtown.
- An opportunity for non-primary residents: Owners of second homes or investment properties may now rent within this specific festival window.
- Elevated long-term property value: Homes in walkable, centrally located neighborhoods already command a premium in Boulder. With Sundance’s arrival, demand and national attention could increase even further in certain areas.
Boulder Neighborhoods That May Benefit Most from Sundance
- Downtown: Walkability to restaurants, venues, hotels, and Pearl Street makes this area the most conventionally “festival-friendly.” High demand, limited supply.
- University Hill: Close to CU’s performance and lecture spaces, which are ideal for screenings and panels. Perfect for festival-goers wanting quick access to campus venues.
- Chautauqua: Historic cottages and foothill views appeal to visitors wanting a scenic, retreat-like stay while remaining close to the action.
- Whittier: Quiet, charming, and centrally located - this area is walkable to Pearl Street and a likely favorite for longer festival stays.
- Mapleton Hill: Large, luxurious homes with historic character provide a space for visitors to host. The proximity to Downtown and beloved trails also add strong appeal.
Should You Consider Applying?
For homeowners evaluating whether to participate, the decision will come down to a few key factors:
- Location and proximity to confirmed festival venues
- Whether your property meets licensing and HOA requirements
- Your willingness to manage a short-term rental or work with a property manager
- Your goals, whether that is short-term income, long-term appreciation, or both
The Bottom Line for Boulder Homeowners
With official dates, venues, and licensing details now in place, many Boulder homeowners can begin evaluating how their property might fit into a high-demand, event-driven rental market. Applications for the Festival Lodging Rental License are now open, and early preparation will be key for those looking to take advantage of festival demand.
If you’d like to talk through strategy, neighborhood positioning, or how this could impact your home’s value, we’re happy to be a resource.
