Executive summary
Colorado is experiencing significant regulatory tightening, with Buena Vista implementing a temporary moratorium on new STR licenses through September 2026 following an earlier cap ordinance, effectively closing the market to new entrants for at least eight months. Summit County is opening a waitlist for Type II licenses in the Snake River Basin starting January 20, 2026, but placement on the waitlist doesn't guarantee approval, creating uncertainty for prospective buyers in that area. Arizona is seeing renewed legislative pressure with bipartisan bills that would allow cities to cap vacation rental numbers, impose spacing buffers between properties, and extend enforcement timelines for problem rentals—though existing operators would be grandfathered. Meanwhile, property owners in both Park Township and Dearborn, Michigan, have filed federal lawsuits challenging local STR bans in residential zones, with Dearborn's January 1, 2026 restrictions confining rentals to specific business districts only.
New Regulations
Buena Vista, Colorado
Published: January 16, 2026
Regulation Category: Licensing
Summary: The Buena Vista Board of Trustees approved a temporary moratorium on new short-term rental licenses (lasting until September 2026, potentially liftable earlier) to review and refine policies following an October 2025 cap ordinance, amid around 193 active Vrbo listings in the area. This pauses new STR entries to address regulatory issues and gather stakeholder input, potentially restricting expansion opportunities for investors in the near term.
Source: Buena Vista Trustees Pass Temporary Short Term Rental License Moratorium
Summit County, Colorado
Published: January 12, 2026
Regulation Category: Licensing
Summary: Summit County is opening a waitlist for Type II short-term rental licenses in the Snake River Basin (the third basin after Lower Blue and Upper Blue), requiring property owners to apply starting January 20, 2026, at 8 a.m. MST with a $75 non-refundable fee, proof of closed sale and Certificate of Occupancy, and eligibility only for properties within the defined basin boundaries. Placement on the waitlist does not guarantee a license, potentially limiting or delaying new STR operations in this area.
Source: Snake River Basin Short-Term Rental License Waitlist Opens January 20, 2026
Developing Regulations
Arizona (Statewide)
Published: January 16, 2026
Regulation Category: Licensing, Occupancy (caps/buffers)
Summary: Arizona legislators are proposing two bipartisan bills: one to extend the timeframe for cities to revoke licenses from problem STR properties beyond the current one-year/three-violation limit, and another to allow cities to cap the number of vacation rentals and impose buffers between properties, while grandfathering existing rentals. These potential changes could increase enforcement and limit expansion in high-tourism areas, affecting investor growth and operational flexibility.
Source: Arizona lawmakers revive short-term rental reform bills to curb nuisance homes
Park Township, Michigan
Published: January 15, 2026
Regulation Category: Zoning, Occupancy
Summary: Property owners have filed a federal lawsuit challenging Park Township's ban on short-term rentals (28 days or fewer) in residential areas, which restricts them to the C-2 Resort Commercial District and has been upheld in prior court rulings, with claims of unconstitutional vagueness and lost income/property value. This ongoing litigation could potentially overturn or modify the long-standing prohibition (since 1974), impacting current and prospective STR investors in residential zones.
Source: Lakeshore community sued over short-term rental ban
Dearborn, Michigan
Published: January 16, 2026
Regulation Category: Zoning, Occupancy
Summary: Property owners have filed a federal lawsuit challenging Dearborn's new short-term rental restrictions (effective January 1, 2026, banning STRs in residential zones and single-family homes while allowing them only in specific business districts), citing violations of due process, unconstitutional takings, and interference with contracts. If successful, the suit could invalidate the rules passed in July 2025, which aim to curb nuisances but significantly limit STR viability in residential areas for investors.
Source: Dearborn sued for short-term rental restrictions