A town's creative way for homeowners to tap into the short-term rental market could be a blueprint for others

Festival brings a lodging challenge

Boulder is set to replace Park City as the host of the Sundance Film Festival for the next decade. The college town is expecting roughly 100,000 visitors, while its hotels offer only 3,000 rooms.

To help meet demand, local government is making room for short-term rentals tied to the festival. Residents hope to host film enthusiasts and use the income to offset some mortgage payments.

Pricing expectations may run high

Some homeowners are considering five-figure prices for festival stays. Their expectations may not match what their homes can justify, raising the prospect of disappointment once listings meet the market.

A temporary alternative to investment

Boulder’s model could show how residents might earn money from platforms such as Airbnb without using up housing for permanent rentals. The approach centers on specific events rather than keeping homes in the short-term rental pool year-round.

Vacation homes that once seemed like a nearly foolproof real-estate investment have become difficult to sell, James previously reported. Event-based hosting could offer a middle ground: residents can earn from visitors without leaving properties empty for much of the year.