City Officials Estimate the Policy Could Add More Than 1,000 Festival Rentals by 2027, on Top of Existing Short-term Rental Licenses

Boulder, Colorado, is opening homes to Sundance Film Festival visitors through a new Festival Lodging Rental License, a policy that could broaden who earns lodging income and spread visitor spending across more neighborhoods. The license, created in April 2026, temporarily expands short-term rental rules for the festival, which begins Jan. 21, 2027. It allows second homes and tenant-occupied properties to offer lodging, capped at 29 days per year, operating only during a city-approved window covering 10 days before and nine days after the event.

City officials estimate the policy could add more than 1,000 festival rentals by 2027, on top of existing short-term rental licenses. Boulder has roughly 2,900 hotel rooms and 685 standard short-term rental licenses, according to city council documents. Sundance reported 85,472 in-person attendees in Utah in 2025, including nearly 28,000 out-of-state visitors.

The policy aims to support Boulder's economy and reduce traffic and emissions from visitors staying outside the city. One early listing exceeded $60,000 for 10 nights, as reported by CBS Colorado. Sundance's move was supported by a Colorado law offering up to $34 million in refundable tax credits from 2027 to 2036, reducing state revenue. Sundance's 2025 report estimated out-of-state visitors spent over $160 million in Utah, but tourism economists warn gross spending doesn't measure local benefits, which include wages, local business profits, and tax revenue, offset by potential displacement of other tourists or resident spending shifts.