Boulder is opening homes to Sundance visitors through a new license – who stands to benefit?

The upcoming Sundance Film Festival in Boulder, Colorado, from January 21, 2027, is expected to attract tens of thousands of visitors, which could strain the city's lodging capacity. Boulder has traditionally had restrictive rules around short-term rentals, but in April 2026, the city introduced a new rental license to temporarily expand who can offer short-term lodging during the festival.

This policy allows second homes and tenant-occupied properties to enter the lodging market, potentially broadening the sources of lodging income and spreading visitor spending across more neighborhoods. By allowing non-primary residences to be rented, the policy could add more than 1,000 festival rentals by 2027, complementing the existing short-term rental licenses.

The new policy aims to support Boulder's economy, reduce traffic and emissions from out-of-town visitors, and preserve most homes primarily for residents. The benefits of the festival are not solely confined to lodging. According to a 2025 report, Sundance visitors in Utah spent over $160 million, but the distribution of these economic benefits is not straightforward.

While some revenue may flow to local suppliers, it could also be offset by visitors displacing other tourists or causing residents to shift their spending. The new short-term rental policy in Boulder could be particularly advantageous for hosts, allowing them to capture some of the income that would typically go to hotels. This could lead to increased local economic activity for those who participate in the festival rental market.