Blue River STR Update: Proposed Changes Take Shape After 2026 Moratorium
DRAFT REGULATIONS: The proposed 20% cap, 175-night limit, 3-night minimum and new occupancy rules are not currently in effect.
If you own a property in Blue River or are considering buying one for short-term rental use, there has been a lot of STR news to follow this year.
After implementing an emergency STR licensing moratorium in May 2026, the Town of Blue River spent the summer and fall reviewing its short-term rental program. We now have the clearest picture yet of what the new regulations could look like.
The most important thing to know:
The new regulations discussed below are still proposed. They are NOT currently in effect.
The Town's October materials include a comprehensive draft of a replacement STR ordinance. The Board is continuing to review the proposal before final adoption.
Why Did Blue River Implement a Moratorium?
On May 19, Blue River enacted an emergency moratorium on new and renewal STR licenses while the Town reviewed its existing program and considered changes to licensing, density and enforcement.
The moratorium did not shut down existing legal STRs. Properties with valid, compliant licenses have been allowed to continue operating.
Since then, the Board has held a series of work sessions to develop a new long-term STR framework.
What Is Being Proposed?
The latest draft includes several significant changes:
20% STR cap within six zones
Blue River would be divided into six STR zones, with licensed STRs generally limited to 20% of eligible properties within each zone.
Grandfathering for existing licenses
Existing compliant STR license holders would generally be able to renew without being subject to the new 20% zone cap. This could make maintaining an existing license particularly important.
175-night annual rental limit
STRs would be limited to a maximum of 175 rented nights per license year.
Three-night minimum stay
The draft would establish a three-night minimum reservation, eliminating one- and two-night stays.
New occupancy limits
Maximum overnight occupancy would generally be limited to two people per approved bedroom.
New licenses and waitlists
If a zone reaches its 20% cap, new licenses would generally be placed on a waitlist until capacity becomes available.
Two-year licensing cycle
The proposal would also move Blue River toward a two-year STR licensing cycle.
Are These Rules in Effect Now?
No.
The 20% caps, 175-night annual limit, three-night minimum stay and revised occupancy rules are proposed regulations, not current Blue River STR requirements.
The comprehensive replacement ordinance is scheduled for a public hearing and potential Board approval on October 20, 2026. Until the Town formally adopts new regulations, buyers and owners should not treat the draft provisions as final.
The existing moratorium remains particularly important for properties that do not already have an active STR license.
What Does This Mean for Buyers and Owners?
For existing licensed STR owners, the proposed grandfathering provisions are significant. If the ordinance is ultimately adopted substantially as drafted, existing compliant licenses would generally be protected from the new zone caps.
For buyers considering an unlicensed property, we recommend caution. A buyer should not assume that an STR license will automatically become available when the current moratorium ends. Future eligibility could depend on the property's STR zone and whether that zone has reached its cap.
What Happens Next?
Blue River's STR regulations have evolved considerably since the emergency moratorium began in May. The direction is becoming clearer, but the final rules have not yet been adopted.
The October 20 Board of Trustees meeting is an important next step, with the comprehensive replacement STR ordinance scheduled for public hearing and potential approval.
We are continuing to follow the process closely and will update this post as soon as the Town formally adopts new regulations.
Last updated: October 19, 2026
STR regulations are subject to change and eligibility can vary by property. This article is intended as a general overview, not legal advice or a guarantee that a property will qualify for an STR license. Contact The BuyBreck Team with questions regarding the Blue River STR Moratorium.
