Verraros quickly became a celebrity in the American gay press because of a controversy that erupted when it was reported that Fox Broadcasting Company made him remove his online journal that included discussion of his homosexuality in the summer of 2002. However, Jim Verraros later stated that "it wasn't because I was gay. It was because they thought I was trying to gain more votes and have that little extra edge." While Verraros was out to fellow contestants and Idol employees, he did not mention his homosexuality on air. Following the end of the show and the subsequent tour, Verraros came out publicly in an article in The Advocate. On September 6, 2009, Verraros married his boyfriend Bill Brennan in a small ceremony in Illinois. They made it legal on July 24, 2011 in New York.
Verraros released his album Unsaid and Understood (2004) through the indie label Red Queen Music - Sound Axis. It won the 2004 Outmusic Award for Outstanding New Recording - Debut Male.
The album was revamped and picked up by Koch Records and released as Rollercoaster (2005), Verraros' mainstream debut, which garnered several dance floor hits, including the Top 25 Billboard Hot Club/Dance Chart hit "You Turn It On." The album was produced and co-written by Los Angeles-based singer/songwriter Gabe Lopez and features four songs co-written by American Idol finalist Angela Peel. The album had a limited release deal through Koch Records.
On May 27, 2009, Verraros released two new singles "Touch (Don't U Want 2)" and "Electric Love" from his third album Do Not Disturb. Both songs were produced and written by Gabe Lopez.