Is Bountiful, Utah Good for Airbnb Investment?

To start an Airbnb in Bountiful, Utah, begin by researching local regulations as Bountiful requires short-term rental operators to obtain a business license and conditional use permit from the city planning department, with properties needing to be owner-occupied or have an on-site property manager within 1000 feet. Contact Bountiful City Hall at 790 South 100 East to apply for the necessary permits, which typically cost around $200-400 annually and require neighborhood notification and planning commission approval. Find a suitable property in residential zones that comply with the city's requirement of adequate parking (minimum 2 spaces) and ensure it meets safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Furnish the space with quality furniture, linens, kitchen essentials, and local touches highlighting Utah's outdoor recreation opportunities, budgeting approximately $5,000-15,000 for a complete setup. List your property on Airbnb and VRBO with professional photos showcasing mountain views and proximity to attractions like Lagoon Amusement Park (10 minutes away) and downtown Salt Lake City (20 minutes), setting competitive rates around $80-150 per night based on local market analysis. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guests, and ensuring compliance with Bountiful's noise ordinances and occupancy limits, while considering hiring local cleaning services like those found through Davis County networks and potentially using property management companies such as RedAwning or Vacasa if you need assistance with day-to-day operations.

For identifying profitable short-term rental properties in Bountiful, Utah, focus on locations within 15-20 minutes of major ski resorts like Powder Mountain and Snowbasin, properties with mountain or valley views, and homes near recreational areas such as the Bountiful Ridge Golf Course or hiking trails in the Wasatch Mountains. Target 3-4 bedroom properties built after 1990 with modern amenities, outdoor spaces, hot tubs, and mountain cabin aesthetics that appeal to both winter sports enthusiasts and summer outdoor recreation visitors. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates ($150-300 depending on season and property size), occupancy rates (typically 60-75% in peak seasons), and seasonal demand patterns, with winter months (December-March) and summer months (June-September) showing highest profitability. Research competition by analyzing similar properties within a 5-mile radius, studying their pricing strategies, amenities, and guest reviews on Airbnb and VRBO, while identifying gaps in the market such as pet-friendly options or properties that accommodate larger groups. Utilize tools like Rabbu, AllTheRooms, and local MLS data combined with Bountiful city short-term rental regulations and permit requirements, while leveraging Utah-specific STR management companies and local real estate agents familiar with the Davis County vacation rental market to identify emerging neighborhoods and investment opportunities.

To obtain an Airbnb/STR permit in Bountiful, Utah, you must first contact the Bountiful City Planning Department at City Hall located at 790 South 100 East to determine if short-term rentals are permitted in your specific zoning district, as the city has restrictions on STRs in residential areas. You'll need to submit a conditional use permit application which requires a completed application form, site plan showing the property layout, proof of property ownership or authorization letter from owner, floor plans indicating the rental space, parking plan demonstrating adequate off-street parking, and a neighborhood notification list with addresses of properties within 300 feet. The application fee is approximately $500-800 plus additional fees for public notices and hearings. Required documents also include a business license application, proof of liability insurance (minimum $1 million), fire safety inspection certificate, and a management plan detailing how the property will be operated including noise control measures, guest capacity limits, and 24-hour contact information. The process typically takes 60-90 days and includes a public hearing before the Planning Commission where neighbors can provide input. Once approved, you must obtain a business license from the city clerk's office for an additional $50-100 annually, comply with all building and fire codes, limit occupancy to no more than 2 guests per bedroom plus 2 additional guests, provide adequate parking spaces, and maintain the property according to city standards while ensuring quiet hours are observed between 10 PM and 7 AM.

Short-term rentals (STRs) are legal in Bountiful, Utah, but operate under specific municipal regulations that were updated around 2020-2021. The city requires STR operators to obtain a business license and conditional use permit, with properties limited to owner-occupied dwellings or properties where the owner lives within a certain distance. Bountiful restricts STRs in certain residential zones and requires compliance with parking requirements, occupancy limits (typically 2 people per bedroom plus 2 additional), and noise ordinances. The city prohibits STRs in some high-density residential areas and requires a minimum separation distance between STR properties. Recent changes have included stricter enforcement mechanisms and clearer definitions of what constitutes a short-term rental, with the city requiring annual renewals and allowing for neighbor complaints to trigger reviews of permits.

The best areas for Airbnb investment in Bountiful, Utah include the historic downtown district near Main Street and 500 South, which attracts visitors interested in the city's heritage and proximity to local restaurants and shops. The neighborhoods near Bountiful Ridge Golf Course on the east side are highly desirable due to golf tourism and scenic mountain views, particularly appealing to leisure travelers. Areas close to the Bountiful Temple, especially around 400 North and 200 West, draw religious tourists and visitors to LDS events year-round. The Mueller Park area offers excellent potential due to its proximity to hiking trails and outdoor recreation, attracting adventure tourists and families visiting nearby attractions. Properties near the South Davis Recreation Center and Bountiful City Park perform well due to sports tournaments and family events. The neighborhoods along Orchard Drive and surrounding areas benefit from business travelers working in nearby Salt Lake City who prefer quieter suburban accommodations, while still being within 20 minutes of downtown Salt Lake City and the airport, making these areas particularly attractive for both leisure and business travelers seeking mountain views and small-town charm.

Airbnb properties in Bountiful, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 4.25% and Davis County's transient room tax of approximately 3%, totaling around 7.25% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018-2019 for Utah jurisdictions. Airbnb remits these collected taxes directly to the Utah State Tax Commission and Davis County on behalf of hosts on a monthly basis. However, hosts are still required to register for tax permits with both the state and county, file regular returns (even if showing zero liability when Airbnb collects), and maintain proper records of all rental activity. Properties rented for 30 days or longer are generally exempt from transient lodging taxes, and some jurisdictions may provide exemptions for stays by government employees or certain long-term medical patients, though hosts should verify current exemption criteria with local tax authorities as regulations can change.

To start an Airbnb in Bountiful, Utah, the total costs would be approximately $520,000-$580,000. Property purchase represents the largest expense at $450,000-$500,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-bedroom home including furniture, bedding, kitchenware, and decor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs including professional photography, listing creation, and basic supplies total around $2,000-$3,000. Permits and fees vary but generally include business license ($100-$200), short-term rental permit ($200-$500), and potential HOA approval fees. Insurance costs approximately $1,500-$2,500 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-$800 initially. First six months of operating costs including utilities ($200-$300/month), cleaning supplies and services ($150-$250/month), maintenance reserves ($100-$200/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total approximately $4,000-$6,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Bountiful, Utah typically generate annual revenues of $18,000-$35,000 for entire homes and $8,000-$15,000 for private rooms, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue), insurance ($800-$1,200 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher-end homes near hiking trails and ski resorts achieving the upper range due to Bountiful's proximity to outdoor recreation areas and Salt Lake City's downtown district. Success factors include strategic pricing during peak ski season (December-March) and summer hiking months (June-September), maintaining 4.8+ star ratings through consistent cleanliness and local amenities information, and targeting the growing market of remote workers and outdoor enthusiasts who appreciate Bountiful's suburban setting with mountain access. Properties within walking distance of Bountiful's historic downtown area and those offering mountain views command premium rates, with some hosts reporting occupancy rates of 65-80% and annual profits exceeding $12,000 after all expenses on modest 3-bedroom homes purchased for investment purposes around 2019-2022.

Airbnb investments in Bountiful, Utah typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Salt Lake City and seasonal tourism patterns. Properties in Bountiful benefit from year-round demand due to nearby ski resorts like Snowbird and Alta during winter months (December-March) and summer outdoor recreation activities, with average daily rates of $85-120 depending on property size and amenities. Initial profitability usually occurs within 18-24 months for well-positioned properties, with vacation rental management companies like Vacasa and RedAwning reporting occupancy rates of 65-75% annually in the greater Salt Lake County area. The market shows particular strength during Sundance Film Festival season and summer months when families visit nearby national parks, with investors typically seeing break-even on their initial investment within 2-3 years assuming 20-25% down payments on properties valued between $400,000-600,000 in the Bountiful market.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Bountiful, Utah. Local real estate agents like those at Coldwell Banker Realty and RE/MAX Associates have experience with investment properties in the Bountiful area since around 2018. National services include Mashvisor, which provides Airbnb analytics for Utah markets, and BiggerPockets, which connects investors with local professionals in the Salt Lake City metro area including Bountiful. AirDNA offers market data and rental performance analytics for the Bountiful market, while companies like RedAwning and Awning provide property management services for Airbnb investors. Local investment-focused agents at KW Commercial and Equity Real Estate have been helping clients identify profitable short-term rental opportunities in Davis County since approximately 2019. Roofstock and Arrived Homes are national platforms that occasionally feature Utah investment properties, and local property management companies like Utah Life Property Management and SLC Property Management offer specialized Airbnb management services for investors purchasing in the Bountiful area.