Is Cedar City, Utah Good for Airbnb Investment?

To start an Airbnb in Cedar City, Utah, begin by researching local regulations through the Cedar City Planning Department, as the city requires short-term rental permits and compliance with zoning ordinances that typically allow STRs in residential zones with proper licensing. Contact Cedar City at (435) 586-2953 to obtain a business license and short-term rental permit, which costs approximately $100-200 annually and requires property inspections for safety compliance. Find a suitable property by searching areas near Southern Utah University or close to Zion National Park access points, with average property prices ranging $300,000-500,000 for investment properties. Furnish the space with quality furniture, linens, and amenities focusing on outdoor recreation gear storage and local tourism needs, budgeting $15,000-25,000 for a complete setup. Create your Airbnb listing with professional photos highlighting proximity to national parks, university, and local attractions, setting competitive rates around $80-150 per night based on seasonal demand. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain Utah state tax compliance including transient room tax collection, and consider property management companies like RedAwning or Vacasa if you're not local, though many Cedar City hosts successfully self-manage due to the city's manageable size and strong tourism market driven by Zion National Park, Bryce Canyon proximity, and Southern Utah University events.

To identify profitable short-term rental properties in Cedar City, Utah, focus on locations within 10-15 minutes of Southern Utah University campus and Zion National Park gateway areas, particularly properties near Main Street's historic district and neighborhoods like Canyon View and Three Peaks. Target 2-4 bedroom homes or condos built after 1990 with outdoor spaces, parking, and mountain/red rock views, as these appeal to both university visitors and national park tourists. Conduct pricing analysis using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $80-150 per night depending on size and amenities, with peak seasons during SUU events and summer park visits generating 65-75% occupancy rates. Research competition through Airbnb and VRBO searches within 5-mile radius, noting that Cedar City has approximately 150-200 active STRs with higher demand than supply due to limited hotel inventory. Utilize tools like Rabbu, STR Helper, and local MLS data through Realtor.com, while connecting with Cedar City economic development office and local property management companies like Red Rock Property Management for market insights, ensuring compliance with city zoning regulations that generally permit STRs in residential areas with proper licensing.

To obtain an Airbnb/STR permit in Cedar City, Utah, you must first contact the Cedar City Planning Department at 10 North Main Street or call (435) 586-2953 to begin the conditional use permit application process, as short-term rentals require special approval in most residential zones. Required documents typically include a completed conditional use permit application, site plan showing parking areas and property layout, proof of property ownership or authorization letter from owner, business license application, and a $350-500 application fee for the conditional use permit plus approximately $100-150 for the business license. The process generally takes 4-6 weeks and requires a public hearing before the Planning Commission, where neighbors are notified and can provide input. Cedar City specific requirements include maintaining adequate off-street parking (typically 2 spaces minimum), ensuring the property meets all building and fire codes, obtaining a business license from the city clerk's office, displaying the permit number in all advertising, maintaining a local contact person available 24/7 for issues, and adhering to occupancy limits based on bedrooms and square footage. You must also comply with Utah state tax requirements by registering with the Utah State Tax Commission for transient room tax collection, and some properties may need additional inspections from the fire department or building department before final approval.

Short-term rentals (STRs) are legal in Cedar City, Utah, but operate under specific municipal regulations that require property owners to obtain a business license and conditional use permit before operating. The city allows STRs in most residential zones but prohibits them in certain historic districts and requires compliance with parking requirements, occupancy limits based on bedroom count, and noise ordinances. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators must provide 24-hour contact information and maintain guest registries. Cedar City implemented stricter enforcement measures around 2019-2020 following complaints about party houses and parking issues, requiring annual renewals and imposing penalties for violations including potential permit revocation. The city also requires STR operators to collect and remit transient room taxes, and properties cannot be operated as event venues or wedding locations without additional permits, reflecting Cedar City's balance between supporting tourism revenue and protecting residential neighborhood character.

The best Airbnb investment areas in Cedar City, Utah include the Historic Downtown District near Main Street, which attracts tourists visiting nearby Zion National Park (45 minutes away) and Bryce Canyon National Park (1.5 hours away), plus benefits from Southern Utah University events and theater productions at the Utah Shakespeare Festival held annually from June through October. The neighborhoods near Southern Utah University campus are excellent for accommodating visiting families during graduation ceremonies, sports events, and academic conferences, while also serving outdoor enthusiasts year-round. The areas around Cedar Canyon and Coal Creek offer scenic mountain views and attract visitors seeking proximity to outdoor recreation including hiking, mountain biking, and winter sports at nearby Brian Head Resort (30 minutes away). Properties near the Cedar City Regional Airport and along the I-15 corridor capture business travelers and those using Cedar City as a base camp for exploring Utah's "Big Five" national parks, with the city serving as a strategic midpoint between Las Vegas and Salt Lake City, making it attractive for road trip travelers and outdoor adventure seekers throughout the year.

In Cedar City, Utah, Airbnb hosts are subject to both state and local lodging taxes that must be collected from guests and remitted to tax authorities. The Utah state transient room tax is 4.25% and applies to all short-term rental stays under 30 consecutive days, while Cedar City imposes an additional local transient room tax of approximately 3-4% on lodging accommodations. These taxes are calculated on the total room rate excluding cleaning fees but including any additional charges for extra guests or amenities. Airbnb automatically collects and remits the state portion of the tax in Utah through their platform, but hosts are typically responsible for registering with Iron County and Cedar City to collect and remit local taxes directly, usually on a monthly or quarterly basis depending on volume. Tax remittance is generally due by the 15th of the month following the collection period, and hosts must maintain detailed records of all bookings and tax collections. There are limited exemptions for stays exceeding 30 consecutive days, certain government employees on official business, and some nonprofit organization bookings, though documentation is required to qualify for these exemptions.

To start an Airbnb in Cedar City, Utah, the total costs would be approximately $385,000-$425,000. Property purchase represents the largest expense at $320,000-$350,000 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 setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$2,500. Permits and fees in Cedar City include business license ($100-$200), short-term rental permit ($300-$500), and potential HOA approval fees totaling $500-$1,000. Insurance for short-term rentals costs $2,000-$3,000 annually, with the first year paid upfront. Utility deposits and connections for electricity, gas, water, internet, and cable run $800-$1,200. First six months of operating costs including utilities ($200/month), cleaning supplies and services ($150/month), maintenance reserves ($100/month), property management software ($50/month), and marketing ($100/month) total approximately $3,600. Additional considerations include potential property improvements or repairs ($5,000-$10,000) and working capital for unexpected expenses, bringing the comprehensive startup investment to the $385,000-$425,000 range.

Airbnb properties in Cedar City, Utah demonstrate strong profitability potential with average nightly rates ranging from $85-150 depending on property size and proximity to Zion National Park and Southern Utah University. A typical 3-bedroom home generates approximately $35,000-45,000 in annual revenue with occupancy rates of 65-75%, while operating expenses including cleaning fees ($75-100 per turnover), property management (15-25% of revenue), utilities ($200-300 monthly), insurance ($1,500-2,500 annually), and maintenance average $18,000-25,000 yearly, resulting in net profit margins of 35-55%. Success factors include strategic location within 30 minutes of Zion National Park, modern amenities like hot tubs and game rooms, professional photography, and responsive guest communication. Properties near SUU campus perform particularly well during graduation weekends and sporting events, with some hosts reporting peak monthly revenues exceeding $6,000 during summer months when tourism peaks. The market benefits from Cedar City's position as a gateway to Utah's "Big Five" national parks, creating consistent demand from outdoor enthusiasts and families, though winter months typically see 40-50% lower occupancy requiring hosts to budget accordingly for seasonal fluctuations.

Airbnb investments in Cedar City, Utah typically generate annual ROI of 12-18% due to the city's proximity to Zion National Park and Bryce Canyon National Park, driving strong seasonal tourism demand. Cash-on-cash returns generally range from 8-14% annually, with properties near outdoor recreation areas and downtown performing at the higher end of this range. Most investors achieve profitability within 18-24 months, with peak earning months occurring during spring through fall when tourism is highest. The average daily rate for Airbnb properties in Cedar City ranges from $85-150 depending on property size and amenities, with occupancy rates typically reaching 65-75% during peak season and 35-45% during winter months. Properties requiring minimal renovation can reach break-even within 12-15 months, while those needing significant improvements may take 24-30 months to achieve positive cash flow, though the overall market appreciation of 4-6% annually in Cedar City's real estate market contributes to long-term investment returns.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Cedar City, Utah. Local real estate agents like those at Coldwell Banker Premier Realty and Century 21 Everest have experience with investment properties in the Cedar City market, particularly given the area's proximity to national parks and outdoor recreation. RedAwning and AirDNA provide market analysis and property identification services for short-term rental investments in southern Utah markets including Cedar City. Mashvisor offers investment property analysis tools that cover Cedar City's rental market data and ROI projections. Local property management companies like Iron County Property Management and Southern Utah Property Solutions can assist with identifying properties suitable for Airbnb conversion. BiggerPockets marketplace and forums connect investors with Cedar City-area professionals experienced in short-term rental investments. Awning and Hostfully provide comprehensive services from property identification to management setup for Airbnb investors entering the Cedar City market, which benefits from tourism to nearby Zion National Park, Bryce Canyon, and Cedar Breaks National Monument.