Is Draper, Utah Good for Airbnb Investment?

To start an Airbnb in Draper, Utah, begin by researching local regulations as Draper requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow STRs in residential zones with restrictions on occupancy and parking. Contact Draper City Hall at 801-576-6500 to obtain the necessary business license (approximately $50-100 annually) and ensure your property meets safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property by purchasing or leasing in residential areas like SunCrest, Corner Canyon, or Steep Mountain, ensuring it has adequate parking and complies with HOA restrictions if applicable. Furnish the space with quality furniture, linens, kitchen essentials, and amenities like WiFi, focusing on mountain-modern décor that appeals to visitors coming for nearby outdoor activities at Corner Canyon or Lone Peak. Create your Airbnb listing with professional photos highlighting mountain views and proximity to skiing (30 minutes to multiple resorts), hiking trails, and Salt Lake City (20 minutes), setting competitive rates around $80-150 per night depending on size and amenities. Manage your property by establishing cleaning protocols between guests, maintaining responsive communication, providing local recommendations for Thanksgiving Point, Loveland Living Planet Aquarium, and outdoor recreation, while monitoring reviews and adjusting pricing seasonally to maximize occupancy during peak ski season and summer hiking months.

To identify profitable short-term rental properties in Draper, Utah, focus on locations within 15-20 minutes of major ski resorts like Snowbird and Alta, near hiking trails such as Corner Canyon, or close to tech corridors given the area's proximity to Silicon Slopes companies like Adobe and eBay. Target 3-4 bedroom single-family homes or townhomes built after 2000 with mountain views, outdoor spaces, hot tubs, and modern amenities that appeal to both business travelers and vacation guests. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds traditional rental income by 40-60%, typically ranging from $150-300 per night depending on size and location. Research competition by analyzing existing Airbnb and VRBO listings within a 2-mile radius, identifying gaps in amenities or underserved areas, and monitor occupancy rates which average 65-75% annually in Draper's market. Utilize tools like Rabbu for Utah-specific market data, connect with local real estate agents familiar with STR regulations, and leverage the Utah Association of Realtors MLS system while staying informed about Draper City's short-term rental ordinances and permit requirements through their planning department.

To obtain an Airbnb/STR permit in Draper, Utah, you must first contact the Draper City Planning Department at 1020 East Pioneer Road to determine if your property is located in a zone that allows short-term rentals, as they are typically restricted to specific residential zones. Submit an application through the city's online portal or in-person, providing required documents including a completed STR permit application, proof of property ownership or lease agreement with landlord consent, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million), a floor plan of the rental unit, contact information for a local property manager if you live more than 60 minutes away, and payment of applicable fees which typically range from $200-400 annually. You must also obtain a business license from the city clerk's office for approximately $50-75, ensure compliance with fire safety requirements including smoke and carbon monoxide detectors, provide adequate off-street parking (usually 2 spaces minimum), and maintain occupancy limits based on bedrooms and square footage. The approval process generally takes 4-6 weeks after submitting a complete application, and permits must be renewed annually with the city conducting periodic inspections to ensure ongoing compliance with zoning, safety, and operational requirements.

Short-term rentals (STRs) are legal in Draper, Utah, but operate under specific municipal regulations that require property owners to obtain a conditional use permit and business license before operating. The city allows STRs in residential zones but imposes restrictions including occupancy limits based on property size, parking requirements (typically two spaces per unit), and noise ordinances to protect neighborhood character. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers, while owners must provide 24-hour contact information and respond to complaints within one hour. Draper prohibits STRs in certain residential areas where homeowners associations have specific restrictions, and the city has implemented a cap on the total number of STR permits to prevent oversaturation. Recent changes around 2022-2023 included stricter enforcement mechanisms, increased permit fees, and enhanced neighbor notification requirements during the application process, reflecting the city's effort to balance tourism revenue with residential community concerns.

The best areas for Airbnb investment in Draper, Utah include the Suncrest and SunCrest neighborhoods in the foothills, which offer stunning mountain views and proximity to hiking trails like Corner Canyon, attracting outdoor enthusiasts and families seeking scenic accommodations. The South Mountain area near 13400 South provides excellent access to both Snowbird and Alta ski resorts (30-40 minutes), making it ideal for winter sports tourists, while also being close to Thanksgiving Point in Lehi for year-round events and attractions. The Steep Mountain neighborhood offers luxury appeal with larger homes suitable for group rentals, capitalizing on corporate retreats and family gatherings drawn to the area's upscale feel and mountain recreation access. Areas near the Draper Historic Park and downtown Draper provide charm and walkability while maintaining easy access to Silicon Slopes tech companies in nearby Lehi and Draper, attracting business travelers working at companies like Adobe, Microsoft, and various startups. The neighborhoods around Corner Canyon Regional Park are particularly attractive due to the world-class mountain biking trails that draw enthusiasts from across the region, especially during spring through fall seasons.

Airbnb properties in Draper, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 4.25% and Salt Lake County's transient room tax of 1%, totaling approximately 5.25% in occupancy taxes. These taxes apply to short-term rentals 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. Airbnb remits these collected taxes directly to the Utah State Tax Commission and Salt Lake County on a monthly basis, though individual hosts may still need to register with local tax authorities and file returns even when Airbnb collects the taxes. Draper city itself may impose additional business licensing requirements but generally follows the county tax structure. Exemptions typically include stays of 30 days or longer, certain government and military travelers, and some nonprofit organization bookings, though documentation may be required to qualify for these exemptions.

To start an Airbnb in Draper, Utah, the total costs would be approximately $650,000-$750,000. Property purchase represents the largest expense at around $550,000-$600,000 based on median home prices in Draper as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 3-4 bedroom home including furniture, bedding, kitchen supplies, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations or improvements total approximately $3,000-$5,000. Permits and fees in Utah County include business license ($100-$300), short-term rental permits ($200-$500), and potential HOA approval processes. Insurance for short-term rentals costs roughly $2,000-$3,500 annually, significantly higher than standard homeowner's insurance. Monthly utilities including electricity, gas, water, internet, and cable average $250-$400 per month, totaling $1,500-$2,400 for six months. First six months operating costs encompass utilities, Airbnb service fees (3% host fee), cleaning services between guests ($75-$150 per turnover), maintenance reserves, supplies replenishment, and marketing expenses, totaling approximately $8,000-$12,000 depending on occupancy rates and property size.

Airbnb properties in Draper, Utah typically generate annual revenues between $25,000-$45,000 for well-positioned homes, with average daily rates ranging from $120-$180 depending on property size and amenities. Operating expenses generally consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% if outsourced), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Properties near Draper's outdoor recreation areas like Corner Canyon or those offering mountain views command premium rates, with some luxury homes achieving 65-75% occupancy rates and net profit margins of 25-35%. Success factors include proximity to Silicon Slopes tech companies for business travelers, ski resort access during winter months, and hiking trail accessibility, with properties featuring hot tubs, mountain views, and modern amenities typically outperforming basic listings by 20-30%. The market benefits from Draper's affluent demographics and limited hotel inventory, though competition has intensified since 2019 with over 200 active Airbnb listings in the area, making property differentiation and professional management increasingly critical for maintaining profitability above the 20% net margin threshold.

Airbnb investments in Draper, Utah typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's proximity to Silicon Slopes tech companies like Adobe, eBay, and Vivint, plus outdoor recreation access to ski resorts and hiking trails. Properties near Draper City Park and Corner Canyon areas command premium nightly rates of $150-250, with occupancy rates averaging 65-75% annually due to consistent business travel and tourism demand. Initial profitability usually occurs within 18-24 months for well-positioned properties, with investors seeing break-even on renovations and furnishing costs by month 20-30. The market benefits from Draper's median home appreciation of 8-12% annually since 2019, Salt Lake City International Airport accessibility, and limited short-term rental supply due to HOA restrictions in many neighborhoods, creating opportunities for investors who secure compliant properties in zones allowing STRs with gross rental yields typically reaching 10-14% before expenses.

STRSearch leads the market in Airbnb investment property analysis nationwide including Draper, Utah, providing comprehensive market data and profitability projections. Local Draper specialists include Summit Sotheby's International Realty agents like Sarah Mitchell and David Park who focus on short-term rental investments, while Coldwell Banker Residential Brokerage has dedicated STR investment teams. KW Commercial in Salt Lake City serves the Draper market with agents specializing in investment properties. National services include Awning (formerly RedAwning) which offers full-service Airbnb property acquisition and management, Mashvisor for market analysis and property recommendations, and AirDNA for revenue optimization data. Local property management companies like Utah Mountain Escapes and Wasatch Vacation Rentals also assist investors in identifying profitable properties. Real estate investment firms such as Roofstock and Arrived Homes occasionally feature Draper properties, while local mortgage brokers like Mountain West Financial and Academy Mortgage specialize in investment property financing for short-term rentals in the Utah County area.