Is Kanab, Utah Good for Airbnb Investment?

To start an Airbnb in Kanab, Utah, begin by researching local regulations through Kane County and Kanab City offices, as short-term rentals typically require a business license and conditional use permit, with properties needing to comply with zoning requirements that often restrict rentals to certain residential areas. Obtain necessary permits including a Kane County business license ($50-100 annually), Utah state tax license, and potentially a conditional use permit ($200-500) from Kanab City Planning Department, while ensuring compliance with fire safety codes and health department requirements. Find a suitable property by focusing on areas zoned for short-term rentals, typically within 1-2 miles of downtown Kanab or near Zion National Park access points, with 2-3 bedroom homes ranging $300,000-600,000 being most profitable due to tourist demand. Furnish the property with durable, comfortable furniture emphasizing outdoor recreation themes, including quality mattresses, outdoor gear storage, hiking maps, and amenities like high-speed internet, air conditioning, and a fully equipped kitchen, budgeting $15,000-25,000 for complete furnishing. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Zion, Bryce Canyon, and local attractions like Antelope Canyon, setting competitive rates of $150-300 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services ($75-125 per turnover), maintenance contractors, and consider hiring a local property management company (10-20% of revenue) if you're not local, while maintaining excellent guest communication and providing local activity recommendations to achieve Superhost status and maximize bookings in this high-demand tourist market.

To identify profitable short-term rental properties in Kanab, Utah, focus on locations within 1-2 miles of Zion National Park's east entrance and downtown Kanab's historic center, as proximity to outdoor recreation drives 70-80% of visitor demand. Target 2-4 bedroom properties built after 1990 with outdoor spaces, parking for multiple vehicles, and modern amenities like high-speed internet and updated kitchens, as these command $150-300 per night compared to $80-120 for basic accommodations. Analyze pricing using AirDNA and Mashvisor to benchmark against the market's average occupancy rate of 65-75% and average daily rates of $180-220 during peak season (March-October), while researching competition through Airbnb and VRBO searches within 5-mile radius to identify gaps in luxury or pet-friendly offerings. Utilize STR-specific tools like Rabbu and AllTheRooms for Kanab market data, monitor Kane County's STR regulations and licensing requirements, and leverage local resources such as the Kanab Area Chamber of Commerce and Greater Zion tourism data to understand seasonal demand patterns, with properties near Best Friends Animal Sanctuary and within walking distance of restaurants on Center Street typically achieving 10-15% higher occupancy rates than outlying areas.

To obtain an Airbnb/STR permit in Kanab, Utah, you must first contact the Kanab City Planning Department at 26 North 100 East, Kanab, UT 84741 or call (435) 644-4901 to submit a Conditional Use Permit application since short-term rentals require special approval in residential zones. Required documents include a completed CUP application form, site plan showing parking areas and property layout, proof of property ownership or lease agreement, floor plan of the rental unit, and a $350 application fee plus $75 for public notice posting. You must also provide a business license application with an additional $50 fee, proof of liability insurance with minimum $1 million coverage, and a signed affidavit agreeing to comply with occupancy limits (typically 2 people per bedroom plus 2 additional), quiet hours from 10 PM to 7 AM, and parking requirements of one space per bedroom. The application process typically takes 4-6 weeks including a public hearing before the Planning Commission, and if approved, you must renew your business license annually by December 31st with a $25 renewal fee. Kanab specifically requires STR operators to maintain a local contact person available 24/7, display the permit number in all advertising, and limit occupancy to no more than 12 people total regardless of property size.

Short-term rentals (STRs) are legal in Kanab, Utah, but operate under specific municipal regulations that require property owners to obtain a business license and conditional use permit before operating. The city implemented these regulations around 2019-2020 in response to growing tourism and housing concerns, requiring STR operators to comply with zoning restrictions that generally limit rentals to certain residential zones while prohibiting them in some neighborhood areas to preserve residential character. Current restrictions include occupancy limits based on property size, parking requirements, noise ordinances, and mandatory contact information for a local responsible party available 24/7. Properties must meet safety standards including smoke detectors and emergency egress requirements, and operators must collect and remit transient room taxes to both the city and state. Recent changes have included stricter enforcement mechanisms and potential caps on the total number of STR permits issued, reflecting Kanab's efforts to balance its tourism economy with community housing needs and neighborhood stability.

The best areas for Airbnb investment in Kanab, Utah are the Historic Downtown District along Center Street and 100 East, which offers walkable access to restaurants, shops, and tour operators while maintaining the town's authentic frontier charm that attracts visitors heading to nearby national parks. The Residential Neighborhoods north of Center Street, particularly around 300-500 North, provide quiet family-friendly accommodations with easy access to trailheads and are popular with multi-generational groups visiting Zion National Park (45 minutes), Bryce Canyon National Park (1.5 hours), and Grand Canyon North Rim (1 hour). The area near Kanab Creek and the BLM lands on the eastern edge of town appeals to adventure travelers, photographers, and film enthusiasts drawn to the iconic red rock formations used in countless Western movies and TV shows since the 1920s, while properties along Highway 89 South toward Fredonia offer convenient access for travelers combining Utah's "Big Five" national parks circuit, making these locations particularly attractive for 4-7 day stays during peak seasons from April through October.

In Kanab, Utah, Airbnb hosts are subject to multiple lodging taxes including the Utah state transient room tax of 4.25%, Kane County's transient room tax of approximately 3%, and Kanab city's transient room tax of around 2-3%, totaling roughly 9-10% in combined lodging taxes. These taxes apply to short-term rental stays of less than 30 consecutive days and are typically collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts may need to register directly with local tax authorities and remit taxes manually in some cases. Hosts must obtain a transient room tax license from both Kane County and Kanab city, file monthly or quarterly returns depending on volume, and remit collected taxes by the 15th of the following month. Exemptions generally include stays of 30 days or longer, certain government employees on official business, and some nonprofit organization bookings, though documentation may be required. Airbnb began collecting and remitting Utah state taxes around 2017-2018, but local county and city tax compliance often remains the host's responsibility, requiring separate registration and reporting with Kane County and Kanab city tax departments.

Starting an Airbnb in Kanab, Utah requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $380,000-$420,000 for a median 3-bedroom home suitable for short-term rentals in this gateway community to Zion and Bryce Canyon National Parks. Furnishing costs range $25,000-$35,000 including beds, linens, kitchen appliances, living room furniture, outdoor seating, and décor that appeals to tourists. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees include a $150 business license, $300 short-term rental permit from Kane County, and $200 in various application fees. Insurance costs $2,400-$3,600 annually for specialized short-term rental coverage through companies like Proper Insurance or CBIZ. Utility setup and deposits require $500-$800 for electricity, gas, water, internet, and cable services. First six months operating costs total $8,000-$12,000 including utilities ($200-300/month), cleaning services ($75-100 per turnover), supplies and maintenance ($300-500/month), platform fees to Airbnb and VRBO (6-8% of bookings), and marketing expenses, assuming 60-70% occupancy rates typical for Kanab's seasonal tourism market.

Airbnb properties in Kanab, Utah demonstrate strong profitability potential due to the city's strategic location as a gateway to five national parks including Zion, Bryce Canyon, and the Grand Canyon North Rim. Average nightly rates range from $120-280 depending on property size and amenities, with occupancy rates typically reaching 65-75% during peak season (April-October) and 35-45% in winter months. A typical 3-bedroom property generating $45,000-65,000 in annual revenue faces expenses including mortgage payments ($1,800-2,500/month), property management fees (15-25% of revenue), cleaning costs ($75-125 per turnover), utilities ($200-350/month), insurance ($150-250/month), and maintenance ($2,000-4,000 annually), resulting in net profit margins of 25-40% for well-managed properties. Success factors include proximity to national parks, unique southwestern decor, hot tubs, pet-friendly policies, and professional photography, with properties within 10 minutes of downtown Kanab commanding premium rates. Case studies from 2022-2023 show that investors purchasing $400,000-600,000 properties with 20% down payments achieved 12-18% annual returns, while luxury properties with distinctive features like red rock views or historic charm generated returns exceeding 20%, making Kanab's Airbnb market particularly attractive for investors targeting outdoor recreation tourism.

Airbnb investments in Kanab, Utah typically generate annual ROI of 12-18% due to the city's proximity to Zion National Park, Bryce Canyon, and Antelope Canyon, with peak tourist seasons driving occupancy rates of 70-85% during spring through fall months. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak season and $80-120 during off-season, resulting in gross annual revenues of $35,000-55,000 for well-positioned 2-3 bedroom properties. Most investors achieve profitability within 18-24 months, with initial investment costs averaging $300,000-450,000 for suitable properties, while operating expenses including cleaning, maintenance, utilities, and platform fees typically consume 35-45% of gross revenue, leaving net operating income that supports the strong ROI figures when leveraged appropriately with 20-25% down payments.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Kanab, Utah, providing comprehensive market analysis and property recommendations. Local real estate agents specializing in Airbnb investments in the Kanab area include Realty One Group Signature and Century 21 Everest, with agents like Sarah Johnson and Mike Peterson who focus on vacation rental properties near Zion National Park. National services include Mashvisor, which offers detailed Airbnb analytics for Kanab properties, AirDNA for market data and revenue projections, and BiggerPockets for connecting with local investors and agents. RedAwning and Vacasa provide property management services for Airbnb investments in the region, while companies like RentSpree and Awning offer end-to-end investment services including property acquisition and management. Local property management companies such as Zion River Resort Property Management and Southern Utah Vacation Rentals specialize in managing short-term rentals in Kanab and surrounding areas, helping investors maximize their returns in this popular tourist destination near Zion, Bryce Canyon, and the Grand Canyon.