Is Midway, Utah Good for Airbnb Investment?

To start an Airbnb in Midway, Utah, begin by researching local regulations through Wasatch County and Midway City offices, as this resort town near Park City has specific short-term rental ordinances requiring business licenses and potentially conditional use permits depending on zoning. Contact Wasatch County at (435) 654-3211 and Midway City at (435) 654-3223 to obtain the necessary permits, which typically include a business license ($50-100), conditional use permit if required ($200-500), and compliance with fire safety and health department inspections. Find a suitable property by purchasing or leasing in residential zones that allow short-term rentals, focusing on areas near Homestead Resort or Soldier Hollow, with average property prices ranging $400,000-800,000 for suitable homes. Furnish the property with mountain-themed decor, quality linens, full kitchen amenities, outdoor furniture for the scenic setting, and winter/summer recreational equipment, budgeting $15,000-30,000 for complete furnishing. List your property on Airbnb, VRBO, and other platforms with professional photography highlighting mountain views and proximity to activities like skiing, hot springs, and Midway Swiss Days festival, setting competitive rates of $150-400 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, coordinating with local cleaning services ($75-150 per turnover), installing keyless entry systems, providing 24/7 guest communication, and maintaining compliance with occupancy limits and noise ordinances that are strictly enforced in this close-knit community of approximately 5,000 residents.

To identify profitable short-term rental properties in Midway, Utah, focus on locations within 1-2 miles of Deer Creek Reservoir and Homestead Resort, as these areas attract year-round visitors for water activities and hot springs. Target 3-4 bedroom properties with mountain or water views, hot tubs, game rooms, and ski equipment storage, as Midway's proximity to Park City ski resorts drives winter demand. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $200-400 per night depending on size and amenities, with peak rates during Sundance Film Festival (January) and summer recreation season. Research competition by studying the top 20 STR listings in Midway on Airbnb and VRBO, noting their occupancy rates, pricing strategies, and guest reviews to identify market gaps. Utilize tools like Rabbu and AllTheRooms for Midway-specific market data, while partnering with local property managers familiar with Wasatch County regulations and seasonal tourism patterns. Properties near the Midway Swiss Days festival grounds and within walking distance of Main Street restaurants typically command premium rates, and consider homes built after 2000 with updated kitchens and reliable internet for remote workers who extend stays.

To obtain an Airbnb/STR permit in Midway, Utah, you must first contact the Midway City Planning Department at City Hall located at 160 West Main Street or call (435) 654-3223 to request a Conditional Use Permit application for short-term rentals. Required documents typically include a completed application form, property deed or lease agreement, site plan showing parking areas, floor plan of the rental unit, proof of liability insurance (minimum $1 million), contact information for a local property manager if you're not local, and a good neighbor agreement outlining house rules. The application fee is approximately $350-500, with additional fees for public hearings if required. Submit your complete application to the Planning Department, which will schedule a public hearing before the Planning Commission within 30-45 days. The Planning Commission will review your application considering factors like neighborhood compatibility, parking availability, and compliance with residential zoning requirements. If approved, you'll receive your Conditional Use Permit, but you must also obtain a business license from Midway City (approximately $50-75 annually) and register with Wasatch County for transient room tax collection. Midway specifically requires STRs to maintain residential character, provide adequate off-street parking (typically 2 spaces minimum), limit occupancy to 2 people per bedroom plus 2 additional guests, maintain quiet hours from 10 PM to 8 AM, and have a local contact person available 24/7 within 30 minutes of the property. The entire process typically takes 60-90 days from application submission to final approval, and permits must be renewed annually with the city.

Short-term rentals (STRs) are legal in Midway, Utah, but operate under specific regulations established by the city. Midway requires STR operators to obtain a conditional use permit and business license, with properties subject to occupancy limits, parking requirements, and noise restrictions. The city has implemented zoning restrictions that limit STRs in certain residential areas to preserve neighborhood character, particularly in historic districts and areas with smaller lot sizes. Recent changes in 2022-2023 included stricter enforcement of existing regulations and enhanced penalties for violations, with the city requiring annual permit renewals and regular inspections. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and emergency egress requirements, while operators must provide 24-hour contact information and respond to complaints within two hours. The city has also established a cap on the total number of STR permits available and requires a minimum separation distance between STR properties in residential zones.

The best areas for Airbnb investment in Midway, Utah are the Heber Valley/Deer Creek Reservoir district, downtown Midway near Main Street, and the Wasatch Mountain foothills neighborhoods. The Deer Creek Reservoir area attracts year-round visitors for boating, fishing, and water sports during summer months and ice fishing in winter, with properties offering lake views commanding premium rates. Downtown Midway provides easy access to the Swiss Days festival (September), Soldier Hollow for cross-country skiing and biking, and the Ice Castles winter attraction, making it ideal for tourists seeking walkable access to local restaurants and shops. The foothills neighborhoods near Wasatch Mountain State Park offer luxury cabin-style properties that appeal to families and groups visiting for hiking, golfing at Wasatch Mountain Golf Course, and accessing nearby Park City (15 minutes) and Sundance Resort (20 minutes) for skiing and entertainment. These areas benefit from Midway's position as a gateway to outdoor recreation while offering more affordable alternatives to Park City accommodations, with strong demand from Salt Lake City residents (45 minutes away) seeking weekend retreats and tourists using Midway as a base for exploring multiple Utah destinations.

Airbnb properties in Midway, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 4.25% and Wasatch County's transient room tax of approximately 3-4%, totaling around 7-8% in combined occupancy taxes. These taxes apply to short-term rental 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 in Utah around 2018-2019. Airbnb then remits these taxes monthly to the appropriate state and local tax authorities on behalf of hosts, though individual hosts remain responsible for ensuring compliance and may need to register with Utah State Tax Commission and Wasatch County if they collect taxes independently. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may provide exemptions for stays by government employees or certain business travelers, though specific exemption criteria should be verified with local tax authorities as regulations can change.

To start an Airbnb in Midway, Utah, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 based on median home prices in this popular Park City area resort town. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials run $1,000-$2,000. Permits and fees vary but budget $500-$1,500 for business licenses, short-term rental permits, and any required inspections from Summit County. Insurance costs approximately $2,000-$3,000 annually for short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable total around $500-$1,000. First six months of operating costs including utilities ($300-$500 monthly), cleaning services ($75-$150 per turnover), supplies and maintenance ($200-$400 monthly), and platform fees (3% of bookings) typically range $8,000-$15,000 depending on occupancy rates and seasonal demand in this ski and recreation destination market.

Airbnb properties in Midway, Utah demonstrate strong profitability potential, with average nightly rates ranging from $150-400 depending on property size and amenities, generating annual revenues of $35,000-85,000 for well-managed properties. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, plus utilities, insurance, and supplies, totaling approximately 40-50% of gross revenue. Properties near Deer Creek Reservoir and Homestead Resort command premium rates, particularly during ski season (December-March) and summer recreation months, with occupancy rates averaging 65-75% annually. Success factors include proximity to outdoor recreation, hot tubs or unique amenities, professional photography, and responsive hosting, with luxury cabins and homes with mountain views achieving profit margins of 35-45% after all expenses. Case studies from 2022-2023 show 4-bedroom properties grossing $75,000 annually with net profits around $30,000, while smaller 2-bedroom units generate $45,000 gross with $20,000 net profit, making Midway's Airbnb market particularly attractive due to its year-round appeal for both winter sports enthusiasts visiting nearby Park City and summer visitors enjoying Heber Valley activities.

Airbnb investments in Midway, Utah typically generate annual ROI of 12-18% due to the area's proximity to Park City ski resorts and Deer Valley, with properties averaging $350-500 per night during peak winter season (December-March) and $200-300 during summer months. Cash-on-cash returns generally range from 8-14% annually, with higher-end properties near Soldier Hollow and Wasatch Mountain State Park achieving the upper range. Most investors reach profitability within 18-24 months, assuming 60-70% annual occupancy rates and initial investments of $80,000-120,000 for property acquisition and renovation. Properties within 15 minutes of major ski access points and those featuring hot tubs or mountain views command premium rates, with some luxury cabins generating up to 20% ROI during strong tourism years. The market benefits from year-round demand driven by winter sports, summer recreation at Jordanelle Reservoir, and corporate retreats, though investors should expect seasonal cash flow variations with winter months producing 40-50% of annual revenue.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Midway, Utah, offering comprehensive market analysis and property recommendations. Local real estate agents serving the Midway area include Realtypath Utah, Summit County Realty Group, and Heber Valley Real Estate, who have expertise in vacation rental properties around the Deer Valley and Park City regions. National services like Awning, RedAwning, and AirDNA provide market data, property management, and investment analysis specifically for short-term rental properties in ski resort communities like Midway. Local property management companies such as Utah Mountain Escapes, Park City Property Management, and Heber Valley Vacation Rentals offer turnkey solutions for investors looking to purchase and operate Airbnb properties in the area. Additional services include Mashvisor for investment property analysis, BiggerPockets for networking with local investors, and specialized vacation rental brokers like VTrips and Vacasa who also assist with property acquisition in mountain resort markets throughout Utah's Wasatch County region.