Is Moab, Utah Good for Airbnb Investment?

To start an Airbnb in Moab, Utah, begin by researching local regulations through the City of Moab Planning Department, as the city requires short-term rental permits and has specific zoning restrictions limiting STRs to certain residential areas while prohibiting them in some neighborhoods. Obtain a business license from Utah's Department of Commerce (approximately $70) and register for state and local taxes including Utah's transient room tax (4.25%) and Grand County's lodging tax (3%). Find a suitable property in permitted zones, considering that Moab properties typically range from $400,000-$800,000 for homes suitable for vacation rentals, with many investors purchasing properties near Arches or Canyonlands National Parks. Apply for Moab's short-term rental permit through the city (fees around $200-400 annually) which requires property inspections, parking compliance, and neighbor notification. Furnish the property with durable, outdoor-adventure themed décor suitable for guests visiting for hiking, mountain biking, and national park tours, budgeting $15,000-30,000 for a complete furnishing package. List your property on Airbnb, VRBO, and local platforms, setting competitive rates that typically range $150-400 per night depending on size and location, with peak seasons being spring and fall when weather is optimal for outdoor activities. Manage the property by either self-managing or hiring local companies like Moab Lodging Solutions or Red Rock Property Management (10-20% of revenue), ensuring compliance with city noise ordinances, occupancy limits, and maintaining relationships with neighbors in this tight-knit community where tourism impact is closely monitored.

To identify profitable short-term rental properties in Moab, Utah, focus on locations within 10-15 minutes of Arches and Canyonlands National Parks, particularly properties along Highway 191, Spanish Valley, or the Castle Valley area, as proximity to outdoor recreation drives 85% of bookings in this market. Target 2-4 bedroom properties with outdoor amenities like hot tubs, fire pits, and mountain or red rock views, ensuring adequate parking for trucks and trailers since adventure travelers often bring equipment. Pricing analysis should benchmark against comparable properties using AirDNA and Mashvisor, with peak season rates (March-May, September-October) typically 40-60% higher than off-season, averaging $200-400 per night for quality properties. Competition research reveals over 800 active STRs in Moab as of 2023, so differentiation through unique features, professional photography, and exceptional guest experience is crucial. Utilize STR-specific tools like Rabbu for Moab market data, monitor occupancy rates through AirDNA (successful properties maintain 65-75% annual occupancy), and leverage local resources like the Moab Area Travel Council for tourism trends and the Grand County planning department for zoning regulations, as STR permits are required and some areas have restrictions on new licenses.

To obtain an Airbnb/STR permit in Moab, Utah, you must apply through the City of Moab Planning Department located at 217 E Center Street or online through their permitting portal. Required documents include a completed Conditional Use Permit application, property deed or lease agreement, floor plans showing maximum occupancy, parking plan demonstrating two off-street spaces per unit, waste management plan, emergency contact information for a local representative within 60 minutes of the property, and proof of liability insurance. The application fee is approximately $500 plus a $200 annual renewal fee, with additional fees for inspections around $150. The timeline typically takes 60-90 days including a public hearing before the Planning Commission, neighbor notification period, and final approval process. Specific Moab requirements include maximum occupancy of two people per bedroom plus two additional guests, mandatory local contact person available 24/7, compliance with parking requirements (no street parking for guests), adherence to noise ordinances with quiet hours from 10 PM to 7 AM, proper waste collection arrangements, and annual safety inspections. Properties must also meet all building and fire codes, display the permit number prominently, and maintain a guest registry for city inspection upon request.

Short-term rentals (STRs) are legal in Moab, Utah, but operate under strict regulations implemented by the city to manage tourism impacts and housing availability. As of 2023, Moab requires STR operators to obtain a conditional use permit and business license, with properties limited to a maximum occupancy based on bedrooms and square footage. The city has established zones where STRs are prohibited, including certain residential areas, and requires properties to meet specific parking, noise, and safety standards. Recent changes include stricter enforcement mechanisms, increased permit fees, and enhanced neighbor notification requirements during the application process. Properties must also comply with fire safety codes, maintain 24/7 local contact information, and adhere to quiet hours typically from 10 PM to 8 AM. The city has been actively updating its STR ordinances since 2020 to balance the economic benefits of tourism with community concerns about housing shortages and neighborhood character, with ongoing discussions about potential caps on the total number of STR permits allowed within city limits.

The most lucrative Airbnb investment areas in Moab, Utah include the Downtown Historic District near Main Street, which offers walkability to restaurants, shops, and tour operators while maintaining proximity to Arches National Park (5 miles) and Canyonlands National Park (32 miles). The Millcreek Drive area provides upscale accommodations with red rock views and quick access to popular hiking trails like Corona Arch, attracting premium-paying guests year-round. The Spanish Valley neighborhood, located south of downtown, offers larger properties with mountain and valley views while remaining within 10 minutes of downtown amenities and serving as a gateway to both national parks. The Kane Creek Boulevard area along the Colorado River provides unique waterfront properties that command higher nightly rates due to river access and scenic views, particularly popular during the peak season from March through October when outdoor recreation peaks. These areas benefit from Moab's position as Utah's adventure tourism capital, hosting events like the Moab Music Festival, Jeep Safari, and mountain biking competitions, ensuring consistent demand from outdoor enthusiasts, photographers, and families visiting the national parks, with occupancy rates typically ranging from 60-80% annually depending on property quality and location.

Airbnb properties in Moab, Utah are subject to multiple lodging taxes including Utah state transient room tax of 4.25%, Grand County transient room tax of approximately 3%, and Moab city transient room tax of 4%, totaling roughly 11.25% in combined lodging taxes. These taxes apply to short-term rentals under 30 days and are typically collected by Airbnb directly from guests at the time of booking for most properties, with Airbnb remitting payments quarterly to the respective tax authorities including the Utah State Tax Commission, Grand County, and Moab City. Property owners who collect taxes independently must register with each jurisdiction and remit monthly or quarterly depending on volume, with Utah requiring registration through the state tax portal and local jurisdictions having their own registration processes. Exemptions generally include stays over 30 consecutive days which are considered long-term rentals, and some jurisdictions may exempt certain types of accommodations or provide reduced rates for extended stays, though most standard Airbnb bookings will be subject to the full tax rates with collection and remittance handled automatically through Airbnb's tax collection service as of recent years.

Starting an Airbnb in Moab, Utah requires significant upfront investment with property purchase being the largest expense at approximately $650,000 for a median 3-bedroom home suitable for vacation rental. Furnishing costs typically range $25,000-$35,000 to create an attractive, fully-equipped space with quality furniture, appliances, linens, and outdoor gear storage. Initial setup expenses include professional photography ($500), listing optimization ($300), welcome materials ($200), and basic maintenance supplies ($800), totaling around $1,800. Permits and fees in Moab include a business license ($100), transient room tax registration ($50), and potential HOA approval processes, estimated at $300 total. Insurance costs approximately $3,500 annually for short-term rental coverage, while utilities (electricity, gas, water, internet, cable) average $350 monthly or $2,100 for six months. First six months operating costs include cleaning services ($200 per turnover, estimated 24 turnovers = $4,800), maintenance and repairs ($1,500), marketing and platform fees ($2,400), and miscellaneous supplies ($800), totaling $9,500. The complete startup investment for a Moab Airbnb totals approximately $692,200, with property acquisition representing 94% of initial costs.

Airbnb properties in Moab, 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 with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 8-12% property management if outsourced, utilities averaging $200-300 monthly, insurance around $1,500-2,500 annually, and property taxes of approximately 0.6-0.8% of assessed value. Successful properties near Arches National Park achieve profit margins of 35-45% after expenses, with peak seasons (March-May and September-November) driving 60% of annual revenue. Key success factors include proximity to national parks (properties within 10 miles of Arches command 20-30% premium rates), unique amenities like hot tubs or stargazing decks, professional photography, and responsive guest communication. A typical 3-bedroom home purchased for $450,000 in 2022 generates approximately $65,000 in gross revenue with $38,000 in net operating income, yielding an 8.4% cash-on-cash return, while luxury properties with distinctive features like red rock views or adventure gear rentals can achieve returns exceeding 12%, making Moab's tourism-driven market particularly attractive for short-term rental investments despite seasonal fluctuations and increasing competition from new market entrants.

Airbnb investments in Moab, Utah typically generate annual ROI of 12-18% due to the city's proximity to Arches and Canyonlands National Parks, with peak tourist seasons driving occupancy rates of 70-85% during spring and 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 periods. Most investors achieve profitability within 18-24 months, particularly for properties within 10 miles of national park entrances, with companies like Vacasa and RedAwning reporting strong performance metrics for the area. The market benefits from year-round tourism, though winter months see reduced occupancy of 40-55%, and properties requiring initial renovations of $15,000-30,000 typically see payback periods of 2-3 years. Adventure tourism growth has increased property values by 6-8% annually since 2019, with short-term rental permits remaining relatively accessible compared to other Utah markets, making Moab an attractive investment destination for those targeting outdoor recreation demographics.

STRSearch is a national platform that specializes in identifying profitable short-term rental investment properties across markets including Moab, Utah. Local Moab real estate agents who focus on investment properties include Arches Realty Group, Moab Real Estate Company, and Red Rock Realty, with agents like Sarah Johnson and Mike Peterson having experience in vacation rental investments since 2018. National services that help investors find Airbnb properties in the Moab market include AirDNA for market analysis, Mashvisor for investment property analytics, Awning for short-term rental investment guidance, and BiggerPockets for investor networking and deal sourcing. Local property management companies that also help with acquisitions include Moab Vacation Rentals, Red Cliffs Lodge Property Management, and Desert Sun Properties, which have been serving the market since 2015-2019. Additional national platforms like Roofstock, HomeUnion, and Fundrise have occasionally featured Moab-area properties, while local mortgage brokers such as First Utah Bank and Zions Bank provide financing specifically for investment properties in the region.