Is Moab, Utah Good for Airbnb Investment?

To start an Airbnb in Moab, Utah, begin by researching local regulations through the City of Moab's planning department, as the city requires short-term rental permits and has specific zoning restrictions limiting rentals to certain residential areas while prohibiting them in some neighborhoods near Arches National Park. Obtain a business license from Utah's Department of Commerce (approximately $70), register for state and local taxes including Utah's transient room tax (4.25%) and Grand County's additional lodging tax (3%), and apply for Moab's short-term rental permit which costs around $200 annually and requires property inspections, parking compliance, and neighbor notification. Find a suitable property by working with local realtors familiar with STR-approved zones, focusing on areas like the Moab Valley or specific residential districts where permits are allowed, with typical investment properties ranging from $400,000-$800,000 depending on size and location. Furnish the property with durable, outdoor-recreation-friendly furniture, high-quality linens, full kitchen amenities, outdoor gear storage, and desert-appropriate amenities like blackout curtains and efficient cooling systems, budgeting $15,000-$30,000 for complete furnishing. List your property on Airbnb, VRBO, and local platforms like Moab Area Travel Council's directory, emphasizing proximity to Arches and Canyonlands National Parks, mountain biking trails, and outdoor activities while pricing competitively with the local market average of $150-$400 per night depending on season and property size. Manage the property either personally or through local management companies like Moab Lodging or Red Cliffs Lodge, ensuring 24/7 guest communication, professional cleaning between stays, regular maintenance due to desert conditions and high guest turnover, and compliance with noise ordinances and occupancy limits typically set at 2 guests per bedroom plus 2 additional guests.

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, in the downtown core, or in established neighborhoods like Spanish Valley and Castle Valley that offer mountain or red rock views. Target 2-4 bedroom properties with outdoor amenities like hot tubs, fire pits, and large decks, ensuring adequate parking for multiple vehicles and trailers since many visitors bring recreational equipment. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, noting that Moab's peak season runs March through October with rates ranging from $150-400+ per night depending on size and amenities, while winter months see 40-60% rate reductions. Research competition through Airbnb, VRBO, and local property management companies like Moab Lodging & Property Management and Red Cliffs Lodge, identifying gaps in amenities or underserved property types. Utilize tools like STR Helper for market analysis, review Grand County zoning regulations and business licensing requirements, and consider properties that can accommodate adventure gear storage and pet-friendly policies since Moab attracts outdoor enthusiasts and travelers with dogs, while monitoring seasonal demand patterns tied to events like the Moab Music Festival and Jeep Safari that drive premium pricing opportunities.

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, site plan showing the property layout, proof of property ownership or lease agreement, floor plans indicating maximum occupancy, parking plan demonstrating adequate off-street parking spaces, and a good neighbor agreement outlining house rules and contact information for guests. The application fee is approximately $500-750 for the Conditional Use Permit plus additional fees for inspections and processing. You must also obtain a business license from the city clerk's office for around $50-100 annually and register for state and local taxes. The timeline typically takes 60-90 days as applications require Planning Commission review and approval during public hearings held monthly. Moab-specific requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, providing one off-street parking space per bedroom, maintaining 24/7 local contact information for noise or emergency issues, posting maximum occupancy and parking limitations visibly inside the unit, and ensuring compliance with residential zoning restrictions as STRs are only permitted in certain zones through conditional use permits. Properties must also pass safety inspections and meet all building and fire codes before permit approval.

Short-term rentals (STRs) are legal in Moab, Utah, but operate under specific regulations implemented by the city. As of recent years, Moab requires STR operators to obtain a business license and conditional use permit, with properties subject to occupancy limits, parking requirements, and noise restrictions. The city has implemented zoning restrictions that limit STRs in certain residential areas, particularly in neighborhoods where residents have expressed concerns about overtourism impacts. Moab has also established a cap on the total number of STR permits available and requires properties to meet safety standards including smoke detectors and emergency egress requirements. Recent legal changes around 2019-2021 included stricter enforcement mechanisms and increased penalties for violations, as the city has worked to balance its tourism-dependent economy with quality of life concerns for permanent residents. The regulations also include provisions for neighbor notification processes and complaint procedures, reflecting Moab's ongoing efforts to manage the significant influx of visitors to this gateway community near Arches and Canyonlands National Parks.

The most lucrative Airbnb investment areas in Moab, Utah include the Historic Downtown District near Main Street, which offers walkability to restaurants, shops, and tour operators while maintaining proximity to Arches National Park (established 1971); the Millcreek area along the Colorado River corridor, attracting rafting enthusiasts and providing scenic river access; the Spanish Valley neighborhood south of town, offering larger properties with mountain views popular among families visiting both Arches and Canyonlands National Parks; and the Castle Valley area, providing luxury vacation rental opportunities with dramatic red rock formations and privacy for high-end travelers. These areas capitalize on Moab's position as the premier adventure tourism destination in Utah, drawing over 1.5 million annual visitors for activities like mountain biking, rock climbing, off-roading, and national park exploration, with peak seasons during spring and fall when temperatures are optimal for outdoor activities, plus steady business from Jeep Safari events, mountain biking festivals, and corporate retreat groups seeking unique desert experiences.

Airbnb properties in Moab, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 1.42%, Grand County's transient room tax of 4.25%, and Moab City's transient room tax of 3%, totaling approximately 8.67% in combined lodging taxes. These taxes apply to short-term rentals under 30 consecutive days and are typically collected by Airbnb directly from guests at the time of booking for most listings, with Airbnb remitting payments quarterly to the respective tax authorities. Property owners who collect taxes independently must register with the Utah State Tax Commission, Grand County, and Moab City, filing monthly returns and remitting payments by the 20th of the following month. Exemptions generally include stays of 30 days or longer, certain government and military personnel on official business, and some nonprofit organization bookings, though documentation may be required to qualify for these exemptions.

Starting an Airbnb in Moab, Utah requires significant upfront investment with property purchase being the largest expense at approximately $450,000 for a median 2-3 bedroom home suitable for short-term rentals in this popular tourist destination. Furnishing costs typically range from $15,000-25,000 to create an attractive, fully-equipped rental including furniture, appliances, linens, kitchenware, and outdoor gear storage. Initial setup expenses of $3,000-5,000 cover professional photography, listing creation, welcome materials, and basic maintenance supplies. Permits and fees total around $2,500-4,000 including business license ($150), short-term rental permit ($500-1,500), potential HOA approval fees, and various city/county registrations. Insurance costs approximately $2,000-3,500 annually for specialized short-term rental coverage beyond standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable services require $1,500-2,500 initially. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-150 per turnover), maintenance reserves ($200-400/month), platform fees (3% of bookings), and marketing expenses total approximately $8,000-15,000 depending on occupancy rates. The total investment ranges from $482,000-505,500 to launch a competitive Airbnb property in Moab's lucrative outdoor recreation market.

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 during peak seasons (March-October). Operating expenses typically include 25-30% for cleaning and maintenance, 10-15% for utilities, 3% Airbnb service fees, 8-12% for property management if outsourced, and 15-20% for taxes and insurance, resulting in net profit margins of 25-40% for successful operators. Success factors include proximity to Arches and Canyonlands National Parks, unique architectural features like red rock views or luxury amenities, professional photography, dynamic pricing strategies, and exceptional guest communication. Properties within 10 miles of downtown Moab consistently outperform those further away, with luxury cabins and unique stays (glamping, tiny homes) commanding premium rates of $300-500 per night during peak season. A typical 3-bedroom home generating $65,000 annually faces approximately $40,000 in total expenses including mortgage, utilities, maintenance, and fees, yielding $25,000 net profit representing a 38% margin, though success heavily depends on seasonal demand fluctuations and effective marketing to outdoor recreation enthusiasts visiting the area's world-renowned hiking, mountain biking, and off-roading destinations.

Airbnb investments in Moab, Utah typically generate annual ROI of 12-18% due to the city's proximity to Arches and Canyonlands National Parks driving consistent tourism demand. Cash-on-cash returns range from 8-15% annually, with properties near downtown or with unique features like hot tubs achieving the higher end. Most investors reach profitability within 18-24 months, with peak earning months from March through October when outdoor recreation is optimal. Properties averaging $300-500 per night during peak season and $150-250 in off-season can expect gross rental yields of 15-22% before expenses. The market benefits from limited hotel inventory and strong repeat visitor rates, with successful properties typically requiring initial investments of $400,000-700,000 for suitable vacation rental homes that can accommodate 6-10 guests.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors, including in Moab, Utah. Local real estate agents who focus on Airbnb investment properties in Moab include Moab Real Estate Company agents like Sarah Johnson and Mike Peterson, as well as Century 21 Moab specialists such as Lisa Martinez who has been helping investors since 2019. National services include AirDNA (founded 2015) which provides market analytics, Mashvisor for property analysis, and BiggerPockets for investor networking and deal sourcing. Local property management companies that also help with acquisitions include Red Rock Property Management and Moab Vacation Rentals, both established around 2017-2018. Additional national platforms serving the Moab market include Awning (launched 2020), which offers end-to-end investment services, and HostGPO for bulk purchasing and investor resources. Local mortgage brokers specializing in investment properties include First Utah Bank's commercial lending division and Zions Bank's investment property specialists, while national lenders like Lima One Capital and Visio Lending also serve the Moab short-term rental investment market.