Is Monticello, Utah Good for Airbnb Investment?

To start an Airbnb in Monticello, Utah, begin by researching local regulations through San Juan County and Monticello city offices, as this small town (population ~2,000) may have specific zoning requirements for short-term rentals, though regulations are typically less restrictive than major cities. Obtain necessary permits including a business license from San Juan County ($50-100 annually), sales tax permit from Utah State Tax Commission, and potentially a conditional use permit if required by local zoning. Find property by searching rural areas, historic homes, or properties near attractions like Canyonlands National Park (30 minutes away) and Bears Ears National Monument, with average home prices ranging $200,000-400,000. Furnish the property with rustic, southwestern décor appropriate for the high desert climate, including heating for winter temperatures that drop below freezing, air conditioning for summer highs reaching 90°F, and outdoor furniture for stargazing. List your property on Airbnb and VRBO emphasizing proximity to national parks, dark sky viewing, and outdoor recreation, with rates typically $80-150/night depending on size and amenities. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider hiring a property management company in nearby Moab if you're not local, while maintaining communication with the small community and respecting the quiet, rural character that attracts visitors seeking an authentic Utah experience.

To identify profitable short-term rental properties in Monticello, Utah, focus on locations within 15-20 minutes of Canyonlands National Park and Dead Horse Point State Park, as proximity to these attractions drives high occupancy rates year-round. Target 3-4 bedroom properties with outdoor amenities like hot tubs, fire pits, and scenic views of the red rock landscape, as these features command premium rates of $150-300 per night during peak seasons (April-October). Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties, noting that successful STRs in the area typically achieve 60-75% occupancy with average daily rates 40-60% higher than traditional rentals. Research competition by studying listings within a 10-mile radius, identifying gaps in amenities or property types, and monitoring seasonal pricing patterns of top performers. Utilize tools like STR Helper for market analysis, connect with local property management companies such as Moab Property Management who service the Monticello area, and leverage Zillow and LoopNet for property acquisition while considering that properties under $400,000 with strong rental potential typically offer the best ROI in this emerging market that benefits from Moab's overflow tourism.

To obtain an Airbnb/STR permit in Monticello, Utah, contact the Monticello City Hall at 435-587-2435 or visit their office at 197 North Main Street to inquire about short-term rental licensing requirements, as the city may require a business license and conditional use permit for STR operations. Required documents typically include a completed business license application, property deed or lease agreement, floor plan of the rental unit, parking plan, contact information for a local property manager if you're not local, proof of insurance, and septic/well inspection certificates if applicable given the rural nature of San Juan County. The business license fee is generally $25-50 annually, while a conditional use permit may cost $100-300 with additional public hearing fees. The timeline involves submitting your application, waiting 2-4 weeks for initial review, potentially attending a planning commission meeting if a conditional use permit is required, and receiving approval within 30-60 days total. Monticello-specific requirements likely include maintaining adequate parking spaces, ensuring septic systems can handle increased occupancy, providing emergency contact information to neighbors, adhering to quiet hours typically from 10 PM to 7 AM, and potentially limiting occupancy based on bedroom count and septic capacity due to the town's rural infrastructure and proximity to natural areas like Canyonlands National Park.

Short-term rentals (STRs) are generally legal in Monticello, Utah, as the city has not implemented specific prohibitive ordinances against vacation rentals, following the broader trend in rural Utah communities that welcome tourism revenue. However, STR operators must comply with standard business licensing requirements, health department regulations, and zoning ordinances that may restrict commercial activities in certain residential areas. The city requires basic business licenses for rental operations and adherence to fire safety codes, while San Juan County may impose additional health and safety inspections for properties renting to transient guests. Recent legal changes in Utah, including state legislation around 2019-2021, have generally supported STR operations while allowing local municipalities to implement reasonable regulations regarding safety, taxation, and neighborhood compatibility. Monticello's proximity to national parks and outdoor recreation areas has made it increasingly attractive for STR investments, though operators should verify current zoning compliance and obtain proper permits before beginning operations, as rural Utah communities are gradually developing more specific STR frameworks to balance tourism benefits with residential neighborhood preservation.

The best areas for Airbnb investment in Monticello, Utah are the downtown historic district near Main Street, which attracts visitors exploring the area's pioneer heritage and serves as a convenient base for accessing nearby attractions, and the residential neighborhoods along 100 North and 200 North streets that offer quiet retreats while maintaining proximity to local amenities. The area near the Monticello Welcome Center and along Highway 191 is particularly attractive due to high visibility and easy access for travelers heading to or from Arches and Canyonlands National Parks, approximately 50 miles north. Properties near the San Juan County Courthouse and civic center benefit from business travelers and government visitors, while homes with views toward the Abajo Mountains (Blue Mountains) command premium rates from tourists seeking scenic accommodations. The southeastern residential area near the high school attracts families visiting for sporting events and graduations, and properties along 100 South provide a balance of residential charm and commercial accessibility, making them ideal for both leisure and business travelers using Monticello as a gateway to southeastern Utah's outdoor recreation opportunities.

Airbnb properties in Monticello, Utah are subject to multiple lodging taxes including Utah state transient room tax of 4.25%, San Juan County transient room tax of approximately 3%, and potential local Monticello city lodging tax of around 1-2%. These taxes apply to 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 implemented around 2018-2019. Airbnb remits collected taxes quarterly to the Utah State Tax Commission, which then distributes county and local portions to San Juan County and Monticello respectively. Property owners who collect taxes independently must register with the Utah State Tax Commission and file monthly returns by the 20th of the following month, remitting taxes electronically through the state's online portal. Exemptions generally include stays of 30 days or longer, certain government employee travel, and some nonprofit organization bookings, though documentation may be required to qualify for exemptions.

Starting an Airbnb in Monticello, Utah requires approximately $285,000-$320,000 in total initial investment. Property purchase represents the largest expense at $200,000-$230,000 based on median home prices in this rural San Juan County area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup expenses including professional photography, listing creation, and basic renovations cost approximately $3,000-$5,000. Permits and fees in Utah generally run $500-$1,200 including business licenses, short-term rental permits, and any required inspections. Insurance specifically for short-term rentals costs roughly $1,500-$2,500 annually, with the first year paid upfront. Utility deposits and connections for electricity, water, gas, internet, and cable total approximately $800-$1,500. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-125 per turnover), maintenance reserves ($200-400/month), property management software subscriptions ($50-100/month), and marketing expenses add another $4,000-$8,000 to the startup budget, bringing the comprehensive total investment needed to successfully launch an Airbnb property in Monticello, Utah to approximately $285,000-$320,000.

Airbnb properties in Monticello, Utah show moderate profitability potential with average nightly rates ranging from $85-150 depending on property size and amenities, generating approximately $15,000-35,000 in annual gross revenue for properties with 60-70% occupancy rates. Operating expenses typically consume 40-50% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25%), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins generally fall between 25-35% for well-managed properties, with successful operators like those near Canyonlands National Park achieving higher margins by targeting outdoor enthusiasts visiting nearby attractions. Key success factors include strategic location within 30 minutes of national parks, professional photography showcasing Utah's scenic backdrop, competitive pricing during peak seasons (April-October), and maintaining 4.8+ star ratings through consistent cleanliness and local recommendations. Properties featuring hot tubs, fire pits, or unique architectural elements command premium rates, with some luxury cabins near the Abajo Mountains reporting annual profits exceeding $20,000 after expenses, while basic properties may yield $8,000-12,000 annually depending on marketing effectiveness and seasonal demand fluctuations.

Airbnb investments in Monticello, Utah typically generate annual ROI of 12-18% due to the town's proximity to Canyonlands National Park and growing outdoor recreation tourism. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak seasons (April-October) and maintaining 60-75% occupancy rates. Initial profitability usually occurs within 18-24 months, with full investment recovery expected in 6-8 years. Properties within 5 miles of national park access points command premium rates, while renovated 3-4 bedroom homes targeting family groups show the strongest performance metrics, benefiting from Monticello's position as a gateway community for Arches and Canyonlands National Parks tourism.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Monticello, Utah. Local real estate agents specializing in investment properties include Century 21 Everest in nearby Moab (serving the greater southeastern Utah region), Arches Realty Group, and independent agents like Sarah Mitchell Real Estate who focus on vacation rental investments in the Four Corners area. National services include Awning (formerly RedAwning) which offers full-service Airbnb property management and investment guidance, Mashvisor for property analysis and market research, AirDNA for short-term rental data analytics, and BiggerPockets for investor networking and deal sourcing. Regional companies such as Utah Mountain Properties and Canyonlands Real Estate specialize in recreational and investment properties throughout southeastern Utah, while Vacasa and RedAwning provide property management services for investors looking to purchase and operate Airbnb properties in the Monticello market. Additional services include RentSpree for rental property searches, Roofstock for turnkey rental investments, and local property management companies like Four Corners Property Management that can assist with both acquisition and ongoing operations of short-term rental properties in the area.