Is Orem, Utah Good for Airbnb Investment?

Potentially—Orem, Utah combines visitor demand with long-term real estate upside.

• Presents a promising opportunity, largely influenced by its growing economy, proximity to natural attractions.
• Current market conditions in Orem indicate a steady increase in property values, driven by continuous population growth and strong demand for housing.
• Tourism trends in the region are robust, with visitors drawn to nearby recreational areas such as the Provo Canyon and Sundance Mountain Resort.
• This consistent influx of short-term visitors creates a reliable demand for Airbnb accommodations.
• The investment potential in Orem is further enhanced by its more affordable property values compared to larger metropolitan areas in Utah.

$1,200–$2,800 per month based on location, season, and property quality.

• Based on available market data and rental analytics, Airbnb hosts in Orem, Utah typically earn between $1,200 to $2,800 per month.
• Seasonal variations show peak earnings during summer months (June through August) when monthly revenues can increase by 25-40% due to proximity to outdoor recreation areas like Utah Lake and nearby national parks.
• Properties near Brigham Young University experience higher demand during the academic year, particularly during graduation periods and major university events.
• Key factors affecting earnings include property size and amenities, with three-bedroom homes outperforming smaller units by approximately 35%, proximity to BYU campus adding an estimated 20-30% premium.
• The average daily rate ranges from $85 to $165 for entire homes, with occupancy rates typically between 60-75% depending on season and property quality, while hosts who provide additional amenities like hot tubs.

Potentially strong—typical annual ROI is 8–12%.

• Typically generate ROI between 8-12% annually, with higher-end properties near Utah Valley University and Provo Canyon achieving up to 15% returns due to strong demand from visiting families, business travelers.
• The average payback period ranges from 7-10 years, depending on initial investment and property management efficiency.
• Compared to traditional long-term rentals in Orem that typically yield 6-8% ROI, short-term rentals command premium nightly rates of $80-150 versus monthly rental income equivalent to $40-60 per night.
• The market benefits from Orem's proximity to major Utah attractions, stable local economy, and growing tech sector, making it more resilient than purely tourism-dependent markets.

Orem, Utah averages 65–70% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Orem, Utah typically average around 65-70% annually, with significant seasonal variation that peaks during summer months (June-August) at approximately 80-85% due to outdoor recreation activities and proximity to Utah Lake and nearby national parks.
• Winter months see occupancy drop to around 45-55%, while spring and fall maintain moderate rates of 60-65%.
• Peak demand occurs during major events at Brigham Young University and summer tourist season when visitors explore the greater Utah Valley region.
• Orem's occupancy rates generally align closely with Utah's statewide average of 68%, though they tend to run slightly below major tourist destinations like Park City or Moab which can exceed 75% annually.
• Compared to national Airbnb averages of approximately 48-52%, Orem performs significantly better due to Utah's strong tourism industry and the area's appeal as a gateway to outdoor recreation.

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

• The best Airbnb investment neighborhoods in Orem include **Downtown Orem** which offers proximity to the FrontRunner station and University Place shopping.

Yes, but only where zoning permits short-term rentals and every required license is current.

• Orem, Utah requires short-term rental operators to obtain a conditional use permit through the city's planning department.
• Properties are limited to a maximum occupancy of two people per bedroom plus two additional guests, with total occupancy not exceeding 16 people.
• Owner-occupancy is not required for short-term rentals, but properties must be owner-operated rather than managed by third-party companies.
• Short-term rentals are prohibited in R1-9 and R1-12 single-family residential zones but are permitted with conditional use permits in R1-15, R2, R3, and higher density residential zones.
• The registration process involves submitting a conditional use permit application with a site plan, floor plan, parking plan, and management plan.
• Recent regulatory changes have strengthened enforcement mechanisms, increased penalties for violations, and added requirements for 24-hour contact information to be provided to neighbors.

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

• Short-term rentals in Orem, Utah are subject to several fees and taxes including Utah state transient room tax of 4.25%, Utah County transient room tax of approximately 1%, and Orem city transient room tax of 1.5%.
• Property owners must obtain a business license from Orem City costing approximately $25-50 annually, register for a Utah state tax license (typically $16).
• Tourism promotion taxes may add another 0.5-1% to the total tax burden, and operators must also collect and remit Utah state sales tax of 4.85% plus local sales tax of approximately 2.75% on rental income.
• Additional costs may include fire safety inspections ($50-100), health department permits for certain property types ($75-150).