Is Park City, Utah Good for Airbnb Investment?

To start an Airbnb in Park City, Utah, begin by researching the city's strict short-term rental regulations, which require a Conditional Use Permit (CUP) and business license, with properties limited to rentals of 30 days or less and subject to a cap on the total number of permits issued annually. Contact Park City's Planning Department to understand current availability and requirements, as the city has implemented a lottery system for new permits due to high demand. Find a suitable property within allowed zones (typically residential areas, but verify current zoning maps), ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and emergency egress windows. Once you secure a property and obtain necessary permits, furnish it with quality amenities including mountain-appropriate gear, high-speed internet, and ski storage, keeping in mind Park City's outdoor recreation focus and luxury tourism market. Create compelling listings on Airbnb, VRBO, and other platforms, highlighting proximity to Park City Mountain Resort, Deer Valley, and Main Street attractions, with professional photography showcasing mountain views and ski access. For management, either handle bookings, cleaning, and guest communication yourself or hire local property management companies like RedAwning or Vacasa, ensuring compliance with Park City's noise ordinances, parking restrictions (typically 2-4 vehicles maximum), and occupancy limits (usually 2 people per bedroom plus 2 additional guests), while maintaining the required guest registry and remitting the city's 1% accommodation tax plus Utah's state taxes.

To identify profitable short-term rental properties in Park City, Utah, focus on locations within 10-15 minutes of Park City Mountain Resort and Deer Valley Resort, prioritizing properties in Old Town, Deer Valley, or the Canyons Village area for maximum rental demand. Target 3-5 bedroom properties with mountain views, hot tubs, ski storage, and parking for 4+ vehicles, as these features command premium rates averaging $400-800 per night during peak ski season (December-March) and $200-400 during summer months. Analyze comparable properties on Airbnb and VRBO within a 2-mile radius, calculating potential gross rental income against mortgage, property management fees (typically 20-30% in Park City), utilities, and Summit County's 4.25% transient room tax plus Park City's additional 2.5% tax. Research competition density using AirDNA or Mashvisor to identify oversaturated areas, while focusing on neighborhoods with fewer than 20 STR properties per square mile. Utilize local resources like the Park City Board of Realtors MLS data, Summit County planning department for zoning compliance, and property management companies like RedAwning or Vacasa for market insights, ensuring properties comply with Park City's STR licensing requirements and HOA restrictions before purchase.

To obtain an Airbnb/STR permit in Park City, Utah, you must apply through the Park City Planning Department by submitting a Nightly Rental License application online via the city's permitting portal or in person at 445 Marsac Avenue. Required documents include a completed application form, proof of property ownership or lease agreement, floor plans showing maximum occupancy, parking plan demonstrating compliance with two parking spaces per unit, neighborhood notification affidavit proving you've informed adjacent property owners, liability insurance certificate for minimum $1 million coverage, and a $500 non-refundable application fee plus annual renewal fees of approximately $200-400 depending on unit size. The approval timeline typically takes 4-6 weeks for processing after submission of complete application materials. Park City specific requirements include maximum occupancy limits of two people per bedroom plus two additional guests, mandatory 24/7 local contact person within 30 minutes of property, compliance with noise ordinances with quiet hours from 10 PM to 8 AM, adherence to parking requirements with no street parking for guests, and properties must be owner-occupied or have designated property management. Additionally, STRs are prohibited in certain residential zones and require conditional use permits in others, with a cap on total nightly rental licenses issued citywide, making early application essential due to waiting lists in popular areas.

Short-term rentals (STRs) are legal in Park City, Utah, but operate under strict regulations implemented in 2019 following community concerns about housing availability and neighborhood impacts. The city requires STR operators to obtain a conditional use permit and business license, with properties limited to a maximum of 30 rental nights per year unless they qualify for additional nights through a lottery system that caps total STR nights citywide. STRs are prohibited in certain residential zones and must comply with occupancy limits, parking requirements, noise restrictions, and good neighbor policies. Properties must be owner-occupied or have a local property manager available 24/7, and the city maintains a registry of all permitted STRs. Recent enforcement efforts have focused on unpermitted operations, with significant fines for violations, while the city continues to monitor and adjust regulations to balance tourism revenue with resident quality of life and affordable housing preservation.

The most lucrative Airbnb investment areas in Park City, Utah include Old Town/Historic Main Street, which offers year-round appeal due to proximity to world-class skiing at Park City Mountain Resort and Deer Valley, plus the annual Sundance Film Festival bringing high-paying guests each January. The Canyons Village area near Park City Mountain Resort provides excellent ski-in/ski-out opportunities and attracts premium rates during winter months, while Deer Valley's exclusive neighborhoods command the highest rental prices due to the resort's luxury reputation and restricted snowboarding policy that maintains an upscale clientele. The Jordanelle area, including developments near Jordanelle Reservoir, offers newer construction with mountain and water views, attracting summer recreation enthusiasts and families seeking outdoor activities like boating and hiking. Park Meadows and Jeremy Ranch provide more affordable entry points while still offering mountain access and appeal to corporate retreats and family groups seeking spacious accommodations. The Promontory area, though requiring higher initial investment, attracts ultra-high-net-worth individuals year-round due to its private golf courses, luxury amenities, and exclusive community atmosphere, making it ideal for premium short-term rentals targeting affluent travelers seeking privacy and luxury amenities.

Airbnb properties in Park City, Utah are subject to multiple lodging taxes including the Utah state transient room tax of 4.25%, Summit County's transient room tax of 3%, and Park City's municipal transient room tax of 2.5%, totaling approximately 9.75% in combined lodging taxes. These taxes apply to stays of less than 30 consecutive days and are collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits payments directly to the respective tax authorities on behalf of hosts. The Utah State Tax Commission oversees state tax collection, while Summit County and Park City collect their respective portions through their local tax departments, with remittance typically occurring monthly. Property owners must register with each taxing jurisdiction and may need to file periodic returns even when Airbnb collects the taxes, and exemptions are generally limited to stays exceeding 30 days or specific government/military personnel bookings. Additional resort area fees or special district assessments may apply depending on the property's exact location within Park City's various tax districts, and hosts should verify current rates and requirements with the Utah State Tax Commission, Summit County, and Park City municipal offices as rates and procedures can change annually.

Starting an Airbnb in Park City, Utah requires significant upfront investment due to the area's premium ski resort market positioning. Property purchase costs average $1.2-1.8 million for a suitable 3-4 bedroom home or condo in desirable areas like Old Town or near Park City Mountain Resort, based on 2023-2024 market conditions. Furnishing costs typically range $25,000-40,000 for high-quality mountain lodge aesthetic furniture, appliances, linens, and décor that meets guest expectations in this luxury market. Initial setup expenses including professional photography, listing optimization, and marketing materials cost approximately $2,000-3,500. Permits and fees include a Park City business license ($100), transient room tax registration ($50), HOA approval processes (varies $0-500), and potential conditional use permits ($1,000-3,000 depending on zoning). Insurance costs run $3,000-5,000 annually for comprehensive short-term rental coverage. Utilities including electricity, gas, water, internet, and cable average $400-600 monthly. First six months operating costs encompass cleaning services ($150-250 per turnover), property management fees if outsourced (20-30% of revenue), maintenance reserves ($500-1,000 monthly), restocking supplies ($200-400 monthly), and marketing expenses ($300-500 monthly), totaling approximately $15,000-25,000. The complete startup investment ranges from $1.25-1.9 million, making Park City one of the most expensive Airbnb markets to enter in Utah.

Airbnb properties in Park City, Utah demonstrate strong profitability potential with average annual revenues ranging from $45,000-$85,000 for well-positioned properties, driven by the city's dual-season appeal as both a premier ski destination and summer recreation hub. Properties within 2-3 miles of Park City Mountain Resort or Deer Valley typically achieve 65-75% occupancy rates with average daily rates of $200-$400 during peak ski season (December-March) and $150-$250 during summer months. Operating expenses generally consume 35-45% of gross revenue, including cleaning fees ($75-$150 per turnover), property management (20-25% of revenue), utilities ($200-$400 monthly), insurance ($2,000-$4,000 annually), and maintenance costs, resulting in net profit margins of 25-35% for successful operators. A typical 3-bedroom condo near Main Street generating $65,000 annually might incur $28,000 in expenses, yielding approximately $37,000 in net profit. Success factors include proximity to ski lifts, professional photography, responsive guest communication, premium amenities like hot tubs or mountain views, and strategic pricing during Sundance Film Festival (January) when rates can exceed $500 nightly. Properties managed by companies like RedAwning or Vacasa in Park City have reported occupancy rates 15-20% higher than self-managed units, though management fees reduce overall margins. The market remains competitive but profitable for investors who understand seasonal demand patterns and maintain high property standards.

Airbnb investments in Park City, Utah typically generate annual ROI of 12-18% due to the city's strong ski tourism market and year-round outdoor recreation appeal. Cash-on-cash returns generally range from 8-14% annually, with properties near Park City Mountain Resort and Deer Valley commanding premium rates of $200-400 per night during peak ski season (December-March) and $150-250 during summer months. Most investors achieve profitability within 18-24 months, assuming a 25-30% down payment on properties averaging $800,000-$1.2 million. The market benefits from consistent demand driven by Vail Resorts' ownership of Park City Mountain Resort since 2014 and the area's proximity to Salt Lake City International Airport. Properties with 3-4 bedrooms and ski-in/ski-out access or shuttle proximity typically see occupancy rates of 65-75% annually, while those in Old Town Park City average 60-70% occupancy with slightly lower nightly rates but stronger summer performance due to Main Street proximity and festival events.

STRSearch leads the market in Airbnb investment property analysis for Park City, Utah, providing comprehensive data on rental performance and market trends. Local specialists include Park City Real Estate Group, which has agents experienced in short-term rental investments, and Summit Sotheby's International Realty, known for luxury vacation rental properties in the area. Deer Valley Real Estate offers expertise in ski resort area investments, while Windermere Real Estate Park City provides local market knowledge for STR properties. National services include Awning, which specializes in Airbnb investment property identification and management, Mashvisor for rental property analytics and market research, and BiggerPockets for investor networking and deal sourcing. RedAwning offers vacation rental investment consulting, while AirDNA provides short-term rental market data and performance analytics. Local property management companies like RedAwning Park City and Vacasa also assist investors in identifying profitable properties, and mortgage specialists such as VRBO-focused lenders help finance these investments in the Park City market.