Is Payson, Utah Good for Airbnb Investment?

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

• Presents a promising opportunity, largely driven by its scenic location and growing appeal as an outdoor recreation hub.
• Payson's real estate market shows steady growth, with property values remaining relatively affordable compared to larger Utah cities.
• Tourism trends are on an upward trajectory, as visitors are drawn to nearby attractions like the Nebo Loop Scenic Byway, local hiking and biking trails, and community events.
• While not a major metropolitan area, Payson's charm and access to nature provide a unique niche for Airbnb hosts.

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

• Based on available market data and regional analysis, Airbnb properties in Payson, Utah typically generate between $800-$2,200 per month in gross revenue.
• Summer months (June through August) represent peak earning periods with average monthly revenues reaching $1,800-$2,500, while winter months typically see earnings drop to $600-$1,400 monthly.
• Properties with 2-3 bedrooms and mountain or lake views command premium rates of $85-$150 per night, while smaller units average $55-$95 nightly.
• Key factors influencing earnings include property size and amenities, proximity to Utah Lake and Payson Canyon recreational areas, seasonal tourism patterns related to nearby ski resorts, local events and festivals.
• Occupancy rates fluctuate between 45-65% annually, with higher occupancy during summer outdoor recreation season and lower rates during shoulder seasons.

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

• Typically generate ROI between 8-12% annually, with properties averaging $120-180 per night during peak seasons and 60-70% occupancy rates throughout the year.
• The payback period for initial investment generally ranges from 7-10 years, depending on property acquisition costs which average $450,000-550,000 for suitable vacation rental homes in the area.
• Compared to traditional long-term rentals in Payson that yield approximately 6-8% ROI with monthly rents of $1,800-2,400, short-term rentals can outperform by 2-4 percentage points annually.
• The Payson market benefits from proximity to recreational areas like Payson Lakes and Utah Lake, driving consistent demand from outdoor enthusiasts and families.

Payson, Utah averages 55–65% annual occupancy, with seasonal variation.

• Airbnb occupancy rates in Payson, Utah typically average around 55-65% annually, with significant seasonal variation driven by the area's proximity to outdoor recreation areas and Payson Lakes.
• Peak occupancy occurs during summer months (June through August) when rates climb to 75-85%, coinciding with camping, hiking, and lake activities.
• Spring and fall shoulder seasons maintain moderate occupancy rates of 50-60%.
• Payson's occupancy rates generally align closely with Utah's statewide Airbnb average of approximately 60%.
• Compared to national Airbnb averages of 48-52%, Payson performs moderately well due to Utah's strong tourism industry and the town's appeal as a gateway to outdoor recreation.

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

• The most promising Airbnb investment neighborhoods in Payson, Utah include the Historic Downtown area which offers charm and walkability to local shops and restaurants while maintaining affordable property prices.
• The areas near Utah Lake offer waterfront access and recreational activities that command higher nightly rates, particularly during summer months.
• Neighborhoods close to Payson High School and the city center benefit from consistent demand from visiting families and sports teams.
• The foothills areas near the Payson Temple attract visitors to the LDS community and offer scenic views that justify higher pricing.

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

• Short-term rental regulations in Payson, Utah require property owners to obtain a conditional use permit through the city's planning department.
• The city limits occupancy to two people per bedroom plus two additional guests, with a maximum of 10 people total regardless of property size.
• Owner-occupancy is not required, allowing for non-resident ownership of short-term rental properties.
• Zoning restrictions permit short-term rentals in residential zones (R-1, R-2, R-3) but require conditional use permits in all cases, while commercial zones may allow them as permitted uses.
• Recent changes implemented in 2022-2023 include stricter noise ordinances with quiet hours from 10 PM to 7 AM, mandatory posting of house rules, required annual inspections for fire safety compliance.
• The city also established a complaint tracking system and requires all short-term rentals to display permit numbers in online listings.

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

• Short-term rentals in Payson, Utah are subject to several fees and taxes including Utah state transient room tax of 4.25%, Utah County transient room tax of approximately 1-2%.
• Registration fees typically range from $100-300 annually for business license requirements, with initial permit application fees of approximately $50-150.
• Property owners must also pay standard Utah sales tax of 4.85% plus local sales tax additions bringing total sales tax to roughly 6.1-7.25% on rental income.
• Additional costs may include fire safety inspection fees of $75-125, health department permits where applicable at $50-100, and potential homeowner association fees if properties are in HOA communities.
• Some properties may require special use permits costing $200-500 depending on zoning requirements, and there may be annual renewal fees of $25-75 for maintaining active short-term rental status with the city.