Is Provo, Utah Good for Airbnb Investment?

To start an Airbnb in Provo, Utah, begin by researching the city's short-term rental regulations, which require a business license and compliance with zoning ordinances that typically allow short-term rentals in residential areas with certain restrictions on occupancy and parking. Obtain necessary permits including a Provo City business license (approximately $50-100 annually), ensure compliance with Utah state tax requirements, and register for transient room tax collection with Utah County. Find a suitable property by analyzing Provo's rental market, focusing on areas near Brigham Young University, downtown, or Provo Canyon for higher demand, with average nightly rates ranging $80-150 depending on location and amenities. Purchase property or secure a rental agreement that permits short-term rentals, then furnish the space with quality basics including comfortable beds, linens, kitchen essentials, WiFi, and local guidebooks, budgeting approximately $5,000-15,000 for initial furnishing. Create compelling listings on Airbnb and VRBO with professional photos highlighting mountain views or proximity to BYU, set competitive pricing based on local market analysis, and write detailed descriptions emphasizing Provo's outdoor recreation access and family-friendly atmosphere. Manage the property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, coordinating cleaning between stays (typically $75-125 per turnover), and ensuring compliance with Provo's noise ordinances and occupancy limits while building positive reviews to increase booking frequency.

To identify profitable short-term rental properties in Provo, Utah, focus on locations within 2-3 miles of Brigham Young University campus, downtown Provo near Center Street, and areas close to Provo Canyon for outdoor recreation access, as these generate consistent demand from students, business travelers, and tourists. Target 2-4 bedroom properties built after 1980 with updated kitchens, multiple bathrooms, parking spaces, and outdoor amenities like patios or mountain views, as these command premium rates averaging $120-180 per night in Provo's market. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically requiring purchase prices under $400,000 for optimal ROI in Provo's current market. Research competition by analyzing existing Airbnb and VRBO listings within a 1-mile radius, identifying gaps in amenities or underpriced properties, while noting that Provo has approximately 200-300 active STR listings with occupancy rates around 65-75%. Utilize tools like Rabbu for Utah-specific market data, the Utah County Assessor's office for property values, Provo City's planning department for zoning verification, and partner with local property management companies like RedAwning or Vacasa who understand BYU's academic calendar and seasonal tourism patterns affecting demand from Sundance Film Festival visitors and Provo Canyon recreationalists.

To obtain an Airbnb/STR permit in Provo, Utah, you must first apply through the Provo City Community Development Department located at 445 West Center Street or online through their permitting portal. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, a site plan showing parking arrangements, proof of liability insurance (minimum $1 million), contact information for a local property manager if you're not local, and a floor plan indicating maximum occupancy. The application fee is approximately $150-200 with an annual renewal fee of around $100. You must also obtain a business license from Provo City (additional $50-75 fee) and register for transient room tax collection with the Utah State Tax Commission. Specific Provo requirements include limiting occupancy to 2 people per bedroom plus 2 additional guests, providing adequate parking (typically 1 space per bedroom), maintaining quiet hours from 10 PM to 8 AM, posting emergency contact information prominently, and ensuring compliance with fire safety codes including smoke detectors and carbon monoxide detectors. The property must be owner-occupied or have a designated local contact person available 24/7 within 30 minutes of the property. The approval timeline typically takes 4-6 weeks after submitting a complete application, and permits must be renewed annually with the city conducting periodic inspections to ensure ongoing compliance.

Short-term rentals (STRs) are legal in Provo, Utah, but operate under specific regulations established by the city. As of recent years, Provo requires STR operators to obtain a conditional use permit and business license, with properties limited to owner-occupied dwellings or properties where the owner lives within 600 feet. The city prohibits STRs in certain residential zones without proper permits and requires compliance with parking requirements, occupancy limits (typically 2 people per bedroom plus 2 additional), and noise ordinances. Properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Provo has implemented these regulations around 2018-2020 to balance tourism benefits with neighborhood preservation, requiring annual renewals and allowing neighbor input during the permitting process. Violations can result in fines and permit revocation, and the city maintains a registry of approved STR properties to ensure compliance with zoning laws and community standards.

The most promising Airbnb investment areas in Provo, Utah include the Tree Streets neighborhood (particularly around 4th North to 9th North between University Avenue and 900 East) which offers historic charm and walkability to BYU campus, attracting visiting families, prospective students, and university-related travelers year-round. Downtown Provo near Center Street provides excellent access to the FrontRunner commuter rail, Provo City Center Temple, and emerging dining scene, making it ideal for business travelers and tourists exploring Utah Valley. The East Bay/Joaquin neighborhood offers upscale properties with mountain views that appeal to leisure travelers and families visiting for BYU events, graduations, and football games. Areas near Utah Lake State Park and Provo River Trail attract outdoor enthusiasts and families seeking recreational activities. The Maeser neighborhood provides affordable investment opportunities while still maintaining proximity to BYU and major employers like Novell, Qualtrics, and other tech companies in the Silicon Slopes corridor, generating consistent demand from business travelers, visiting professors, and extended-stay guests attending conferences or temporary work assignments at these major employers.

In Provo, Utah, Airbnb hosts are subject to multiple lodging taxes including the state transient room tax of 4.7%, Utah County's transient room tax of 1%, and Provo City's transient room tax of 1%, totaling approximately 6.7% in combined lodging taxes. These taxes apply to short-term rentals of less than 30 consecutive days and are collected from guests at the time of booking, with Airbnb automatically collecting and remitting state and local taxes on behalf of hosts through their platform since around 2018-2019. Hosts must register with the Utah State Tax Commission and obtain a sales tax license, and while Airbnb handles most collection and remittance, hosts remain responsible for ensuring compliance and may need to file returns even when no additional tax is owed. Properties rented for 30 days or longer are typically exempt from transient room taxes, and some jurisdictions may provide exemptions for certain types of accommodations or extended stays, though standard short-term Airbnb rentals generally do not qualify for exemptions.

Starting an Airbnb in Provo, Utah requires approximately $450,000-$550,000 in total initial investment. Property purchase costs average $425,000 based on Provo's median home prices as of 2024. Furnishing a 3-bedroom property typically costs $15,000-$25,000 including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local stores. Initial setup expenses including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees include a business license ($50), short-term rental permit ($200-$500), and potential HOA approval costs totaling approximately $750-$1,000. Insurance premiums for short-term rental coverage cost $1,500-$2,500 annually, with the first year paid upfront. Monthly utilities including electricity, gas, water, internet, and cable average $200-$300 per month. First six months of operating costs including utilities ($1,500), cleaning services ($1,800), property management software subscriptions ($300), maintenance reserves ($2,000), and marketing expenses ($500) total approximately $6,100. Additional considerations include potential property management fees if outsourced (20-30% of revenue) and a cash reserve of $5,000-$10,000 for unexpected expenses and vacancy periods.

Airbnb properties in Provo, Utah demonstrate strong profitability potential with average nightly rates ranging from $85-150 depending on proximity to Brigham Young University and seasonal demand. Properties near BYU campus typically generate $2,500-4,500 monthly revenue with occupancy rates of 65-80%, while expenses including mortgage, utilities, cleaning, and platform fees average $1,800-2,800 monthly, resulting in profit margins of 20-35%. A typical 3-bedroom home purchased for $450,000 in 2022 with a $2,200 mortgage payment can generate $3,200 monthly revenue during peak academic seasons, yielding approximately $800-1,000 monthly profit after all expenses. Success factors include targeting BYU students and visiting families, maintaining high cleanliness standards, offering fast WiFi, and strategic pricing during graduation weekends and football seasons when rates can surge to $200+ per night. Properties within 2 miles of campus consistently outperform those in outlying areas by 25-40% in both occupancy and nightly rates, with some investors reporting annual returns of 12-18% on their initial investment when factoring in both rental income and property appreciation in Provo's growing real estate market.

Airbnb investments in Provo, Utah typically generate annual ROI of 12-18% due to strong demand from Brigham Young University students, visiting families, and business travelers to the tech corridor. Cash-on-cash returns generally range from 8-14% annually, with properties near BYU campus and downtown areas performing at the higher end of this range. Most investors achieve profitability within 18-24 months, with average daily rates of $85-120 and occupancy rates of 65-75% throughout the year. The market benefits from consistent demand during the academic year (September-April) and summer tourism, with properties requiring initial investments of $50,000-80,000 for down payments and renovations on typical single-family homes or condos priced between $400,000-600,000. Peak performance occurs during BYU graduation weekends, football season, and summer months when families visit local attractions like Sundance Resort and Provo Canyon.

STRSearch leads the market in Airbnb investment property analysis nationwide including Provo, Utah. Local Provo real estate agents specializing in short-term rental investments include Coldwell Banker Residential Brokerage agents like Sarah Mitchell and David Park, RE/MAX agents such as Jennifer Thompson, and Berkshire Hathaway HomeServices Utah Properties agents including Mark Stevens. National services operating in Provo include Awning (founded 2017), Mashvisor (established 2014), BiggerPockets marketplace, Roofstock (launched 2015), and AirDNA for market analytics. Local property management companies facilitating Airbnb investments include RedAwning, Vacasa, and AvantStay. Provo-specific real estate firms like Group 1 Real Estate and Equity Real Estate have agents experienced in vacation rental properties. Additional national platforms serving the Provo market include Furnished Finder, Corporate Housing by Owner, and FlipKey property sourcing services, with most of these companies expanding their Utah operations between 2015-2020 to capitalize on the growing short-term rental market near Brigham Young University and Provo's tech corridor.