Is Salt Lake City, Utah Good for Airbnb Investment?

To start an Airbnb in Salt Lake City, Utah, begin by researching local regulations as the city requires short-term rental operators to obtain a Conditional Use Permit (CUP) from the Planning Division, which costs approximately $1,500-2,000 and involves a public hearing process that can take 2-3 months. You must also register for a Salt Lake City business license ($75-150 annually) and collect the city's 4.85% transient room tax plus Utah's state tax. Find a suitable property in zones that allow short-term rentals, typically residential zones with proper CUP approval, focusing on areas near downtown, the University of Utah, or ski resort access points where nightly rates range from $80-250. Purchase essential furnishings including quality bedding, basic kitchen supplies, WiFi, smart locks, and safety equipment like smoke detectors and fire extinguishers, budgeting $3,000-8,000 for a complete setup. Create compelling listings on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to attractions like Temple Square, Big Cottonwood Canyon, or the Salt Palace Convention Center. Implement management systems using tools like Guesty or HostFully for automated messaging, coordinate cleaning services between guests (typically $50-100 per turnover), maintain 24/7 guest communication, monitor reviews closely, and ensure compliance with occupancy limits and noise ordinances to avoid penalties that can reach $1,000 per violation in Salt Lake City.

To identify profitable short-term rental properties in Salt Lake City, Utah, focus on locations within 15-20 minutes of downtown, near ski resorts like Park City or Alta, close to the University of Utah, or in walkable neighborhoods like The Avenues, Sugar House, and Capitol Hill. Target properties with 2-4 bedrooms, parking spaces, outdoor amenities, mountain or city views, and unique architectural features that photograph well for listings. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by 40-60%, typically finding sweet spots in the $300,000-$600,000 range for condos and $400,000-$800,000 for single-family homes. Research competition by analyzing existing Airbnb and VRBO listings within a 1-mile radius, identifying gaps in amenities or pricing, and noting seasonal occupancy patterns driven by ski season (December-March) and summer outdoor activities. Utilize tools like Rabbu for Salt Lake City-specific rental regulations, the Utah MLS for property searches, STR Helper for permit requirements, and local Facebook groups like "Salt Lake City Real Estate Investors" for market insights, while ensuring compliance with Salt Lake City's STR licensing requirements and zoning restrictions that limit rentals in certain residential areas.

To obtain an Airbnb/STR permit in Salt Lake City, Utah, you must apply through the Salt Lake City Planning Division by submitting an application online via the city's permitting portal or in person at 451 South State Street. Required documents include a completed short-term rental application, proof of property ownership or lease agreement with landlord consent, a site plan showing the property layout, parking plan demonstrating adequate off-street parking, contact information for a local responsible party available 24/7, and proof of liability insurance with minimum $1 million coverage. The application fee is approximately $400-500 with an additional annual renewal fee of around $200-300. The review process typically takes 4-6 weeks and includes a public notice period and potential neighborhood input. Salt Lake City specific requirements include maintaining the property as your primary residence if applying for a home-share permit, limiting occupancy to no more than 8 guests, providing one off-street parking space per bedroom, ensuring the property meets all building and fire safety codes, registering with the Utah State Tax Commission for transient room tax collection, and maintaining a guest registry. The permit must be renewed annually, and operators must comply with noise ordinances and respond to complaints within 2 hours when the responsible party is contacted.

Short-term rentals (STRs) are legal in Salt Lake City, Utah, but operate under a comprehensive regulatory framework established in 2019 and refined through subsequent amendments. The city requires STR operators to obtain a conditional use permit and business license, with properties limited to hosting no more than two separate rentals simultaneously and a maximum occupancy based on bedroom count plus two additional guests. STRs are prohibited in certain zoning districts and cannot operate within 600 feet of another permitted STR in residential areas, while downtown and commercial zones have more flexible spacing requirements. Recent changes in 2022-2023 have strengthened enforcement mechanisms and increased penalties for violations, with the city requiring 24/7 local contact information, parking compliance, and adherence to noise ordinances. Properties must also meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, while operators face annual renewal processes and potential permit revocation for repeated violations or neighborhood complaints.

The best Airbnb investment areas in Salt Lake City include Downtown/City Creek District, which attracts business travelers visiting corporate headquarters like Goldman Sachs and Adobe, plus tourists accessing Temple Square and convention center events. The Avenues neighborhood offers historic charm and walkability to downtown attractions, appealing to leisure travelers seeking authentic local experiences. Sugar House provides a trendy, walkable environment with restaurants and nightlife that draws younger visitors and digital nomads. The University of Utah area captures parent visits, academic conferences, and hospital-related medical tourism given the proximity to University of Utah Hospital. Park City-adjacent areas in eastern Salt Lake City benefit from overflow during Sundance Film Festival (January) and year-round ski tourism to nearby resorts like Alta and Snowbird. The Liberty Wells/9th and 9th district offers a hip, local vibe with craft breweries and eateries attracting millennials and Gen Z travelers. Capitol Hill provides affordable investment opportunities with growing appeal due to its proximity to downtown and emerging restaurant scene, while offering views that attract Instagram-focused travelers seeking scenic backdrops.

In Salt Lake City, Utah, Airbnb hosts are subject to multiple lodging taxes including the state transient room tax of 4.7%, Salt Lake County's transient room tax of 1%, and Salt Lake City's transient room tax of 1%, totaling approximately 6.7% 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 appropriate tax authorities on behalf of hosts. Hosts must register with the Utah State Tax Commission and obtain a transient room tax license, and while Airbnb handles collection and remittance for most bookings made through their platform, hosts remain responsible for ensuring compliance and may need to file returns even when taxes are collected automatically. Exemptions typically include stays of 30 days or longer, certain government and military personnel on official business, and some nonprofit organization stays, though documentation may be required to claim these exemptions. The city also requires short-term rental operators to obtain proper business licenses and comply with zoning regulations, with tax obligations beginning immediately upon the first rental transaction regardless of income thresholds.

Starting an Airbnb in Salt Lake City, Utah requires approximately $520,000-$580,000 in total initial investment. Property purchase costs average $450,000-$500,000 based on median home prices in desirable neighborhoods like The Avenues, Sugar House, or downtown areas. Furnishing costs range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup expenses total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic supplies. Permits and fees amount to $500-$1,200 including business license, short-term rental permit, and potential HOA approvals. Insurance costs $2,000-$3,500 annually for short-term rental coverage beyond standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $200-$300 monthly or $1,200-$1,800 for six months. First six months operating costs total $8,000-$12,000 covering cleaning services ($100-150 per turnover), maintenance, restocking supplies, property management software, marketing, and potential vacancy periods, assuming 60-70% occupancy rates typical for Salt Lake City's seasonal tourism patterns.

Airbnb properties in Salt Lake City, Utah demonstrate strong profitability potential with average daily rates ranging from $85-150 depending on location and property type, generating annual revenues of $25,000-45,000 for well-managed properties. Properties near downtown and ski resorts like Park City command premium rates, with some hosts reporting gross profit margins of 35-50% after accounting for expenses including mortgage payments ($1,200-2,000 monthly), utilities ($150-250), cleaning fees ($40-80 per turnover), property management (10-20% of revenue), insurance ($100-200 monthly), and maintenance costs ($200-400 monthly). Success factors include proximity to Temple Square, University of Utah, and winter sports destinations, with seasonal demand peaking during ski season (December-March) and summer outdoor activities driving consistent bookings. A typical 2-bedroom condo near downtown averaging $120/night with 65% occupancy generates approximately $28,470 annually, while expenses total around $18,000-20,000, yielding net profits of $8,000-10,000 representing 28-35% profit margins, though properties requiring significant renovations or in less desirable neighborhoods may see margins drop to 15-25%.

Airbnb investments in Salt Lake City, Utah typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties near ski resorts like Park City and downtown areas command premium rates of $120-180 per night during peak winter season (December-March) and $80-120 during summer months, with average occupancy rates of 65-75% annually. Initial investment recovery usually occurs within 7-10 years, with monthly gross rental income averaging $2,500-4,200 for well-located 2-3 bedroom properties. The market benefits from consistent tourism driven by Snowbird, Alta, and Park City ski resorts, plus business travel to companies like Goldman Sachs and Adobe who have significant operations in the area. Properties within 30 minutes of ski access typically achieve the higher end of ROI ranges, while downtown Salt Lake City properties near Temple Square and the convention center maintain steady year-round bookings with slightly lower but more consistent returns of 7-9% annually.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties across markets including Salt Lake City, Utah. Local real estate agents who focus on Airbnb investments in Salt Lake City include teams from Coldwell Banker Realty, KW Commercial, and RE/MAX Associates, with agents like those at Utah Investment Properties and Mountain West Real Estate specializing in rental property acquisitions. National services include Mashvisor, which provides Airbnb analytics and property recommendations, AirDNA for market data and investment analysis, and Awning, a platform that connects investors with Airbnb-optimized properties. Additional local services include Salt Lake City-based property management companies like RedAwning and Vacasa that also assist with property acquisition, while national companies such as AvantStay and Lyric focus on identifying and managing short-term rental investments. Real estate investment firms like BiggerPockets' local Salt Lake City network and national platforms like Roofstock and Fundrise also provide resources and properties suitable for Airbnb investments in the Salt Lake City market.