Is St. George, Utah Good for Airbnb Investment?

To start an Airbnb in St. George, Utah, begin by researching local regulations as the city requires short-term rental permits and has specific zoning restrictions that limit rentals to certain residential areas while prohibiting them in some neighborhoods. Contact St. George City's planning department to obtain a Conditional Use Permit (CUP) which costs approximately $500-800 and requires neighbor notification, then apply for a business license ($50-100 annually) and ensure compliance with fire safety codes including smoke detectors and emergency exits. Find a suitable property in permitted zones, focusing on areas near Zion National Park, downtown, or the Red Canyon area where tourist demand is highest, with average nightly rates ranging $80-200 depending on size and location. Purchase essential furnishings including quality bedding, kitchen appliances, outdoor furniture for patios, and desert-themed decor that appeals to tourists visiting for hiking and outdoor activities. Create your listing on Airbnb and VRBO with professional photos highlighting red rock views and proximity to attractions like Zion, Snow Canyon State Park, and downtown St. George, emphasizing amenities like hot tubs, garages, and air conditioning which are highly valued in the desert climate. Manage your property by establishing relationships with local cleaning services ($75-150 per turnover), maintenance contractors familiar with desert conditions, and consider using property management companies like RedAwning or Vacasa if you're not local, while maintaining competitive pricing during peak seasons (March-May and September-November) when temperatures are ideal for outdoor activities.

To identify profitable short-term rental properties in St. George, Utah, focus on locations within 10-15 minutes of Zion National Park entrances, downtown historic district, or near Red Canyon and Snow Canyon State Park, as these areas command premium nightly rates of $150-300. Target 3-4 bedroom single-family homes or condos with outdoor amenities like pools, hot tubs, or scenic red rock views, built after 2000 with modern finishes, as these generate 15-20% higher occupancy rates. Analyze comparable STR properties using AirDNA and Mashvisor to identify neighborhoods with average daily rates above $180 and occupancy rates exceeding 65%, while avoiding oversaturated areas like certain parts of Hurricane or Washington where competition has driven rates down 20-30% since 2022. Research local competition by monitoring Airbnb and VRBO listings within a 3-mile radius, identifying gaps in amenities or property types, and use tools like Rabbu, PriceLabs, and STR Helper for St. George-specific market data. Purchase properties under $500,000 in established neighborhoods like Green Valley, Bloomington Hills, or Stone Cliff that offer strong vacation rental potential while ensuring compliance with Washington County's STR regulations and HOA restrictions that vary significantly across developments.

To obtain an Airbnb/STR permit in St. George, Utah, you must first contact the St. George City Planning and Zoning Department at 175 E 200 N, St. George, UT 84770 or call (435) 627-4020 to submit a Conditional Use Permit application since short-term rentals require special approval in most residential zones. Required documents include a completed CUP application form, site plan showing parking areas and property layout, proof of property ownership or authorization letter from owner, floor plans indicating maximum occupancy, neighborhood notification affidavit, and a $500-800 application fee depending on property size. You must also obtain a business license from the city clerk's office for approximately $50-100 annually and register for Utah state tax ID for transient room tax collection. The process typically takes 6-10 weeks including a public hearing before the Planning Commission, during which neighbors can provide input. St. George specific requirements include maintaining adequate off-street parking (minimum 2 spaces), limiting occupancy to 2 people per bedroom plus 2 additional guests, ensuring 24/7 local contact person availability, posting maximum occupancy and quiet hours signage, and complying with fire safety codes including smoke detectors and emergency egress. Once approved, you must renew the permit annually and maintain compliance with all zoning conditions, noise ordinances, and parking requirements.

Short-term rentals (STRs) are legal in St. George, Utah, but operate under specific municipal regulations that require property owners to obtain a conditional use permit and business license before operating. The city allows STRs in most residential zones but prohibits them in certain historic districts and requires properties to meet specific safety standards including smoke detectors, carbon monoxide detectors, and emergency egress requirements. Current restrictions include occupancy limits based on bedroom count, mandatory 24-hour local contact information, parking requirements of at least two spaces per unit, and noise ordinances that limit disturbances to neighbors. St. George updated its STR ordinances in 2019-2020 to address growing concerns about neighborhood impacts and housing availability, implementing stricter enforcement mechanisms and higher penalties for violations. Properties must also comply with Utah state tax requirements and collect transient room taxes, with the city conducting periodic inspections to ensure ongoing compliance with health, safety, and zoning standards.

The best Airbnb investment areas in St. George, Utah include the Historic Downtown District, which attracts tourists visiting Zion National Park (30 minutes away) and offers walkable access to restaurants, shops, and cultural events like the St. George Marathon and Ironman competitions. The Red Canyon/Coral Canyon area is highly desirable for luxury vacation rentals due to its proximity to world-class golf courses like Sand Hollow Resort and stunning red rock scenery that draws outdoor enthusiasts year-round. The Green Valley/Santa Clara area provides excellent value with newer developments attracting families visiting nearby attractions while offering lower property acquisition costs. The Bloomington Hills area appeals to higher-end travelers seeking upscale accommodations with mountain and valley views, particularly popular during peak tourist seasons from March through May and September through November. The Washington Fields area offers strong potential due to its rapid growth, proximity to business centers, and appeal to both leisure travelers exploring Utah's "Dixie" region and business travelers visiting the expanding tech and healthcare sectors, with companies like Intermountain Healthcare establishing significant presence since 2018.

In St. George, Utah, Airbnb properties are subject to multiple lodging taxes including the state transient room tax of 4.25%, Washington County's transient room tax of 3%, and St. George city's transient room tax of 1%, totaling approximately 8.25% 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, with Airbnb automatically collecting and remitting state and local taxes for most bookings through their platform since 2019. Property owners must register with the Utah State Tax Commission and obtain a transient room tax license, filing monthly returns by the 20th of the following month even when Airbnb collects the taxes, as backup documentation is required. Washington County and St. George also require separate registration and may require direct remittance depending on the booking platform used. Exemptions typically include stays of 30 days or longer, government employees on official business, and certain nonprofit organization bookings, though documentation must be provided to qualify for these exemptions.

The total cost to start an Airbnb in St. George, Utah is approximately $485,000-$565,000. Property purchase costs around $400,000-$475,000 based on median home prices in the area as of 2023-2024. Furnishing a 3-bedroom property ranges from $25,000-$35,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees including business license, short-term rental permit, and city registration fees cost approximately $500-$1,500 annually. Insurance for short-term rentals runs $2,500-$4,000 per year, significantly higher than standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services ($150 per turnover), supplies, maintenance, property management software, and marketing total $8,000-$12,000. Additional considerations include potential HOA fees of $100-$300 monthly and emergency repair funds of $5,000-$10,000 for unexpected maintenance issues common in vacation rentals.

Airbnb properties in St. George, Utah demonstrate strong profitability potential with average daily rates ranging from $150-300 depending on property size and amenities, generating annual revenues of $35,000-65,000 for well-managed properties with 60-70% occupancy rates. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 15-20% for utilities and supplies, and 8-12% for property management if outsourced, resulting in net profit margins of 35-45% for most operators. Success factors include proximity to Zion National Park (driving 40% higher rates than city center properties), luxury amenities like pools and hot tubs, and professional photography and staging. A case study from 2023 showed a 4-bedroom home near Red Canyon generating $58,000 annually with $22,000 in expenses, yielding a 62% profit margin, while smaller 2-bedroom condos averaged $38,000 revenue with $18,000 expenses for 53% margins. Properties within 15 minutes of Zion's entrance consistently outperform those in downtown St. George by 25-35% in both occupancy and rates, with peak season (March-May, September-November) commanding premium pricing that can reach $400+ per night for luxury properties, making St. George one of Utah's most profitable short-term rental markets due to year-round tourism demand and limited hotel inventory.

Airbnb investments in St. George, Utah typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the area's proximity to Zion National Park and year-round tourism appeal. Properties in desirable neighborhoods like Green Valley or near Dixie State University can achieve occupancy rates of 65-75% annually, with average daily rates between $150-250 depending on property size and amenities. Initial profitability usually occurs within 18-24 months, assuming a 20-25% down payment on properties averaging $400,000-600,000 in the current market. The strong tourism infrastructure, growing population, and limited short-term rental supply in certain zones contribute to consistent performance, though investors should factor in seasonal fluctuations with peak months (March-May and September-November) generating 40-50% higher revenues than slower summer periods when temperatures exceed 100°F regularly.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties across markets including St. George, Utah. Local real estate agents who focus on Airbnb investment properties in the St. George area include Realty One Group Signature with agents like Brad Barber and Tiffany Richards who have experience with vacation rental investments, and ERA Brokers Consolidated agents such as Mike Ostler who specializes in investment properties. National services include Awning which provides end-to-end Airbnb investment services, RedAwning for vacation rental property management and acquisition, Vacasa for property management and investment guidance, and AirDNA for market analysis and property identification. Local property management companies that also help with acquisitions include Southern Utah Property Management and Zion Property Management, while investment-focused firms like BiggerPockets connects investors with local experts and Roofstock (though primarily focused on traditional rentals) occasionally features short-term rental opportunities. Additional local real estate professionals include agents from Coldwell Banker Premier Realty and RE/MAX Associates who have developed expertise in the vacation rental market given St. George's proximity to Zion National Park and its strong tourism industry.