Is Sundance, Utah Good for Airbnb Investment?

To start an Airbnb in Sundance, Utah, begin by researching local regulations through Utah County and the Town of Sundance, as this area falls under county jurisdiction with potential municipal overlay requirements that may include business licenses, transient room taxes (typically 3-5%), and zoning compliance for short-term rentals in residential areas. Obtain necessary permits including a Utah County business license ($15-50), state tax registration with the Utah State Tax Commission, and potentially a conditional use permit if required by local zoning ordinances. Find property by focusing on areas near Sundance Mountain Resort and scenic locations, with typical investment properties ranging $400,000-$800,000 for cabins or condos suitable for vacation rentals. Furnish the property with mountain-appropriate decor, outdoor gear storage, hot tub or fireplace amenities, high-speed internet, and winter/summer recreational equipment to appeal to ski and hiking tourists. List your property on Airbnb, VRBO, and local Utah vacation rental sites, emphasizing proximity to Sundance Resort (owned by Robert Redford since 1969), Park City (30 minutes), and year-round outdoor activities, with competitive pricing around $150-400 per night depending on size and season. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with mountain properties, implementing keyless entry systems, and maintaining compliance with Utah's short-term rental tax requirements including monthly remittance of transient room taxes to Utah County.

To identify profitable STR properties in Sundance, Utah, focus on locations within 2-3 miles of Sundance Mountain Resort and along scenic routes like Alpine Loop Road, prioritizing properties with mountain or valley views and easy access to skiing, hiking, and Provo Canyon attractions. Seek properties with 3-4 bedrooms, hot tubs, fireplaces, updated kitchens, and outdoor spaces that can accommodate 6-10 guests, as these features command premium rates of $200-400+ per night during peak ski season (December-March) and summer months (June-September). Analyze comparable properties on Airbnb and VRBO within a 5-mile radius, targeting areas where occupancy rates exceed 65% annually and average daily rates are $150+ in shoulder seasons, while researching competition density to avoid oversaturated pockets near the resort base. Utilize AirDNA for market analytics, STR Helper for performance tracking, and local tools like Utah County property records and Ski Utah's visitor data to assess seasonal demand patterns, with successful properties typically generating $60,000-120,000 annually when properly managed and marketed to outdoor enthusiasts visiting this premier mountain destination just 45 minutes from Salt Lake City.

To obtain an Airbnb/STR permit in Sundance, Utah, you must first contact the Utah County Planning Department since Sundance operates under county jurisdiction rather than as an incorporated city. Begin by submitting a Conditional Use Permit application through Utah County's online portal or in-person at 2001 S State St, Provo, UT 84606, as short-term rentals require special approval in residential zones. Required documents include a completed CUP application, site plan showing parking and access, proof of property ownership, floor plans indicating maximum occupancy, septic system approval if applicable, and a neighborhood impact statement. The application fee is approximately $1,500-$2,000 plus additional fees for inspections and hearings. You must also obtain a Utah County business license ($50-$100 annually) and register for Utah state and local taxes. The timeline typically ranges from 60-90 days, including a mandatory public hearing where neighbors can provide input. Specific Sundance area requirements include adherence to mountain residential zoning restrictions, adequate parking for guests (typically 2 spaces minimum), compliance with fire safety codes for mountain properties, septic system capacity verification, and maintaining the rural character of the area. Properties must also meet Utah County health department standards and may require additional inspections due to the mountainous terrain and seasonal access considerations.

Short-term rentals (STRs) in Sundance, Utah are generally legal but operate under Wasatch County regulations since Sundance is an unincorporated community. As of 2023, Wasatch County requires STR operators to obtain a conditional use permit and business license, with properties limited to a maximum occupancy based on bedrooms plus two additional guests. The county prohibits STRs in certain residential zones and requires a 300-foot separation between STR properties in some areas. Recent changes in 2022-2023 included stricter noise ordinances, mandatory local contact person requirements available 24/7, and enhanced parking regulations requiring one space per bedroom plus two additional spaces. Properties must also comply with fire safety codes, septic system capacity limits, and cannot operate as event venues or wedding locations. The county has implemented a complaint-driven enforcement system and can revoke permits for repeated violations, with particular attention to noise complaints and overcrowding issues that have increased due to Sundance's proximity to ski resorts and recreational areas.

The most lucrative Airbnb investment areas in Sundance, Utah center around the Sundance Mountain Resort vicinity and the nearby Provo Canyon corridor, particularly properties within 2-3 miles of the resort base. The immediate Sundance Resort area commands premium rates year-round due to its proximity to world-class skiing, the renowned Sundance Film Festival held annually in January, and Robert Redford's artistic community that attracts cultural tourists. The North Fork Provo Canyon area offers excellent investment potential with properties featuring mountain and canyon views while remaining accessible to both Sundance Resort and nearby Timpanogos Cave National Monument. The Alpine Loop scenic byway region provides strong summer rental demand from outdoor enthusiasts accessing hiking trails, fishing spots, and fall foliage tours, while winter brings consistent ski traffic. Properties near the Sundance zip line and mountain biking trails see robust summer bookings from adventure tourists, and the area's proximity to Brigham Young University in Provo (15 minutes away) generates steady demand from visiting families and university-related business travelers. The Theater in the Pines area attracts summer visitors for outdoor performances, while properties with hot tubs and mountain views near the Owl Bar location capitalize on romantic getaway and corporate retreat markets throughout the year.

Airbnb properties in Sundance, Utah are subject to multiple lodging taxes including Utah's state transient room tax of 4.25% and Summit County's transient room tax of 3%, for a combined rate of approximately 7.25% on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began operating in Utah around 2018. Airbnb remits the collected taxes monthly to the Utah State Tax Commission and Summit County on behalf of hosts, though individual hosts remain responsible for registering with local tax authorities and ensuring compliance. Properties rented for 30 days or longer are generally exempt from transient occupancy taxes, and some jurisdictions may offer exemptions for stays by government employees or certain non-profit organizations. Hosts should register for a Utah sales tax license and Summit County transient room tax permit, and while Airbnb handles most collection and remittance, hosts are advised to maintain records and verify that all applicable taxes are being properly collected and remitted.

To start an Airbnb in Sundance, Utah, expect total costs around $850,000-$950,000. Property purchase represents the largest expense at approximately $750,000-$800,000 for a median-priced mountain home or condo suitable for short-term rentals in this ski resort area. Furnishing costs typically run $25,000-$35,000 for a complete setup including beds, linens, kitchen essentials, living room furniture, and outdoor gear storage. Initial setup costs including professional photography, listing optimization, and welcome amenities total around $3,000-$5,000. Permits and fees vary but expect $1,500-$3,000 for business licenses, short-term rental permits, and potential HOA approvals. Insurance costs approximately $3,000-$4,000 annually for short-term rental coverage. Utility setup and deposits for electricity, gas, water, internet, and cable run about $1,000-$2,000. First six months of operating costs including utilities ($800/month), cleaning services ($150 per turnover), supplies and maintenance ($300/month), platform fees (3% of bookings), and property management if used (20-30% of revenue) total approximately $15,000-$25,000 depending on occupancy rates and seasonal demand in this popular Park City-adjacent destination.

Airbnb properties in Sundance, Utah demonstrate strong seasonal profitability, with average nightly rates ranging from $200-400 during peak ski season (December-March) and $150-250 during summer months, generating annual revenues of $45,000-75,000 for well-positioned properties. Operating expenses typically include 25-30% for cleaning and maintenance, 3% Airbnb service fees, 15-20% for utilities and supplies, and 10-15% for property management if outsourced, resulting in net profit margins of 35-45% for owner-operated units. Success factors include proximity to Sundance Resort (properties within 2 miles command 20-30% premium rates), luxury amenities like hot tubs and mountain views, and professional photography showcasing the alpine setting. A typical 3-bedroom mountain cabin purchased for $800,000 in 2019 generated $65,000 in gross rental income in 2022 with $28,000 in expenses, yielding a 4.6% cash-on-cash return plus property appreciation of 8-12% annually. Properties that cater to both winter ski visitors and summer outdoor enthusiasts, maintain 5-star ratings, and offer unique experiences like fire pits or game rooms achieve occupancy rates of 70-80% compared to 50-60% for basic accommodations, with the most successful hosts reinvesting 15-20% of profits into property upgrades and guest experience enhancements.

Airbnb investments in Sundance, Utah typically generate annual ROI of 12-18% due to the area's proximity to Sundance Resort and Park City ski areas, with peak winter season rates averaging $300-500 per night for well-appointed properties. Cash-on-cash returns generally range from 8-14% annually, with luxury cabins and ski-accessible properties achieving the higher end of this range during the 2022-2024 period. Properties in Sundance usually reach profitability within 18-24 months, with the strongest performance coming from 3-4 bedroom mountain homes that can capitalize on both winter ski season (December-March) and summer outdoor recreation demand. The market has shown consistent growth since 2020, with occupancy rates averaging 65-75% annually for properties managed through platforms like Vacasa and RedAwning, though investors should expect seasonal cash flow variations with 70% of annual revenue typically generated during the November-April ski season.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental investment properties in Sundance, Utah, offering comprehensive market analysis and property recommendations. Local real estate agents like those at Summit Sotheby's International Realty and Engel & Völkers Park City have extensive experience with vacation rental properties in the Sundance area, leveraging their knowledge of ski resort markets and seasonal rental patterns. Vacasa, a national vacation rental management company, provides end-to-end services including property acquisition consulting and market analysis for investors looking in the Sundance market. AirDNA offers detailed market data and analytics specifically for short-term rental investments in Utah mountain communities, while Mashvisor provides investment property analysis tools that cover the Sundance area. Local companies like Utah Mountain Properties and Deer Valley Real Estate specialize in resort area investments and understand the unique dynamics of properties near Sundance Resort. RedAwning and AvantStay also provide market insights and property management services that can help investors identify profitable opportunities in this premium Utah mountain destination, with many of these services emerging and expanding significantly between 2018-2023 as the short-term rental market matured.