Utah, with its natural scenic parks, is a known skiing destination. As Utah’s tourism reopens in 2022, is investing in Airbnb Utah a good idea?
Table of contents
- Why Is Airbnb Utah a Profitable Market?
- Things to Do in Utah
- Airbnb Utah Market Data
- Where Is Airbnb Legal Utah?
- Best Cities in Utah for Airbnb Investment
- Subscribe to Mashvisor to Invest in Airbnb Utah
Before the pandemic, the tourism industry in Utah experienced a 5.1% increase every year since 2015. Utah gained a $1.34 billion tourism tax revenue in 2019, with record-high visits from both international and local visitors. This year, Utah expects to recover tremendously from the pandemic as more vaccinated tourists flock to the Beehive State.
The housing market in Utah, especially in Salt Lake City, will remain hot in 2022. While we anticipate seeing a slight decrease in the growth rate of Utah’s property prices compared to last year, the Utah real estate market will still be a sellers’ market. On top of this, Utah’s travel and tourism industry is bouncing back. This means short-term rental investors will see a better revenue and a more improved return on investment this year from guest bookings.
Why Is Airbnb Utah a Profitable Market?
Tourism is one of the most profitable industries in Utah. It’s also one of the primary reasons why the Utah Airbnb market is experiencing a healthy recovery from the pandemic. Early this year, Utah saw more visitor spending as people visit outdoor destinations like the state’s national parks and skiing resorts. This is why investing in a vacation rental property in Utah is highly recommended in 2022.
Reasons why you should invest in the Utah Airbnb market:
Utah Is Frequented by Winter Holiday-goers
There are many reasons why investing in Airbnb Utah is a good idea. For one, Utah is a famous skiing and snowboarding destination, with its mountains piling up an average of 500 inches of snow every year. Thus, the state is home to astonishing ski resorts. No wonder Utah is a favorite go-to place for those who love snow sports and adventures.
Utah Is Perfect for Nature Lovers
Utah is also known for its great outdoor spaces and boasts a variety of picturesque national and state parks. It is rich in natural wonders, making it a top tourist destination for nature lovers. Most visitors who come to Utah to check out the great outdoors often search “Airbnbs near me” to find a place to stay. Because of this, buying an investment property that is close to Utah’s outdoor attractions would be a good decision.
Utah Is a Great Place to Go for a Scenic Drive
Utah is strategically positioned and bordered by other states, including Idaho, Colorado, Nevada, Arizona, and Wyoming. Because of Utah’s landlocked position, it’s easy for local tourists to take a scenic road trip through Utah.
Visitors Can Find Many Activities to Do in Utah
Visitors also flock to Utah to experience its natural beauty, arts, culture, and other outdoor activities such as hiking, mountain biking, camping, and ATV riding. Tourists also love to go to one of Utah’s lakes where they can bask in the water, have a family picnic, or enjoy a boat ride. With a wide selection of tourist attractions and a variety of things to do in Utah, tourists keep coming back to the state, and this is good for Utah’s Airbnb business.
Learn More: Utah Housing Market Forecast 2022—The Complete Guide
Things to Do in Utah
Buying a Utah investment property is a clever business decision because Utah welcomes an influx of visitors all year round. There’s no shortage of activities in the Beehive State—people will find something interesting to do in Utah any time of the year. The best time to visit Utah varies depending on the kind of activities and experiences visitors desire. But one thing’s for sure—Utah is a hot tourist destination no matter what the season.
According to an article from rove.me, summer is the most touristic season in Utah. It’s when people come to experience spectacular activities like the Bonneville Speed Week and stargazing. However, many visitors also come to Utah during other seasons. This is one reason that makes Airbnb Utah a worthwhile investment.
In winter, both local and international tourists visit Utah to explore ice castles, enjoy the Mystic Hot Springs, and experience some skiing or snowboarding activities in the snowy mountains. Spring and fall are the seasons that are great for vacationers who want to see scenic views, like blooming flowers, active wildlife, and colorful foliage.
Here are the famous tourist attractions and best things to do in Utah:
National and State Parks
Utah is famous for its national and state parks that offer Instagram-worthy sceneries. These parks are one of the reasons why Utah is a perfect destination for those who love to reconnect with nature. Visitors can do several things in the parks—from having a scenic drive, hiking or strolling through the trails, camping, to simply taking in the beautiful view.
Here are some of the popular parks that visitors wouldn’t want to miss:
- Zion National Park
- Arches National Park
- Monument Valley Navajo Tribal Park
- Canyonlands National Park
- Bryce Canyon National Park
Utah boasts a surprisingly considerable number of lakes despite it being located in the high desert. Some of these are man-made reservoir lakes. The lakes offer a diverse look and feel, and the activities you can do vary depending on the kind of lake you visit. Some lakes are good for fishing, others are suited for swimming and wading, while some are best for boating. Many tourists prefer to stay in cabin rentals in Utah that are near these lakes.
Here are five of the best lakes in Utah:
- Great Salt Lake
- Bear Lake
- Lake Powell
- Quail Creek Reservoir
- Utah Lake
Utah is a snow haven in the United States. It has around 14 ski areas, most of which are just an hour’s drive from the city proper. Utah ski resorts are among the most visited destinations during the cold season. If you are planning to invest in Airbnb Utah, you can choose a location near these ski resorts to ensure that you’ll be booked even during the winter.
These are a few of the famous ski and snowboarding mountain resorts in Utah:
- Park City
- Powder Mountain
- Deer Valley
Utah has a rich population of wildlife creatures and seeing wild animals is one of the best activities that visitors can do during the spring season. Utah is home to different species of birds, as well as other animals including deer, bison, elk, moose, pronghorn, mountain goat, turkeys, bighorn sheep, and waterfowl.
Here are the Utah destinations that are famous for their wildlife:
- Bear River Migratory Bird Refuge
- Antelope Island State Park and Causeway
- Fish Springs National Wildlife Refuge
- Mirror Lake Scenic Byway
- Scott M. Matheson Preserve
Airbnb Utah Market Data
Aside from its thriving tourism industry, Utah’s economy is generally booming. The state’s reputation as a growing tech hub is one of the factors that contributed to over 72,500 new jobs in 2021. Further, Utah has seen a steady population growth, which is one of the drivers of the Utah real estate market. Because of this, it’s a good time to buy an investment property here.
Tourist attractions are not the only basis to determine whether a place is good for short-term rentals or not. Another way to find out if Utah is a good location for investing in Airbnb rentals is to check the state’s short term rental analytics, data, and trends. Before you decide to invest in Utah vacation rentals, it’s crucial to learn the Airbnb occupancy rate, cash on cash return, and cap rate. These factors are essential if you want to know whether Airbnb Utah will be a profitable investment.
Fortunately, Mashvisor has this information ready.
Utah Real Estate Market Data as of March 2022
- Number of Airbnb Listings: 9,126
- Monthly Airbnb Rental Income: $3,238
- Airbnb Cash on Cash Return: 1.72%
- Airbnb Cap Rate: 1.75%
- Airbnb Daily Rate: $248
- Airbnb Occupancy Rate: 53%
- Number of Listings for Sale: 1,089
- Median Property Price: $1,007,657
- Average Price per Square Foot: $575
- Days on Market: 74
- Walk Score: 42
As per Mashvisor’s March 2022 data, the traditional cash on cash return in Utah is 0.69% while the traditional cap rate is 0.70%. Since the Airbnb cash on cash return (1.72%) is higher than the traditional cash on cash return, investing in Airbnb Utah is generally considered a good idea.
Do you want to invest in Utah real estate but don’t know how to begin? Mashvisor can help you find the best investment properties in Utah. You can use the investment property search feature to get started.
Where Is Airbnb Legal Utah?
The good news is, it’s legal to operate a short term rental property in all cities in Utah as long as it’s located within the approved zoning ordinances. Short-term rentals refer to any space available for rent for a period of 30 consecutive days or less. To operate a vacation rental in Utah legally, you should first obtain a registered license.
Related: Short Term Rental License—What Real Estate Investors Need to Know
Utah Short Term Rental Regulations
While it’s legal to rent out a vacation home in Utah, Airbnb rental property owners should be aware of the laws that govern the particular city where the property is located. Some cities may have different rules and regulations compared to others. Make sure to know these rules before you buy a Utah investment property.
In general, the following are the rules and regulations to operate a short term rental business in the state of Utah:
- Vacation rental owners should obtain a license to operate a short-term rental in Utah.
- The vacation property should be located in an approved zoning district, depending on the city’s ordinances.
- The license should be renewed annually or a new license should be obtained if there is a change in ownership.
- The property must adhere to the city’s zoning ordinances, building and housing standards, advertising rules, and other regulations imposed by the local city government and Homeowner Associations in Utah.
- An additional short-term rental tax should be charged to guests. Charges such as cleaning and pet fees are also taxable.
Best Cities in Utah for Airbnb Investment
Choosing the right city for Airbnb investing is crucial if you want to make sure that you’ll make a profitable investment. The best cities for vacation rentals are those that have more lenient short-term rental rules and are close to most tourist attractions. It’s also best to choose a location that’s near public transport and basic amenities.
Related: How to Find the Best Area for Airbnb Investment
According to Mashvisor’s Airbnb analysis and data as of March 2022, here are the top seven best cities for short-term rentals based on Airbnb cash on cash returns:
- Number of Airbnb Listings: 38
- Monthly Airbnb Rental Income: $5,981
- Airbnb Cash on Cash Return: 4.57%
- Airbnb Cap Rate: 4.63%
- Airbnb Daily Rate: $241
- Airbnb Occupancy Rate: 63%
- Number of Listings for Sale: 16
- Median Property Price: $1,058,031
- Average Price per Square Foot: $382
- Days on Market: 24
- Walk Score: 27
Airbnb Ivins Utah is one of the best vacation rental markets in the state because it’s home to various attractions. Ivins is home to Red Mountain, Snow Canyon State Park, Tuacahn Amphitheatre, and so much more.
- Number of Airbnb Listings: 8
- Monthly Airbnb Rental Income: $2,091
- Airbnb Cash on Cash Return: 4.13%
- Airbnb Cap Rate: 4.29%
- Airbnb Daily Rate: $147
- Airbnb Occupancy Rate: 50%
- Number of Listings for Sale: 12
- Median Property Price: $311,408
- Average Price per Square Foot: $140
- Days on Market: 45
- Walk Score: 47
Investing in Airbnb Duchesne Utah is also a good idea. Duchesne is home to various wildlife, such as chipmunks, squirrels, pack rats, moles, prairie dogs, gophers, rabbits, skunks, porcupines, coyotes, foxes, ring-tailed cats, and more.
3. West Valley City
- Number of Airbnb Listings: 38
- Monthly Airbnb Rental Income: $2,440
- Airbnb Cash on Cash Return: 3.79%
- Airbnb Cap Rate: 3.89%
- Airbnb Daily Rate: $105
- Airbnb Occupancy Rate: 59%
- Number of Listings for Sale: 13
- Median Property Price: $434,261
- Average Price per Square Foot: $227
- Days on Market: 70
- Walk Score: 43
You can also find many Airbnb investment opportunities in West Valley City Utah. This area is frequented by tourists who love arts and sports. West Valley City is home to Utah Cultural Celebration Center, The Ridge Golf Course, Rocky Mountain Raceways, Stonebridge Golf Course, Valley Fair Mall, and USANA Amphitheatre.
- Number of Airbnb Listings: 264
- Monthly Airbnb Rental Income: $5,091
- Airbnb Cash on Cash Return: 3.73%
- Airbnb Cap Rate: 3.77%
- Airbnb Daily Rate: $244
- Airbnb Occupancy Rate: 65%
- Number of Listings for Sale: 64
- Median Property Price: $922,175
- Average Price per Square Foot: $369
- Days on Market: 63
- Walk Score: 56
Hurricane UT is around 20 miles away from the entrance to the Zion National Park. There is also a high demand for Airbnb Hurricane Utah because it is near top attractions, such as the Sand Hollow State Park, Hurricane Cliffs Trail System, and Hurricane Valley Pioneer Museum.
- Number of Airbnb Listings: 173
- Monthly Airbnb Rental Income: $2,260
- Airbnb Cash on Cash Return: 3.08%
- Airbnb Cap Rate: 3.16%
- Airbnb Daily Rate: $110
- Airbnb Occupancy Rate: 62%
- Number of Listings for Sale: 26
- Median Property Price: $407,076
- Average Price per Square Foot: $216
- Days on Market: 18
- Walk Score: 41
Ogden is a gateway to ski resorts such as the Snowbasin, Nordic Valley, and Powder Mountain. Investing in Airbnb Ogden Utah will get your property occupied even in winter.
- Number of Airbnb Listings: 187
- Monthly Airbnb Rental Income: $2,618
- Airbnb Cash on Cash Return: 2.96%
- Airbnb Cap Rate: 3.02%
- Airbnb Daily Rate: $147
- Airbnb Occupancy Rate: 61%
- Number of Listings for Sale: 23
- Median Property Price: $581,872
- Average Price per Square Foot: $312
- Days on Market: 81
- Walk Score: 60
Kanab is a commercial center that is home to a farming, ranching, and recreational community. Airbnb Kanab Utah offers a good deal of opportunities to vacation rental investors. Kanab offers amazing red rock formations and unique local attractions, making it one of the places often visited by outdoor goers.
- Number of Airbnb Listings: 40
- Monthly Airbnb Rental Income: $1,671
- Airbnb Cash on Cash Return: 2.94%
- Airbnb Cap Rate: 3.05%
- Airbnb Daily Rate: $111
- Airbnb Occupancy Rate: 50%
- Number of Listings for Sale: 12
- Median Property Price: $308,383
- Days on Market: 63
- Walk Score: 66
Vernal is a perfect place for a family-friendly vacation. It is near Dinosaur National Monument, Utah Field House of Natural History, and State Park Museum. The Airbnb Vernal Utah can be a profitable investment especially if you find a property that’s close to these attractions.
Subscribe to Mashvisor to Invest in Airbnb Utah
Utah is home to a wide selection of tourist attractions. The state welcomes a large number of visitors year-round, making it one of the best short term rental markets in the country. Mashvisor can help you find the best Airbnb Utah property by providing in-depth Airbnb analysis and tools like the Airbnb calculator. Check out Mashvisor’s subscription plans and services to get started.
You can search the Mashvisor database, which contains thousands of properties, including cabins for sale in Utah. Here, you will be able to check out the real estate data analysis of the property you are interested in. You’ll have an overview of the neighborhood comps and comparable rental income to know the best rental strategy for a particular investment property.
If you’re ready to get started and make the best out of your Airbnb investment, schedule a free demo or start a free trial now.