Utah gives long-term rentals a tax break most states reserve for homeowners. A home leased to a tenant as their primary residence can qualify for the same 45% exemption as an owner's home. A nightly rental does not.
In short: LendingStreet offers jumbo DSCR loans of about $1.5M to $5M+ on Utah rentals with 1 to 8 units, qualified on rent with no W-2s or tax returns. Whether the property is leased long-term or rented nightly changes the Utah tax bill substantially, and STR rules vary sharply between Salt Lake City, Park City and St. George. Max LTV on larger loans varies by program.
Along the Wasatch Front, Federal Heights, the Avenues, Sugar House, Holladay, Cottonwood Heights and Draper have large homes, and Lehi and the rest of the Silicon Slopes corridor have newer executive homes near tech employers.
Park City, including Deer Valley, Old Town and Canyons Village, is the state's top resort market, with homes and condos that rent nightly in ski season. St. George, with Entrada, Kayenta and Snow Canyon, draws winter visitors and retirees, and Moab is a smaller desert recreation market.
Utah's outdoor access adds to demand at the top of the market. Homes near Big and Little Cottonwood canyons lease to people who want quick access to the ski resorts, and St. George draws winter residents from colder states. Those tenants often sign seasonal or furnished leases, so be clear about the lease type when you apply.
| Area | Typical high-value property | What to check |
|---|---|---|
| Holladay, Federal Heights, Draper | Large homes | Primary residential exemption filing, comparable leases |
| Park City, Deer Valley, Canyons | Ski homes and condos | Nightly rental zoning, HOA rules, full tax value |
| St. George, Entrada, Kayenta | Resort and desert homes | STR zones, HOA rules, heat and water |
Utah taxes primary residential property on 55% of its value, a 45% exemption. A rental leased to a tenant who lives there as their primary home can qualify, but the owner may need to file a declaration with the county. Short-term rentals and second homes are taxed on full value, so a Park City nightly rental can carry a much larger bill than a similar Salt Lake home leased long-term.
Utah is also a nondisclosure state with no real estate transfer tax. Sale prices are not public, so appraisers rely on listing data, and unique mountain or luxury homes can be harder to value. Recent comparable sales and leases help the appraisal.
Utah's growth explains why so many rentals here reach jumbo values. The Wasatch Front has added jobs in technology, health care and finance, and new construction has pushed into Lehi, Saratoga Springs and Herriman. Rents have risen, but values rose faster in many neighborhoods, so a large long-term rental can still show a tight ratio. Lower leverage is common on the biggest files.
This example is illustrative and not a quote. An investor buys a Holladay home for $2,000,000 and leases it long-term for $10,500 a month. With the primary residential exemption filed for the tenant, taxes are budgeted at $900 a month; insurance is $350. Two loan amounts are shown below, each with estimated principal and interest over 30 years.
At 70% LTV the loan is $1,400,000, estimated principal and interest is about $9,432, the total payment is about $10,682 and DSCR is about 0.98x. At 65% the loan is $1,300,000, the payment is about $10,008 and DSCR is about 1.05x. At 70% the ratio is just under the 1.0x standard minimum; at 65% it clears. Without the exemption the tax line would be much higher, which is why the filing matters on Utah long-term rentals.
| Item | 70% LTV | 65% LTV |
|---|---|---|
| Purchase price | $2,000,000 | $2,000,000 |
| Loan amount | $1,400,000 | $1,300,000 |
| Down payment | $600,000 | $700,000 |
| Estimated principal and interest | $9,432 | $8,758 |
| Taxes and insurance | $1,250 | $1,250 |
| Total monthly payment | $10,682 | $10,008 |
| Monthly rent | $10,500 | $10,500 |
| DSCR | About 0.98x | About 1.05x |
Salt Lake City restricts short-term rentals of less than 30 days in most residential zones, so most Salt Lake jumbo files are underwritten on long-term leases. Park City allows nightly rentals in many areas, but zoning, HOA rules and licensing apply, and some neighborhoods prohibit them.
St. George limits short-term rentals to certain zones and resort communities. Summit and Wasatch counties have their own licensing. Some programs qualify on projected STR revenue where the property is allowed to operate that way.
Not every large Utah loan is a resort home. 5 to 8 unit buildings in Salt Lake's Avenues and Sugar House, Provo and Ogden, and groups of townhomes in Utah County, also reach jumbo balances.
A blanket portfolio loan can combine five or more rentals, and some programs include properties in Idaho or Nevada.
Underneath, a jumbo DSCR loan works like any rent-based loan: a 620 minimum score, LLC borrowers welcome, no W-2s or tax returns, and a payment that the rent should cover at 1.0x or more on standard programs.
The differences come with size. Expect leverage below the standard 80% purchase and 75% cash-out ceilings, larger reserve requirements and, on some programs, a second valuation. Each large loan is priced on its own facts, so terms vary by program.
Utah has no real estate transfer tax. Title insurance, escrow and recording fees apply, and HOA transfer fees can be meaningful in resort communities. Lender costs and reserves are separate.
Gathering these early keeps the appraisal and underwriting moving.
Our investor loans are business-purpose loans on non-owner-occupied property. We finance DSCR loans on 1 to 8 unit rentals in Salt Lake, Summit, Utah, Washington and Wasatch counties and across Utah.
Send the address, price or value, rent and the leverage you want. We will run the ratio on realistic taxes and insurance, test it at more than one loan amount and come back with options. Call (877) 298-1001 or use the form below.
Long-term rentals leased as a tenant's primary home can qualify, often with a county declaration. Short-term rentals and second homes are taxed on full value.
Stays under 30 days are restricted in most residential zones, so plan on long-term leases there.
Yes, if it is non-owner-occupied investment property and zoning and HOA rules allow nightly rentals.
No. Utah is a nondisclosure state with no real estate transfer tax.
Purchase leverage goes up to 80% LTV on standard programs, but on jumbo balances it is often lower and varies by program, so plan for a larger down payment.
Yes, 30-year terms are available on DSCR loans, including larger balances, subject to program review.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a home you live in does not qualify.
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