Provo fills hotel rooms for BYU graduations, football weekends, conferences and visits from family, and Sundance sits just up Provo Canyon. But Provo's residential neighborhoods are not where most investor nightly rentals operate. For Utah County investors, the STR market is usually over the mountain in the Heber Valley or farther up in Park City.
In short: LendingStreet finances Utah short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs, with a 620 minimum credit score, no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum. Provo regulates short-term rentals closely through zoning and rental licensing, so investor STRs inside the city are limited; Midway, Heber City, the Sundance area, Park City and Summit County have designated nightly rental areas or licensing, each with its own rules.
Provo regulates rental housing through its zoning code and a residential rental licensing program, and many of its residential zones do not allow a short-term rental as a standalone investor use. The city also enforces limits on how many unrelated adults may live in a unit, a long-running issue near BYU. Rules have been revised over time, so before buying, ask Provo's Development Services department what is allowed on the specific parcel and whether a license is available.
Utah state law limits how cities can use an online listing alone as evidence of a violation, but it does not override local zoning. A Provo property that cannot legally operate as a nightly rental will be underwritten on long-term rent, which in Provo usually means family or student leases.
Orem, Springville, Lehi and other Utah County cities set their own rules, and HOAs in newer subdivisions often ban rentals under 30 days.
Midway and Heber City in Wasatch County are about 30 to 45 minutes from Provo through Provo Canyon, with access to Deer Creek and Jordanelle reservoirs, golf, hot springs and the ski resorts at Park City and Deer Valley. Wasatch County and its cities allow nightly rentals in certain zones and developments. Park City and the rest of Summit County have long allowed nightly rentals in many areas with a business license, though at much higher prices.
Closer to home, the Sundance area and some cabin communities in the canyons draw summer and winter guests, and farther south, St. George and the areas around Zion attract a different year-round crowd.
| Area | Main seasons | What to verify |
|---|---|---|
| Provo | BYU events, conferences, family visits | Zoning and rental licensing; most residential zones restrict |
| Midway, Heber City | Ski season, summer lakes and golf | Nightly rental zones, HOA rules |
| Park City, Summit County | Ski season, summer, festivals | Business license, HOA, high prices |
| Canyon cabin areas | Summer and winter | County zoning, road access, wells |
Short stays in Utah are subject to state and local sales tax plus transient room taxes, and some resort communities add their own resort taxes. Owners register with the Utah State Tax Commission, though platforms collect on many bookings.
The bigger tax issue for STR owners is property tax. Utah gives a residential exemption on primary residences, and a long-term rental where the tenant lives full time can usually qualify. A short-term rental generally does not, so it is taxed on full value. When you compare a long-term rental with an STR, the STR's tax bill can be noticeably higher on the same house. Confirm with the county assessor.
Heber Valley and Park City revenue peaks in the ski months, with the Christmas and New Year holidays and Presidents' Day weekend at the top. Summer is strong too, with lake, golf and festival traffic. April, May, October and November are the shoulder months, when occupancy drops and nightly prices soften.
In Provo itself, demand spikes around BYU commencement, homecoming and football weekends, and education week, then falls between events. That pattern makes Provo a better fit for mid-term furnished rentals of 30 days or more to visiting faculty, medical staff and relocating families, which can be financed on long-term rent.
This example is illustrative and not a quote. An investor buys a townhome in a Midway development that allows nightly rentals for $900,000. A third-party projection estimates $85,000 a year in gross revenue, about $7,083 a month averaged over the year.
Because the home is a short-term rental, taxes are budgeted without the primary residential exemption at $450 a month. Insurance is $210 and HOA dues are $300. At 75% LTV the loan is $675,000, estimated principal and interest is about $4,836, and the total payment is about $5,796. DSCR on projected revenue is about 1.22x.
At 70% LTV the loan is $630,000, the payment about $5,473 and DSCR about 1.29x.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $675,000 | $630,000 |
| Estimated principal and interest | $4,836 | $4,513 |
| Taxes, insurance and HOA | $960 | $960 |
| Total payment | $5,796 | $5,473 |
| Projected monthly revenue | $7,083 | $7,083 |
| DSCR | About 1.22x | About 1.29x |
Homes in the Heber Valley and the canyons come with mountain-specific issues: snow load and snow removal, steep driveways, wildfire risk, and sometimes wells, septic and shared water rights. Many new STR-friendly developments have HOAs that manage snow, landscaping and rental rules, which helps operations but adds dues that count in the payment.
Insurance carriers have tightened coverage in some wildfire-prone areas of the West, so get a quote early.
On programs that use projected STR income, the figure usually comes from a third-party revenue report or an appraiser's analysis of nearby comparable listings. In the Heber Valley, the best comparables are legal nightly rentals in the same development or zone. If the projection looks low, see our guide to low AirDNA projections. Once you have a booking history, an STR DSCR refinance can use actual results.
Send the address, price, the city or county's nightly rental status for the parcel, HOA rules and your revenue estimate. The team will confirm whether the file can use projected revenue and come back with options. Call (877) 298-1001 or use the form below.
Our investor loans are business-purpose loans on non-owner-occupied property, so a second home you plan to use often is not a fit.
Provo regulates short-term rentals closely, and many residential zones do not allow them as a standalone investor use. Ask the city about the specific parcel before buying.
Often in Midway, Heber City, Park City and Summit County, where nightly rentals are allowed in certain zones or with a license.
Generally no. The exemption applies to primary residences, which can include long-term rentals, but not short-term rentals. Confirm with the county assessor.
State and local sales tax plus transient room taxes, and resort taxes in some areas.
On some programs, yes, if the property can legally operate as a nightly rental.
Ski season, especially the winter holidays, and summer. Spring and fall are slower.
Yes. LLC borrowers are standard, and you sign for the loan personally.
620.
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