Salt Lake City draws skiers, convention crowds and visitors to Temple Square, yet most of its residential neighborhoods are not places you can legally run a whole-home nightly rental. The STR investment in this region mostly happens up the canyons and in resort and recreation towns an hour or so away.
In short: LendingStreet finances short-term rentals in the Salt Lake City region with DSCR loans that, on some programs, qualify on projected nightly revenue instead of a long-term lease. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Because Salt Lake City restricts short-term rentals in most residential zones, many investors buy in Park City, Summit County, the Ogden Valley or other areas where nightly rentals are permitted, after confirming the local rules.
Salt Lake City generally does not allow rentals of less than 30 days in most of its residential zoning districts. Nightly rentals are more often possible in certain downtown and mixed-use zones with a business license, and the rules depend on the zone and the building. If you are looking at a house in Sugar House, the Avenues or Rose Park and planning to rent it by the night, assume it will not be allowed until the city confirms otherwise.
Neighboring cities in Salt Lake County, such as Millcreek, South Salt Lake, Murray, Holladay, Sandy and Draper, each have their own codes, and unincorporated county areas have separate rules. Many restrict STRs in single-family areas. Condo and HOA rules add another layer, and many downtown condo buildings prohibit stays under 30 days.
Park City and the surrounding parts of Summit County are the region's main nightly rental market, with ski resorts, summer recreation and the Sundance Film Festival. Nightly rentals are permitted in many Park City zones and resort areas with a business license, but some neighborhoods and HOAs restrict them, so check the specific property.
Other areas Salt Lake investors look at include the Ogden Valley around Eden and Huntsville near Snowbasin and Powder Mountain, Midway and the Heber Valley, Bear Lake, and southern Utah markets such as St. George, which allows STRs in designated areas. Each county and city sets its own licensing rules, and some have tightened them in recent years.
Utah taxes a primary residence at 55% of its market value through the residential exemption. A long-term rental that is a tenant's primary residence can qualify for that exemption, which keeps taxes lower on typical rentals. A short-term rental does not qualify, so it is taxed on its full market value.
When you convert a house from a long-term rental or owner-occupied home to an STR, expect the tax bill to rise. Budget the full, non-exempt tax figure from the county assessor in your DSCR math. Utah also charges transient room taxes and sales tax on short stays, and resort communities add their own.
This example is illustrative and not a quote. An investor buys a two-bedroom condo in a Park City-area resort complex that allows nightly rentals for $925,000. A third-party projection estimates $99,000 a year, about $8,250 a month. HOA dues are $720 a month, taxes without the residential exemption about $520 and an interior insurance policy $120.
At 70% LTV the loan is $647,500. Estimated principal and interest is about $4,417, so the full payment is about $5,777. The DSCR is about 1.43x on the full projection and about 1.14x with a 20% cut. Ski-season revenue is concentrated in a few months, so a cushion matters here.
| Item | Full projection | Projection cut 20% |
|---|---|---|
| Purchase price | $925,000 | $925,000 |
| Loan at 70% LTV | $647,500 | $647,500 |
| Average monthly revenue | $8,250 | $6,600 |
| Estimated principal and interest | $4,417 | $4,417 |
| HOA dues | $720 | $720 |
| Taxes and insurance | $640 | $640 |
| Total monthly payment | $5,777 | $5,777 |
| DSCR | About 1.43x | About 1.14x |
Mountain STRs earn most of their revenue from December through March, with a second, smaller peak in summer for hiking, biking and festivals. Spring and fall shoulder seasons can be slow. Lenders using a projection look at the annual total, but your reserves need to cover the quiet months.
In Salt Lake City itself, legal nightly rentals in downtown zones draw convention, business and event travelers more evenly through the year, with spikes around big events at the Salt Palace and the Delta Center.
Utah is a non-disclosure state, so sale prices are not recorded in public records. Appraisers rely on MLS data and other sources for comparable sales. For resort condos and unique mountain homes with few recent sales, that can make values harder to support, so expect a careful review.
Revenue projections for resort properties should be checked against real listings in the same complex or neighborhood, with similar size and amenities. If the estimate comes in low, our guide on low projections covers your options.
Where nightly rentals are not allowed, furnished rentals of 30 days or more can be an alternative inside the city. Traveling medical staff at the University of Utah and Intermountain hospitals, relocating professionals and visiting researchers often book monthly stays. Those leases are underwritten like long-term rentals rather than STRs on most programs.
Resort condos depend on the HOA's master policy and reserves, and some complexes limit rentals or require on-site management. Mountain homes face snow load, wildfire and access questions that affect premiums. Get the HOA documents and an insurance quote early in the contract period.
Send the address, price, local permit status, projected revenue and operating plan. The team checks the property against the program, runs the ratio on full and reduced revenue and tells you which programs fit. Use the form below or call (877) 298-1001.
In most residential zones, no. Salt Lake City generally restricts rentals under 30 days outside certain downtown and mixed-use zones. Confirm the zoning before you buy.
Park City and parts of Summit County, the Ogden Valley, the Heber Valley and other resort areas allow STRs in many zones with a license, subject to local and HOA rules.
Short-term rentals do not qualify for Utah's residential exemption, so they are taxed on full market value.
On some programs, yes. The loan can qualify on a third-party revenue projection instead of a lease.
Appraisers use MLS and other data instead of public sale records. Unique resort properties can take more work to value.
Up to 80% LTV on a purchase, subject to the ratio. High prices and HOA dues often make 65% to 75% a better fit.
Yes. LLC borrowers are standard, and you sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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