Utah has two vacation rental engines: the Wasatch ski resorts and the national parks of the south. In both, the zoning map decides where a nightly rental can operate.
In short: LendingStreet finances Utah short-term rentals with DSCR loans that can qualify on projected rental revenue on some programs, starting at $150,000 with no W-2s or tax returns and LLC borrowers allowed. Many Utah cities allow STRs only in designated zones or resort subdivisions, and Salt Lake City restricts stays under 30 days in most residential areas. Rentals do not get the 45% primary residence property tax exemption.
Park City, with Park City Mountain and Deer Valley, is Utah's highest-value STR market, and nearby Kamas and Heber see spillover demand. Ogden Valley around Eden, close to Powder Mountain and Snowbasin, Brian Head in the south and the Cottonwood Canyon resorts also draw skiers.
In southern Utah, St. George and Washington County serve visitors to Zion, Snow Canyon and Sand Hollow, with many resort communities built specifically for nightly rentals. Moab is the base for Arches and Canyonlands, and Springdale sits at Zion's entrance. Bear Lake and Garden City are a summer lake market.
| Market | Typical property | What drives bookings | Rule to check |
|---|---|---|---|
| Park City | Condos, townhomes, ski homes | Skiing, Sundance, summer events | Zoning and HOA rules; nightly-rental zones |
| St. George and Washington County | Resort-community homes, townhomes | Zion, golf, winter sun | STRs limited to approved zones |
| Moab | Townhomes, homes | Arches, Canyonlands, off-roading | New nightly rentals heavily limited |
| Salt Lake City | Single-family homes, condos | Business, events, ski access | Stays under 30 days restricted in most zones |
Most Utah cities limit STRs to specific zones or overlay districts. St. George and nearby cities allow nightly rentals in designated resort zones and communities, and Moab and Grand County have sharply limited new nightly rentals in residential areas. Salt Lake City generally does not allow stays under 30 days in its residential zones.
A Utah state law limits how cities can use a listing on a rental website as the sole evidence of a violation, but it does not override zoning. In Park City and Summit County, check zoning, condo rules and whether a nightly rental license is required for the specific unit.
A standard DSCR loan compares a property's monthly rent with its full monthly payment: principal, interest, taxes, insurance and any HOA dues. For a short-term rental, some programs replace the long-term lease with a projection of nightly revenue, typically from a third-party revenue report built on comparable listings nearby.
Underwriting looks at the annual revenue figure divided across 12 months, not your best month. Some programs also review the property's own booking history when it has one, and some adjust the projection for expenses or seasonality. Each program sets its own method, so ask how the figure will be used before you lock in a price.
This example is illustrative and not a quote. An investor buys a four-bedroom home in a St. George nightly-rental resort community for $615,000. A third-party report projects $60,000 in gross annual short-term rental revenue, or about $5,000 a month. Taxes are budgeted at $340 a month, insurance at $140 and HOA dues at $310.
At 75% LTV the loan is $461,250, estimated principal and interest is about $3,273, and the full payment is about $4,063, for a DSCR of about 1.23x. If the year comes in 15% below the projection, the ratio drops to about 1.05x.
At 65% LTV the loan is $399,750, the payment falls to about $3,626 and the DSCR rises to about 1.38x, which leaves more cushion for a slow season in St. George.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $461,250 | $399,750 |
| Estimated principal and interest | $3,273 | $2,836 |
| Property taxes | $340 | $340 |
| Insurance and HOA dues | $450 | $450 |
| Total monthly payment | $4,063 | $3,626 |
| Projected monthly revenue | $5,000 | $5,000 |
| DSCR | About 1.23x | About 1.38x |
| DSCR if revenue is 15% lower | About 1.05x | About 1.17x |
Utah gives primary residences a 45% exemption from the taxable value of the home. Second homes and short-term rentals do not get it, so your tax bill will be higher than an owner-occupant's. Short stays also carry state and local sales tax plus transient room taxes, which are higher in resort areas.
Mountain homes face heavy snow loads, ice dams and wildfire exposure in some areas, and southern Utah properties need cooling systems that can handle summer heat. Condo and resort-community dues can be substantial and are part of the payment.
Park City peaks from mid-December through March, with a second summer season for hiking, biking and events. Southern Utah is busiest in spring and fall when temperatures are mild for hiking in Zion and Arches, with winter popular among snowbirds in St. George and midsummer slower in the heat.
A long-term tenant usually pays the utilities and handles day-to-day upkeep. A nightly guest does not. Plan on cleaning fees, laundry, utilities, internet, consumables, platform charges, more frequent maintenance and management, which for remote owners can be a sizable share of revenue. Budget for furnishing the property, too.
The ratio a lender calculates covers the debt, not these costs. Treat 1.0x as a floor for the loan, not a target for your business, and build your own monthly budget alongside the projection.
Our investor loans are business-purpose loans on non-owner-occupied property. STR DSCR loans follow the same basics as our long-term rental loans, with the income coming from projected or actual nightly revenue.
A complete file gets a faster answer. Gather these items, then get a quote through the form below or by calling (877) 298-1001.
Salt Lake City generally restricts stays under 30 days in residential zones. Many investors there use 30-day-plus or long-term leases instead.
Primary residences get a 45% exemption from taxable value. Short-term rentals and second homes do not, so the bill is higher than an owner-occupant pays.
Many were built for nightly rentals, which settles the zoning question. HOA dues and resort fees still go into the payment and the ratio.
New nightly rentals are heavily limited in Moab and Grand County. Existing licensed properties in approved zones are the usual path, so confirm the license status.
Yes. Rate-and-term and cash-out refinances are available, with cash-out up to 75% LTV. Your booking history can support the income, and seasoning varies by program.
You can lower the loan amount, or a sub-1.0 DSCR program may fit. The financing team can run both options.
Some programs qualify it on a third-party revenue projection based on comparable listings. That is the usual path on a purchase.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.