Short-Term Rental Loans in Utah: Financing the Airbnb, Honestly
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
The lending question on a Utah short-term rental is simple: can the revenue be documented, and is the operation legal where it sits? Get those two right and the DSCR structure does the rest. Getting the second one wrong is how buyers lose six figures in this state.
How short-term rental income is counted
Three lanes, in order of underwriting strength:
- Operating property with 12 months of platform history: trailing Airbnb or VRBO statements support the ratio directly. The cleanest file, and the reason an established, licensed Utah STR is worth a premium at purchase.
- No history, long-term-rent fallback: the appraiser's Form 1007 market rent qualifies the loan as if it were a long-term rental. If the deal pencils on that rent, the STR upside is margin, not a lending assumption. This is the structure we recommend most often.
- No history, STR projection: some programs accept a market-data projection with a haircut, commonly 20–25% off (a few use 70–80% of projected revenue). More down and more reserves usually ride along.
Program specifics vary, and this is where a direct lender who writes these weekly earns the fee: we tell you which lane your property fits before you're under contract. Ratio mechanics: the DSCR guide.
Legality first, loan second
Utah's markets went in every direction, and the underwriting has to respect that. Salt Lake City has no residential STR use category at all, Moab city bans new STRs by zoning, Springdale has frozen new licenses since 2022, and St. George confines them to overlay zones. On any deal where the STR path is uncertain, we structure the loan to pencil on long-term rent so the purchase survives a zoning surprise. That conservatism costs nothing when things go well and saves the property when they don't. Verify the rules first: STR rules by city, with deep dives on Park City and St. George.
What taxes apply to my Utah short-term rental income?
Utah layers several lodging taxes, and the total varies by address. The stack includes Utah state sales tax at 4.85%, a state transient room tax near 0.32%, a county option sales tax of 0.25%, county transient room tax (many counties at the statutory 4.5% maximum, though Rich County is currently 3%), and municipal transient room tax up to 1% (up to 1.5% for qualifying cities). Combined lodging-tax stacks commonly run 9–12%+ depending on jurisdiction; Park City-area materials cite a total near 9.55%. These rates vary by location and can change quarterly, so always confirm the current combined rate for your specific address. None of it reduces qualifying revenue (underwriting uses gross rent before lodging taxes), but all of it belongs in your operating model. This is a tax matter; your CPA handles remittance.
The HOA gate on resort STRs
Even where a Utah city or county allows nightly rental, the property's HOA is a separate gatekeeper, and some resort HOAs impose a 30-day minimum regardless of zoning. This bites hardest in Park City and the ski-base condo buildings, where the municipal license and the CC&Rs are two independent approvals. We read both before quoting, and we read the HOA budget too when the property is a condo, because non-warrantable condo financing turns on those documents.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I finance an Airbnb with a DSCR loan in Utah?
Yes, where the STR is legally zoned and licensed. An operating property with 12 months of platform statements qualifies on its trailing revenue. A property without history qualifies on the appraiser's market rent, or on a projection with a haircut (commonly 20–25%) under some programs. Down payment and reserves scale with how aggressive the income documentation is.
How is short-term rental income counted on a Utah DSCR loan?
Three lanes: 12 months of Airbnb or VRBO history is the strongest; a no-history property uses the appraiser's Form 1007 market rent; and some programs accept a market-data projection with a haircut, commonly 20–25% off, or 70–80% of projected revenue. We pick the lane before you are under contract, and default to long-term rent where the STR path is uncertain.
What taxes apply to my Utah short-term rental income?
A layered stack: Utah state sales tax (4.85%), state transient room tax (~0.32%), a county option sales tax (0.25%), county transient room tax (up to 4.5% in many counties, 3% in Rich County), and municipal transient room tax (up to 1%, or 1.5% for qualifying cities). Combined lodging-tax stacks commonly run 9–12%+; confirm the current rate for your specific address with your CPA.
Do I need my Utah STR permit before I apply for the loan?
Not necessarily before applying, but the property's legal STR path must be real before closing: right zone, an available license, taxes budgeted. Where the regime is uncertain (Salt Lake City's absent use category, Moab's ban, Springdale's freeze), we structure the loan to qualify on long-term rent so the deal doesn't depend on a use that may not exist.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City and county STR rules, tax figures, and filing fees change; verify current requirements with the city or county, your CPA, or a Utah real estate attorney before you buy. Loans are subject to buyer and property qualification.