Park City permits short-term rentals (STRs) — defined as rentals under 30 days — but only in specifically zoned resort, commercial, and certain mixed-use areas. Most single-family residential neighborhoods in Park City do NOT allow STRs. For investors, this means STR potential is determined by exact property location, not by the city as a whole. Verifying STR eligibility before offering is mandatory — getting it wrong can mean buying a property that can’t legally produce the income you projected.

How Park City zones STRs

Park City’s zoning code separates the city into multiple districts, each with different STR rules:

Zones that permit STRs (with business license)

Old Town (HR-1 zoning) — generally permitted
Lower Deer Valley resort areas — permitted with conditions
Mountain Resort District — designed for resort use, STR-friendly
Some Park Meadows resort-adjacent areas — case-by-case
Commercial zones with residential components

Zones that restrict or prohibit STRs

Single-family residential zones (SF/SF-1) — generally prohibited
Most established neighborhood zones — prohibited
Some condo associations have restrictions even in STR-allowed zones

The critical step: get the specific zoning for the specific property address from Park City Planning. Listing language and seller assurances don’t override zoning.

STR licensing requirements in Park City

Properties operating legal STRs must obtain a Park City business license. Requirements include:

Business license application and fee (~$100-$200)
Transient room tax registration
Sales tax registration
Designation of local responsible party (within 30 minutes)
Compliance with safety requirements (smoke detectors, egress, etc.)
Adherence to occupancy limits
Parking compliance
Noise ordinance compliance

License renewal is annual. Some zones require annual permit renewal as well.

Summit County (unincorporated) rules

Areas outside Park City city limits but in Summit County follow county rules, which differ:

Summit County STR regulations

Permit required in most areas
Application includes inspection requirements
Density limits in some neighborhoods
Some areas prohibit STRs entirely
Annual renewal

Summit County is generally more restrictive than Park City proper, with some neighborhoods imposing complete STR prohibitions through subdivision CC&Rs or HOA rules.

HOA restrictions layer on top

Many Park City condos and master-planned communities have HOA-level STR restrictions that are stricter than city zoning. Common patterns:

Common HOA STR rules

Minimum rental periods (often 30 days, sometimes 6 months)
Maximum rentals per year
Caps on percentage of units rented short-term
Requirements for owner occupancy
Outright STR prohibition

A property in an STR-zoned area can still be restricted by HOA rules. Read CC&Rs carefully before assuming STR potential.

Best Park City STR investment areas

Patterns in Park City STR-friendly investment:

Old Town

Highest STR density and acceptance
Mix of historic homes and modern construction
Walking distance to Main Street, mountain access via shuttle
Property prices $1.2M-$5M+ for STR-suitable inventory
Strong rental yields when ski resorts are open

Lower Deer Valley

Resort-adjacent, ski-in/ski-out potential
Higher property prices ($2M-$10M+)
Premium STR rates during ski season
Strong year-round demand

Park Meadows resort condos

Lower price entry ($600K-$1.5M)
Strong HOA management
Verify HOA STR rules carefully

Areas to avoid for STR investment

Single-family residential zones near central Park City
Older established neighborhoods (Solamere, Lower Old Town single-family)
HOA communities with explicit STR restrictions

STR investment math

Realistic Park City STR numbers for a 3BR Old Town home purchased at $2.5M:

Item	Annual amount
Gross rental income (peak + shoulder + summer)	$180,000-$240,000
Property management (typically 25-35% for STR)	-$54,000-$84,000
Cleaning fees pass-through	$0 (pass to renter)
Utilities, internet, supplies	-$15,000-$25,000
Insurance (STR rider required)	-$5,000-$8,000
Property tax (non-primary rate)	-$22,500 (0.9%)
HOA dues if applicable	-$5,000-$25,000
Mortgage P&I (25% down, $1.875M at 7%)	-$150,000
Net operating cash flow	-$71,500 to +$10,500

That’s the honest math at current prices and rates. Park City STRs at 25% down often don’t cash-flow — investors rely on appreciation and tax benefits, not monthly cash.

When STRs cash flow well in Park City

Higher down payments (40-60%+)
Lower purchase prices (relative bargains)
Self-management (instead of property management)
Premium locations commanding top STR rates
Cash purchases eliminating mortgage cost

Tax considerations for STR owners

STR income has specific tax treatment:

Schedule E (passive)

If you don’t materially participate in the rental, income/loss is passive. Losses limited by passive activity rules.

Schedule C (active business)

If you provide substantial services (cleaning, breakfast, concierge), income may be active. Subject to self-employment tax but unlimited loss deduction.

Short stay vs long stay

Properties used over 7 days average per rental are taxed differently from those under 7 days. Park City STRs typically average 3-7 day stays — important tax distinction.

Transient room tax

Park City and Summit County collect transient room tax on STR revenue. Currently 12.66% combined (Utah state + Summit County + Park City) on rental amounts.

Sales tax

STRs collect sales tax on rentals. Hosts can use Airbnb/Vrbo for automatic collection or remit directly.

What 2026 looks like for Park City STR

Three trends affecting STR investment:

Tightening regulation

Park City and Summit County have steadily tightened STR rules in response to housing affordability concerns. Expect continued regulatory pressure but not outright prohibition.

Occupancy normalization

Post-pandemic STR demand has normalized. Park City still sees strong winter and summer demand but less extreme than 2021-2022 peaks.

Operating cost pressure

Property management fees, cleaning costs, utilities, and insurance have all risen. Net STR margins have compressed.

Quality bar rising

Guests increasingly expect hotel-quality finishes, modern technology, and full service. Older, less-updated STRs see weaker bookings.

Common STR investor mistakes

Four patterns we see repeatedly:

Buying in unverified STR zones

“The listing said STR allowed” doesn’t mean it actually is. Verify with city/county planning directly.

Underestimating operating costs

First-time STR investors often forget about utilities, supplies, cleaning oversight, repairs, and replacement reserves.

Optimistic occupancy projections

Park City STRs see strong peak weeks but slow shoulder season. Annual occupancy rates of 50-65% are typical, not the 80%+ some investors assume.

Ignoring HOA rules

Buying in an STR-zoned area but missing HOA restrictions in the CC&Rs. Always read HOA documents.

What to do next

If you’re considering a Park City STR investment, the right approach is:

Target specific addresses rather than “Park City” broadly
Verify zoning with Park City Planning for each address
Read HOA CC&Rs carefully before offering
Project realistic operating numbers — not optimistic ones
Plan for 25-35% down payment minimum for reasonable cash flow

Reach out to Andrew for STR-specific guidance on Park City inventory. We work with STR-focused investors and know which properties have legitimately verified STR eligibility versus which are listing claims without backing.

See our investor real estate page for related investment considerations.

Search Park City and Summit County homes for sale when you’re ready to start identifying specific properties.

Park City STRs can work — but only in the right zones, with the right financial structure, and with realistic expectations. The strong appreciation and lifestyle value of Park City real estate often makes ownership worthwhile even when STR cash flow is modest.

Short-Term Rental Rules in Park City: What Investors Must Know in 2026