Sand Hollow STR Investment Numbers: What the Data Actually Shows in 2026

Sand Hollow is one of the most searched vacation rental markets in southern Utah — and for good reason. The state park drew over 1.5 million visitors in 2024, making it the busiest state park in Utah and outpacing three national parks (Arches, Capitol Reef, and Canyonlands) in total visitation.

But strong tourism numbers don't automatically mean strong STR returns. If you're evaluating a short-term rental investment near Sand Hollow, you need to look past the marketing and understand what the numbers actually say — occupancy rates, average daily rates, seasonal swings, property costs, and the regulatory landscape that controls how many licenses are even available.

This guide breaks down the real data for the Hurricane/Sand Hollow STR market as of mid-2026, pulled from public analytics platforms, county records, and local market knowledge.

Jump to Section

• Market Overview
• Occupancy and Revenue Numbers
• Seasonal Patterns
• Property Acquisition Costs
• Running the Investment Math
• Regulatory Landscape
• What Drives Demand
• Risks and Considerations
• The Bottom Line

Market Overview: Hurricane and Sand Hollow by the Numbers

Hurricane, Utah is the gateway city to Sand Hollow State Park and sits roughly 20 minutes from Zion National Park's south entrance. The STR market here has grown significantly — the city currently has approximately 727 active short-term rental listings across platforms like Airbnb and VRBO.

That's a meaningful supply base for a city of roughly 22,000 residents. Supply has grown aggressively — up an estimated 85% over the past year according to market analytics — which is the single most important trend any investor should understand before buying in.

More supply means more competition for the same guest pool. That said, demand drivers remain strong, and properties that are well-located, well-managed, and well-priced continue to perform.

Occupancy and Revenue: What STRs Actually Earn

Here are the core metrics for Hurricane-area short-term rentals based on 2025–2026 market data:

Metric	Value	Source Period
Average Daily Rate (ADR)	$229–$343/night	2025–2026 (varies by bedroom count)
Average Annual Revenue	$46,500–$49,000	Apr 2025–Mar 2026
Average Occupancy Rate	43.9%–50%	Trailing 12 months
Peak Month Occupancy	Up to 61.4%	Peak season months
Peak Month Revenue	~$5,978/month	Peak season
Peak ADR	$371/night	Peak season
Active Listings	~727	2026

What this means in practice: The "average" STR in Hurricane grosses roughly $47K per year. That's the market-wide average — which includes poorly optimized listings, seasonal-only rentals, and properties in less desirable locations. Well-managed properties near Sand Hollow with strong amenities (pool, hot tub, UTV parking, fenced yard) consistently outperform the average by 30–50%.

The ADR range of $229–$343 reflects the difference between smaller units (1–2 bedrooms) and larger homes (3–5 bedrooms). Larger homes with resort-style amenities command the higher end.

Seasonal Patterns: When the Money Comes In

The Sand Hollow market has a distinct seasonal curve that every investor needs to model before buying:

Season	Months	Performance
Peak Season	April–October	Occupancy 50–61%, ADR $300–$371, strongest revenue months
Strongest Month	October	Highest demand — Zion fall crowds, perfect weather, UTV season
Shoulder Season	March, November	Moderate demand, ADR drops 15–20%, weekends still book
Off Season	December–February	Lowest occupancy, January is the softest month

Key takeaway: About 65–70% of your annual revenue comes from April through October. If your carrying costs require strong winter months, this market will stress-test your cash reserves. Smart operators use winter for maintenance, updates, and lower-rate strategies that target snowbirds, remote workers, and construction crews.

Property Acquisition Costs: What You're Buying Into

Sand Hollow Resort is the most recognized STR-friendly community in the area. Here's what current inventory looks like as of mid-2026:

Property Type	Price Range	Avg. Days on Market
Condos	$355,000–$565,000	69 days
Townhomes	$900,000–$1,242,000	63 days
Single-Family Homes	$295,000–$3,750,000	67 days

The median home price in Sand Hollow Resort is approximately $799,000 as of June 2026, with the average sale price at $853,000. That's down roughly 9% from the same period in 2025, which signals softening — and potentially better entry points for investors who've been waiting on the sideline.

Outside of Sand Hollow Resort, the broader Hurricane market offers homes in the $400K–$700K range that can still be permitted for STR use, depending on zoning. These tend to deliver better cap rates because acquisition costs are lower while nightly rates remain competitive.

Running the Investment Math

Here's a simplified projection for two common acquisition scenarios. These are estimates — your actual numbers will depend on management style, pricing strategy, furnishing quality, and operational costs.

Scenario 1: Sand Hollow Resort Condo ($450K)

Purchase Price	$450,000
Down Payment (25%)	$112,500
Estimated Gross Revenue	$40,000–$50,000/year
Operating Expenses (40–50%)	$16,000–$25,000
Mortgage + HOA + Insurance	~$28,000–$32,000/year
Estimated Net Cash Flow	-$5,000 to +$5,000

At market-average performance, a condo is roughly break-even. Upside comes from above-average management and pricing, plus long-term appreciation.

Scenario 2: Hurricane Single-Family Home ($550K)

Purchase Price	$550,000
Down Payment (25%)	$137,500
Estimated Gross Revenue	$55,000–$70,000/year
Operating Expenses (40–50%)	$22,000–$35,000
Mortgage + Insurance + Taxes	~$34,000–$38,000/year
Estimated Net Cash Flow	$0 to +$10,000

Single-family homes with strong amenities (pool, hot tub, UTV garage, fenced yard) outperform condos on gross revenue and often deliver modestly positive cash flow. The higher purchase price is offset by higher nightly rates and better occupancy.

Important note on operating expenses: The 40–50% expense ratio includes cleaning fees, platform commissions (3–15%), property management (if outsourced, typically 20–25% of gross), utilities, supplies, maintenance, furnishing replacement, and taxes. Self-managing reduces this significantly but requires time and local presence.

Regulatory Landscape: Licenses, Caps, and Zoning

This is where many out-of-state investors get surprised. Southern Utah is not a "buy anywhere and list it" market. Regulations vary by jurisdiction and are tightening.

Hurricane City

• License cap: 3 STR licenses per 1,000 residents — once full, there's a waiting list
• Spacing requirement: 300 feet between STR properties in single-family zones
• One license per owner in single-family zones
• Business license required before operating
• Certificate of occupancy must be current, property must meet fire/building codes for transient occupancy
• Response time: Owners must respond to complaints within one hour
• Pool/spa restrictions: No use after 11 p.m.
• Recent trend: Hurricane has moved toward disallowing new whole-home STR licenses in single-family zones, though existing licenses are grandfathered

Washington County (Unincorporated Areas)

• License required for all STRs in unincorporated county areas
• Application fee: $160 (includes health and safety inspection)
• Annual renewal required
• Building code compliance verified by county inspector

What This Means for Investors

If you're buying specifically for STR use, you must verify the property's zoning and license availability before closing. A property that looks perfect on paper can be worthless as an STR if the zone doesn't allow it or the cap is full. This is where working with a local agent who understands both the real estate and the STR regulatory side is critical — not every agent in the area has this expertise.

For a deeper look at the permitting process, read our guide to Hurricane STR permits.

What Drives Demand in the Sand Hollow Market

Understanding where your guests come from — and why — is as important as understanding the financial model.

1. Sand Hollow State Park (1.53 Million Visitors in 2024)

Utah's busiest state park draws OHV riders, boaters, swimmers, and campers year-round. The reservoir is a primary draw for Las Vegas day-trippers and weekend visitors who need a place to sleep nearby. Properties with UTV parking and easy reservoir access command a premium.

2. Zion National Park (~20 Minutes Away)

Zion is the single biggest demand driver in Washington County. Hurricane serves as a lower-cost alternative to Springdale for families and groups who want more space and amenities than a hotel offers. The proximity to both Zion and Sand Hollow makes Hurricane uniquely positioned among STR markets.

3. Quail Creek State Park

Often overlooked, Quail Creek adds another water recreation option 10 minutes from most Hurricane STRs. Its warmer water (compared to Sand Hollow) makes it especially popular in spring and early summer.

4. OHV and UTV Tourism

Sand Hollow's sand dunes and trail system attract a dedicated rider community. These guests tend to book larger homes, stay 3–5 nights, and travel in groups — which makes them high-revenue guests. Properties with enclosed UTV garages or large driveways command higher nightly rates and get more repeat bookings.

5. Las Vegas Overflow and Snowbird Traffic

Hurricane is roughly 2.5 hours from Las Vegas. Weekend escape traffic from Vegas is a consistent demand driver, especially in spring and fall when desert temperatures are ideal. Winter months see a smaller but steady snowbird demographic — retirees escaping colder climates for a few weeks at a time.

6. Golf Tourism

Sand Hollow Resort's 27-hole championship golf course and the broader southern Utah golf corridor (including Copper Rock, Coral Canyon, The Ledges, and Entrada) bring a golf-travel demographic that tends to book mid-week and spend more on dining and activities. For more on golf communities, read our guide to golf course communities in southern Utah.

Risks and Considerations

No investment guide is complete without an honest look at what could go wrong:

Supply Growth

This is the biggest risk factor right now. With supply up ~85% year-over-year, the market is absorbing a lot of new inventory. If supply growth continues to outpace demand growth, occupancy rates and ADR will compress. Watch this metric quarterly.

Regulatory Tightening

Hurricane has already moved to restrict new whole-home STR licenses in single-family zones. If the city further reduces the cap or adds more restrictive zoning, existing license holders benefit (supply is protected) but new investors face higher barriers to entry. Always verify the current regulatory status before making an offer.

Seasonality Risk

Your property will sit partially vacant from December through February. If your financial model requires 50%+ occupancy year-round to break even, you're underwriting too aggressively. Model with a 40–45% annual average and build a winter strategy around lower rates, monthly stays, and off-season maintenance windows.

Interest Rate Sensitivity

Investment property loans currently carry rates in the high 6% to mid-7% range. At these rates, the math is tight on properties above $600K unless you're putting 30%+ down. A 1% rate change on a $500K mortgage shifts your annual debt service by roughly $3,000–$4,000 — which is material when net cash flow margins are thin.

Management Intensity

STRs are not passive investments. Even with a property manager, you're dealing with guest issues, maintenance, cleaning coordination, pricing optimization, platform management, and regulatory compliance. If you're out-of-state, budget 20–25% of gross revenue for professional management and expect to stay involved in major decisions.

The Bottom Line

Sand Hollow remains one of the most compelling STR markets in Utah — but it's no longer the easy win it was in 2021. The demand fundamentals are strong: 1.5M+ state park visitors, proximity to Zion, a growing OHV tourism economy, and steady Las Vegas overflow. Those aren't going away.

The challenge is on the supply side. More competition means tighter margins, and the investors who win in this market are the ones who run it like a business — professional photography, dynamic pricing, guest experience that drives 5-star reviews, and properties with genuine differentiators (pool, hot tub, UTV storage, views).

If you're evaluating a Sand Hollow or Hurricane STR investment, the numbers to focus on are:

• Can you cash-flow at 40% occupancy? If yes, you have margin for seasonal dips and market shifts.
• Is the property in an STR-eligible zone with an available license? Verify before you're under contract.
• What's your competitive advantage? In a market with 700+ listings, "nice house near Zion" isn't enough. You need a reason guests choose you.

Data sources: AirROI, Airbtics, AirDNA MarketMinder, Washington County Records, Hurricane City Code, Utah Division of State Parks. Market data reflects trailing 12-month periods through early 2026. Individual property performance varies based on location, amenities, management, and pricing strategy.