Market data, regulations, revenue potential, and what actually works for short-term rental investors in Cedar City, Hurricane, and the Zion corridor.
Illustrative Southern Utah STR investment scenes.
Southern Utah sits at the intersection of three powerful demand drivers: national park tourism (Zion, Bryce Canyon, Cedar Breaks, Grand Canyon North Rim), year-round outdoor recreation (Sand Hollow, Brian Head, Kolob Canyons), and cultural events (Utah Shakespeare Festival, SUU athletics, motorsport events). Unlike coastal or metro vacation rental markets, Southern Utah still offers entry points below $500K with realistic paths to cash flow.
Two markets stand out for investors: Cedar City and Hurricane. They serve different guest profiles, operate under different regulations, and produce different return profiles. Understanding the distinction is the first step to making a smart investment.
| Metric | Cedar City | Hurricane |
|---|---|---|
| Avg Nightly Rate (ADR) | $143–$184 | $261–$343 |
| Avg Occupancy | 30–52% | 44–61% |
| Avg Annual Revenue | $22K–$25K | $46K–$50K |
| Active Listings | ~554 | ~727 |
| Typical Entry Price | $250K–$400K | $350K–$550K |
| Primary Guest Type | Festival, SUU, road trippers, families | National park visitors, outdoor recreation, groups |
| Peak Season | Jun–Oct (Shakespeare + parks) | Mar–Nov (park season + recreation) |
| Proximity to Zion | ~60 min | ~20 min |
| Proximity to Brian Head | ~35 min | ~90 min |
Cedar City's STR market is anchored by the Utah Shakespeare Festival (June–October), Southern Utah University, and its position as the gateway to Cedar Breaks, Brian Head, and Kolob Canyons. It's also a natural overnight stop on the I-15 corridor between Las Vegas and Salt Lake City.
2–3 bedroom homes and condos. Clean, modern interiors with strong WiFi. Proximity to Main Street, SUU campus, or I-15 access. Properties that appeal to couples, small families, and business travelers. Shakespeare Festival season (Jun–Oct) is the revenue engine.
Typical 2–3 BR home: $22K–$30K/year gross. ADR ranges from $143–$184 depending on property quality and season. Occupancy spikes during Shakespeare and graduation seasons. Winter is softer but offset by Brian Head ski traffic and holiday bookings.
License required: Residential Short-Term Rental License ($40) + general business license.
Occupancy: Max 2 guests per bedroom + 4 per home.
Local rep: Must designate a local representative who can respond to complaints within 24 hours.
Insurance: Liability insurance required.
Parking: Must provide diagram of on-site parking.
Taxes: State and local transient room taxes must be collected and remitted.
Safety: Functional smoke and carbon monoxide detectors required.
Hurricane is the budget-friendly gateway to Zion National Park, Sand Hollow State Park, and the broader Washington County recreation corridor. Properties here command higher nightly rates because guests are booking for proximity to the parks and outdoor experiences — and they tend to book larger homes for multi-family groups.
3–5+ bedroom homes with pools, hot tubs, game rooms, and outdoor entertaining space. Properties near Sand Hollow that can accommodate groups of 8–16. UTV-friendly setups (garage/trailer parking) are a differentiator. "Destination homes" that guests choose for the property itself, not just the location.
Typical 3–5 BR home: $46K–$50K/year gross. ADR ranges from $261–$343 depending on size and amenities. October is the strongest month; January is the softest. Supply grew 85% in the past year, but revenue still trended upward — demand is outpacing new inventory.
License required: Business license through Hurricane City.
Zoning: Single-family zones allow STRs; multifamily zones prohibit whole-home vacation rentals. Not all zones permit STRs — verify before purchasing.
Conditional use permit: May be required in certain zones, involving application and potentially a public hearing.
License cap: Capped at 3 per 1,000 residents in single-family zones. One STR license per owner. 300-foot spacing requirement between STRs.
Response time: Owners must respond to complaints within 1 hour.
Pool/spa: Use restricted after 11 PM.
Taxes: State and local transient room taxes must be collected and remitted.
Here are two realistic investment scenarios based on current market data. These are illustrations, not guarantees — actual performance depends on property quality, management, pricing strategy, and market conditions.
Purchase: $320,000
Down payment (25%): $80,000
Mortgage (7%, 30yr): ~$1,597/mo
Gross revenue: ~$26,000/yr ($2,167/mo)
Expenses (mgmt, insurance, taxes, maint): ~$10,400/yr
Net before mortgage: ~$15,600/yr ($1,300/mo)
Cash flow after mortgage: ~($3,564)/yr
Reality check: Slightly negative cash flow at today's rates. Breaks even with either higher occupancy or rate appreciation. Equity build and appreciation are the real play here.
Purchase: $480,000
Down payment (25%): $120,000
Mortgage (7%, 30yr): ~$2,395/mo
Gross revenue: ~$48,000/yr ($4,000/mo)
Expenses (mgmt, insurance, taxes, maint, pool): ~$19,200/yr
Net before mortgage: ~$28,800/yr ($2,400/mo)
Cash flow after mortgage: ~$0–$120/yr
Reality check: Near breakeven cash flow with strong equity build. The higher ADR and occupancy offset the bigger mortgage. Upside comes from optimizing ADR and keeping occupancy above 50%.
Use my Airbnb host referral link to create your first listing.
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Dynamic pricing tools (PriceLabs, Wheelhouse, Beyond) are non-negotiable. Static pricing leaves 15–30% of revenue on the table. Price by demand, not by gut. Adjust for local events, holidays, and seasonal patterns.
Reviews drive bookings. The difference between a 4.7 and a 4.9 rating is real revenue. Invest in quality linens, fast WiFi, clear communication, and a spotless clean. Anticipate guest questions before they ask.
Channel managers (Hospitable, Guesty, OwnerRez) sync calendars across Airbnb, VRBO, and direct bookings. Automated messaging handles 80% of guest communication. Smart locks eliminate key handoffs. Systems scale; manual effort doesn't.
Property management companies typically charge 20–30% of gross revenue. On a $48K/year property, that's $9,600–$14,400. Self-managing saves that fee but requires local presence, availability, and systems. If you're local, self-manage with automation. If you're remote, budget for professional management and vet your PM company carefully.
Your cleaning team is your most important vendor. A missed clean or a complaint about cleanliness will cost you more than the cleaning fee in lost reviews. Build relationships with 2–3 reliable cleaners. Pay well. Inspect regularly. This is not where you cut costs.
Hurricane's license caps and spacing rules mean some properties simply cannot operate as STRs. Always verify zoning and license availability before making an offer. A great deal on a house that can't be rented short-term is not a great deal.
AirDNA and other tools show averages, not guarantees. Your first year will likely underperform the market average while you build reviews and optimize pricing. Underwrite conservatively: assume 70–80% of market average revenue in year one.
A 3BR home needs $15K–$25K in furniture, linens, kitchenware, and decor. A 5BR with pool/game room can run $30K–$45K. This is real capital that's often overlooked in the investment analysis.
Southern Utah is not a flat-demand market. Hurricane peaks Oct and drops in Jan. Cedar City peaks Jun–Oct and softens Nov–Mar. Your pricing, minimum stays, and cash reserves need to account for 2–4 months of lower occupancy.
I own and operate short-term rentals in Cedar City and Hurricane. I know the regulations, the revenue realities, and which properties actually perform — because I run them myself. Whether you're buying your first STR or adding to a portfolio, I can help you find the right property and avoid the expensive mistakes.
Let's Talk Investment PropertiesGerardo Lopez | RE/MAX Properties | STR Investor & Associate Broker
Cedar City & Southern Utah
Last updated: June 2026. Market data sourced from AirDNA, AirROI, and Rabbu. Regulations and tax rates may change — verify with local authorities before investing. Explore more Cedar City guides →