What to Look for in a Park City Vacation Rental Property

If you're evaluating a Park City vacation rental property, the market fundamentals are compelling, but the details matter enormously. Location, zoning, and regulatory compliance can mean the difference between a property that performs consistently and one that sits in legal limbo.

Aerial view of Old Town Park City, Utah in winter with ski slopes visible above Main Street | Photo by Olivia Hutcherson on Unsplash

How the Park City Market Actually Performs

Park City's short-term rental market includes roughly 3,600 vacation rentals across the greater area, with about 2,352 active Airbnb listings as of late 2025. The market-wide median occupancy rate is 55%, with an average daily rate of $447 and average annual revenue of $86,000 — but those figures mask significant variation by property type and neighborhood.

Seasonality here is steep. January and February drive the bulk of revenue: January alone delivers $9,271 in average monthly revenue at a $767 ADR. October, by contrast, averages just $2,631 at 10% occupancy. Summer is improving, with market occupancy climbing from 24.1% to 26.8% year-over-year in Q3 2025, but the market remains winter-dependent.

Even a strong winter isn't guaranteed. December 2024 saw occupancy fall to 30.4% (down 7.6% from the prior year), partly due to a 30-year low snowpack and a Ski Patrol Union strike. Understanding that kind of volatility before you buy is part of making a sound decision.

Neighborhood: Where You Buy Determines What You Can Do

Not every Park City address allows nightly rentals. The Land Management Code restricts STRs to designated zones, and many residential neighborhoods, including Park Meadows, Jeremy Ranch, and Silver Springs, generally prohibit short-term rentals. The four neighborhoods that consistently perform well and allow nightly rentals are Old Town, Deer Valley, Canyons Village, and Prospector Square.

Luxury ski-in ski-out condominium at Canyons Village in Park City, Utah surrounded by snow | Photo by Ty Tomlinson on Unsplash

Old Town

Walkability to Main Street and Park City Mountain Resort makes Old Town a perennial performer. Demand spikes during the Sundance Film Festival and holds steady through ski season. The neighborhood's limited replacement inventory keeps supply constrained, which supports occupancy rates over time.

Canyons Village

Canyons Village is one of Park City's best-performing STR zones. Many condominiums here explicitly allow nightly rentals, and ski-in/ski-out units command the highest nightly rates in the market. Resort amenities drive bookings in both winter and summer.

Deer Valley and the East Village Expansion

Deer Valley's East Village expansion adds over 3,700 acres of skiable terrain, making it one of North America's largest ski resorts. Properties near the expanded terrain are drawing significant buyer interest. Lower Deer Valley condos largely allow nightly rentals, while single-family properties in the broader area often do not, so verifying zoning before any offer is essential.

If you're also considering other mountain markets, our teams covering Vail property management and Telluride property management can speak to how neighborhood zoning shapes performance in those markets as well.

Check HOA Documents Before You Make an Offer

Even in zones that permit nightly rentals, an HOA or condominium's governing documents can prohibit them entirely. Some private club communities like Red Ledges and Promontory limit rentals through their CC&Rs. This is not a detail to confirm after closing. Request the full CC&Rs and any HOA rental policies before submitting an offer, and have a real estate attorney review them.

Licensing and Regulatory Requirements

Every Park City vacation rental property operating inside city limits requires a Nightly Rental License from the Park City Finance Department. Licenses are property-specific and non-transferable, so a seller's existing license does not carry over to you.

To obtain a license, you'll need to provide proof of ownership, a floor plan, a parking plan, and documentation of local and state tax registration. The property must pass a building inspection, and you must designate a local contact person available within 20 minutes of the unit, 24 hours a day.

Properties outside Park City limits fall under Summit County jurisdiction and require a separate county license. Check which authority governs your specific address before assuming the city process applies.

One regulatory change worth knowing: H.B. 256, which went into effect on May 7, 2025, allows local governments to use Airbnb and Vrbo listing data to identify unpermitted rentals. Enforcement is becoming more systematic, not less.

Understanding the Tax Obligations

Short-term rentals in Park City are subject to Utah state sales tax of 4.85% and a Transient Room Tax of up to 4.25% on stays under 30 days, in addition to any local obligations. These need to be built into your operating model from day one.

What the Real Estate Market Looks Like Now

For context on entry prices: the median home price within Park City limits reached $3.8 million in 2025, while condos carry a median closer to $1.1 million. The greater Park City area posted year-over-year appreciation of 8.7% through mid-2025, compared to the 1.3% national average. Long-term appreciation has averaged 7.2% annually since 2001.

These are meaningful data points for understanding the asset, but they don't substitute for analyzing the specific property's rental potential, licensing eligibility, and operating costs.

If you're working through the due diligence process and want to understand how professional management fits into the picture, our vacation rental management services page outlines how we work with owners in Park City and across our other markets, including Big Sky property management and Breckenridge property management.

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FAQ

Can I rent any Park City property as a short-term rental?

No. Short-term rentals are only permitted in specific zones under Park City's Land Management Code. Many residential neighborhoods prohibit them entirely. Even in permitted zones, HOA and condominium governing documents may independently restrict nightly rentals. Verify both zoning and HOA rules before purchasing.

Do I need a new license when I buy an existing vacation rental?

Yes. Park City Nightly Rental Licenses are property-specific and non-transferable. A license held by the previous owner does not pass to you at closing. You'll need to apply for a new license through the Park City Finance Department and meet all current requirements, including a building inspection and a 24-hour local contact designation.

How seasonal is the Park City short-term rental market?

Very. January and February are by far the strongest months, with ADRs well above the annual average. October is the softest month in the calendar. Summer occupancy is growing, but the market remains significantly winter-dependent, which makes snowpack and resort conditions a meaningful variable in annual performance.

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If you're actively evaluating a Park City vacation rental property and want a ground-level perspective on how specific neighborhoods and property types perform under management, we're happy to have that conversation. Contact our team and we can walk through what we're seeing in the market right now.