Short-Term Rental Investing in Park City, UT: Ski, Sundance, and Elite STR Market Guide
Avg ADR: $600–$2,500+/night (peak ski season) | Annual occupancy: 55–70% for quality properties | Total lodging tax ~12.1% | Utah 4.65% flat income tax | Conforms to federal bonus dep | Properties $1M–$5M+ | Permit system with annual caps
Park City, Utah occupies a singular position in the American STR market. At 7,000 feet elevation in the Wasatch Range, 45 minutes from Salt Lake City International Airport, it hosts two world-class ski resorts (Park City Mountain — the largest ski resort in the U.S. by acreage — and Deer Valley, the only remaining U.S. resort to ban snowboards), the Sundance Film Festival, and extraordinary summer mountain recreation. The result is a market where quality properties command $600–$2,500+/night in peak ski season and generate annual gross revenues that rival any STR market in the country.
Park City Market Overview: True Four-Season Demand
Park City's demand profile is genuinely multi-season, which differentiates it from many ski markets that struggle in summer. Winter (December–March) is peak ski season — extraordinary ADRs, 80–95% occupancy for quality ski-in/ski-out or ski-adjacent properties. January also hosts Sundance (10 days), which generates some of the highest nightly rates of the year for the entire town. Summer (June–August) brings mountain biking, hiking, the Park City Arts Festival, and Utah outdoor recreation. Fall (September–October) offers shoulder season with cooler temperatures and vibrant foliage.
Revenue Benchmarks by Property Type
| Property Type | Beds/Description | Annual Gross Revenue Range |
|---|---|---|
| Ski condo, village-area | 1–2 BR, ski-adjacent | $80,000–$150,000 |
| Townhome near ski resort | 3 BR, ski shuttle access | $120,000–$220,000 |
| Ski-in/ski-out condo | 3–4 BR, ski access | $180,000–$320,000 |
| Luxury mountain home, ski access | 4–5 BR, pool/hot tub | $250,000–$500,000 |
| Luxury estate, ski-in/ski-out | 5–6 BR, full amenities | $400,000–$800,000+ |
Cost Segregation in Park City: Large Deductions on High-Value Properties
Park City's high property values make cost segregation exceptionally impactful. Even at moderate personal property ratios of 20–26%, the absolute dollar values of deductions are extraordinary. Key reclassifiable components: outdoor hot tubs and spas (15-year), ski storage and boot dryers (15-year), heated driveways and walkways (15-year), mountain-view decks and outdoor entertainment areas (15-year), premium luxury furnished interiors (5-year), state-of-the-art appliance packages (5-year), and specialty entertainment systems (5-year).
Estimated deduction range: a $2M Park City ski home with 23% personal property ratio generates $460,000 in bonus-eligible deductions. At 37% federal + 4.65% Utah (Utah conforms to federal bonus dep), the combined first-year tax savings would be $170,200 + $21,390 = $191,590. Cost segregation on a single Park City property can produce tax savings larger than the purchase price of an entry-level property in other markets.
STR Loophole in Park City
Park City bookings are predominantly short: ski weekend trips (2–4 nights), Sundance week (7–10 days — this is one booking type that approaches the threshold), and summer mountain getaways (3–5 nights). The overall average stay is typically 3–5 nights for well-managed Park City properties, well within STR loophole parameters. Material participation through self-management or documented oversight is generally achievable given the active management required by luxury properties.
Park City STR Permit System: Critical Due Diligence
Park City has one of the most complex STR permit environments in the western U.S. The City of Park City and Summit County (unincorporated area) have different permit systems, caps, and eligibility criteria. Some zones have permit moratoriums or very limited permit availability. STR permits in Park City can be worth $50,000–$100,000+ at sale, embedded in the property price. Before any Park City acquisition, STR permit status and transferability must be verified as a critical component of due diligence.
Local Taxes and Licensing
Park City STR operators collect approximately 12.1% total transient taxes (Utah state sales tax 6.1% in Summit County + city and county lodging taxes). Operators must have a valid STR permit from the City of Park City or Summit County and register with the Utah State Tax Commission for sales tax collection. Both Airbnb and VRBO collect and remit Utah state sales tax on platform bookings; verify local lodging tax collection coverage.
Calculate Your Park City STR Tax Savings
Park City's extraordinary property values + Utah's full bonus dep conformity = some of the largest cost seg deductions available. Get your free estimate.
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