Moab, UT Airbnb & Short-Term Rental Regulations 2026
Everything you need to know about operating a legal short-term rental in Moab, Utah. Licensing, taxes, zoning, and 2026 compliance requirements.
Moab STR Regulation Overview
Moab sits at the gateway to Arches and Canyonlands, making it one of the most coveted yet tightly controlled short-term rental markets in Utah. Facing intense tourism pressure and a housing shortage, the city adopted Municipal Code 17.09.700 (amended by Ordinance 2024-03 in June 2024), which prohibits residential short-term rentals across nearly every residential and commercial zone. Legal nightly rentals are now confined to designated resort zones and properties with grandfathered rights or overnight-accommodations overlay status, and the city has blocked new construction intended for vacation rental use while it studies which zones might reopen. For investors, this means buying a standard Moab house and converting it to an Airbnb is generally not permitted. The upside is scarcity: existing licensed units enjoy world-class demand and strong nightly rates with limited new supply legally allowed. Operating requires a city nightly rental license, off-street parking, insurance, and collection of the area's roughly 14.8%-plus combined lodging tax.
Moab STR Quick Facts
| STR Legal? | Yes |
| License Required | Yes |
| License Cost | ~$116/year (3 units or fewer) to ~$145/year (more than 3 units) per the city Master Fee Schedule, plus an application fee (verify current schedule with the city) |
| Lodging Tax | ~14.8%+ combined |
| Occupancy / Density Caps | No fixed citywide unit cap, but new residential STRs are effectively banned; legal operation is confined to designated resort/overlay zones and grandfathered properties, with off-street parking required per unit. |
| Primary Residence Required | No |
New Residential STRs Prohibited
Moab Municipal Code 17.09.700 (amended by Ordinance 2024-03, June 2024) prohibits residential short-term rentals in nearly all zones, including A-2, C-1, C-3, C-5, R-2, R-3, R-4, and RA-1. A standard residential home generally cannot be converted into a legal nightly rental.
Resort Zones and Grandfathered Rights Only
Legal nightly rentals are limited to designated resort zones and properties holding existing grandfathered rights or overnight-accommodations overlay status. The city has also blocked new construction of hotels, condos, and houses intended for short-term rental while it studies future zoning.
Nightly Rental License Required
Operating without a valid City of Moab nightly rental business license is a misdemeanor. The city Master Fee Schedule lists an annual nightly-rental license fee of about $116 (three units or fewer) to $145 (more than three units). Each property needs its own license, plus a Utah State Tax ID, liability insurance, fire-safety compliance, and a local emergency contact.
Combined Lodging Tax Around 14.8%+
Guests pay roughly 14.82% in combined taxes per the published City/Grand County schedule, including 4.85% state sales tax, local and resort-community sales taxes, the 0.32% state transient room tax, the Grand County TRT, and Moab's 1.0% municipal transient room tax. The county TRT rose from 4.25% to 4.5% effective October 1, 2025, so the current effective rate is slightly above the historically published 14.82%.
Off-Street Parking Mandated
Licensed nightly rentals must provide off-street parking for guests. Site plans, proof of insurance, and a designated local contact are part of the application, which typically takes several weeks to process.
Moab STR Market Performance
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Frequently Asked Questions
Yes, but only in limited locations. Moab Municipal Code 17.09.700 prohibits residential short-term rentals in nearly all zones. Legal nightly rentals exist only in designated resort zones and properties with grandfathered rights or overlay-accommodation status. Buying a typical residential home to convert into an Airbnb is generally not permitted under current city rules.
Yes. Operating without a valid City of Moab nightly rental business license is a misdemeanor. Each property requires its own license, plus a Utah State Tax ID, liability insurance, fire-safety compliance, off-street parking, and a local emergency contact. The city Master Fee Schedule lists an annual fee of roughly $116 (three units or fewer) to $145 (more than three units); confirm the current schedule with the city treasurer.
The combined lodging tax on a Moab room charge is approximately 14.8% or slightly higher. That includes 4.85% state sales tax, local and resort-community sales taxes, the 0.32% state transient room tax, Grand County's transient room tax (raised from 4.25% to 4.5% effective October 2025), and Moab's 1.0% municipal transient room tax. Hosts must register, collect, and remit these taxes; verify the exact current rate with the city or the Utah State Tax Commission.
Generally no. Moab prohibits residential short-term rentals in nearly all residential and commercial zones, and the city has blocked new construction intended for vacation rental use. Only properties already located in designated resort zones or carrying grandfathered or overlay rights can legally operate as nightly rentals, so verify zoning and existing entitlements before purchasing.
Moab's code does not impose a primary-residence or owner-occupancy requirement on nightly rentals. The key restriction is zoning: rentals are banned in residential zones and allowed only in designated resort zones or grandfathered properties. Because legal inventory is scarce rather than tied to owner residency, due diligence on a property's zoning and entitlements is essential.
Informational only — verify current rules with local authorities before investing. Sources: moab.municipal.codes · www.moabcity.gov · grandcountyutah.net · www.moabcity.gov · www.avalara.com
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