Cedar City, Utah Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Cedar City?

Yes, short-term rentals are explicitly allowed in Cedar City, Utah. Short-term rentals are permitted in all residential zones for existing residential uses, making Cedar City an investor-friendly market for STR operators. The city has established a comprehensive regulatory framework that balances opportunities for property owners with protections for neighborhood character and guest safety.

What do Airbnb hosts actually earn in Cedar City?

Cedar City hosts earn a median $25,977/year with $141 ADR and 59% occupancy.

Top performers pull in $36,909+ per year.

See the full Cedar City market breakdown

How to Start a Short-Term Rental Business in Cedar City

Starting a short-term rental business in Cedar City requires following a structured process designed to ensure compliance with municipal regulations while protecting both operators and the community.

Step 1: Zoning Verification and Property Assessment

Before proceeding with any licensing, verify that your property is located in a residential zone where short-term rentals are permitted. Cedar City allows STRs across all residential zones, but properties must maintain their residential character. Assess whether your property can accommodate the required parking, safety equipment, and guest capacity without disrupting neighborhood harmony.

Step 2: Insurance Acquisition

Secure adequate liability insurance coverage before applying for your license. Cedar City requires proof of liability insurance, but operators should note that basic homeowner's insurance typically contains business exclusion clauses that limit coverage for rental activities. Consider comprehensive commercial general liability policies that specifically cover short-term rental operations to ensure adequate protection against guest-related claims.

Step 3: Safety Equipment Installation

Install required safety equipment throughout the property. Each bedroom and corridor leading to a bedroom must contain smoke detectors, and each floor must have a working carbon monoxide detector. Ensure all safety devices are properly installed and functional before applying for licensing.

Step 4: Parking Compliance

Provide adequate off-street parking as required by Cedar City Ordinance 26-V-5. Submit a diagram of available 9' x 18' parking stalls with your application. Parking spaces must be designated specifically for rental guests and cannot interfere with neighborhood parking patterns.

Step 5: Neighbor Notification

Notify all residences within 300 feet of your property about your short-term rental plans. This notification requirement serves as a community engagement measure and helps address potential concerns before they become complaints.

Step 6: License Application Submission

Complete and submit the Cedar City Short-Term Rental Business License Application along with all required documentation, fees, and certifications.

Required Documents, Permits, Licenses, and Guidelines

Business License Requirements

Cedar City Residential Short-Term Rental License (fee: $40, in addition to other business license fees)
Utah State Business License
Lodging Sales Tax Number
Federal ID Number (for business tax purposes)

Documentation Requirements

Owner Information: Complete owner details including name, address, phone numbers, email, date of birth, and ownership type (individual, corporation, LLC, partnership, etc.)
Local Property Representative Information (if owner is not local):
- Name and contact information
- 24/7 availability confirmation
- Physical address within reasonable proximity to the rental property
Property Details:
- Complete rental address(es)
- Residential dwelling type classification
- Liability insurance verification
- Parking diagram submission
- Property owner notes or explanations
Compliance Certifications:
- Confirmation that use and occupancy conforms to all applicable building codes and safety standards
- 24/7 response capability to complaints
- Adequate off-street parking compliance
- Adherence to noise, nuisance, and disturbing the peace regulations
- Responsibility for all guest activities
- Commitment to preventing unreasonable noise or disturbances
- Prohibition on accessory building, mobile structure, or yard space usage
- HOA/CC&R compliance verification
- Guest capacity limitations (maximum 2 guests per bedroom plus 4 per home)
- Smoke detector installation confirmation
- Carbon monoxide detector installation confirmation

Safety and Building Code Compliance

Properties must meet all applicable local, state, and federal building codes and safety standards. This includes proper electrical systems, structural integrity, and compliance with fire safety regulations.

Specific Regulations for Short-Term Rentals

City-Level Regulations (Cedar City)

Zoning and Use Restrictions:

Short-term rentals are permitted in all residential zones for existing residential uses
Properties must maintain residential character
Maximum stay duration: less than 30 days per stay
No business signage permitted on residential properties
Accessory buildings, mobile structures, and yard space cannot be used for rental activities

Operational Requirements:

One business license covers multiple properties owned by the same operator
Licenses are non-transferable to other properties or individuals
Property owner or local representative must respond to complaints within 24 hours
Operators are strictly liable for all guest activities and violations

Capacity and Safety:

Maximum occupancy: 2 guests per bedroom plus 4 guests per home
Smoke detectors required in each bedroom and corridor leading to bedrooms
Carbon monoxide detectors required on each floor
Liability insurance requirements

Parking and Neighborhood Compatibility:

Adequate off-street parking must be provided per Cedar City Ordinance 26-V-5
Parking spaces must be diagrammed and submitted with application
Operators must ensure guests do not create unreasonable noise or disturbances
Compliance with all noise, disorderly conduct, and disturbing the peace regulations

Community Engagement:

Notification required to all residences within 300 feet
Operators should maintain positive relationships with neighbors
Open communication about rental activities is encouraged

Renewal and Enforcement:

Annual license renewal due January 1st each year
Late penalties: 50% of fee if paid after January 15th, fee doubled if paid after February 15th
Violations may result in fines, license denial, suspension, or revocation
Falsifying information constitutes grounds for license rejection or revocation

County-Level Regulations

No specific Iron County regulations for short-term rentals were identified in the provided sources. Cedar City operates under its own municipal licensing system for STRs.

State-Level Regulations (Utah)

Utah State Business License required for business operations
Lodging sales tax collection and remittance requirements
Compliance with Utah Code Ann. 10-9a-511.5 regarding short-term rentals
Transient room tax obligations
State sales tax requirements for lodging businesses

Contact Information for Local Authority

Cedar City Building Department

Phone: (435) 865-4519
Email: Contact information not provided in sources
Website: www.cedarcity.org
Physical Address: 10 North Main, Cedar City, UT 84720
Fax: (435) 586-4362
Primary Contact: City License Officer

Cedar City Corporation

Phone: (435) 586-2950
Website: www.cedarcityut.gov
Ordinances Reference: www.cedarcity.org/6/Ordinances
Business License Applications: Available through Building Department

Links to Source Pages

Important Reminders for STR Investors

Cedar City has created a balanced regulatory environment that allows short-term rental operations while protecting neighborhood character and guest safety. Success in this market depends on thorough preparation, compliance with all regulations, and maintaining positive relationships with neighbors and local authorities. The licensing process is straightforward but requires attention to detail and proper documentation. Investors should budget for the $40 license fee plus any necessary safety equipment installation and insurance upgrades to meet commercial standards. The 30-day maximum stay requirement and guest capacity limits ensure that properties maintain their residential character while providing viable income opportunities for property owners.

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Ask the AI Advisor about Cedar City

Cedar City sits in Iron County in southwestern Utah, with a population of roughly 35,000 residents. The city has the feel of a small college town, anchored by Southern Utah University, yet it doubles as one of the Southwest's most convenient basecamps for outdoor adventure. Travelers know it as the "Gateway to the Parks" because of its proximity to some of the most iconic landscapes in the American West, and the town leans into that identity with a casual, outdoorsy atmosphere. It lies about 250 miles south of Salt Lake City and roughly 170 miles northeast of Las Vegas, making it a natural stopover or anchor point for road-trippers exploring the Grand Circle.

The Utah Shakespeare Festival has been a cultural fixture in Cedar City for decades, drawing theater lovers each summer and fall to a series of indoor and outdoor stages near the university campus. Productions rotate through Shakespeare, classic plays, and modern works, and the festival's presence gives the small downtown an unusually lively performing-arts scene for a town of its size. Visitors often pair an evening performance with a meal on Main Street before heading out to the surrounding red-rock country the next morning.

Just a short drive east of town, Cedar Breaks National Monument rises to more than 10,000 feet and looks like a miniature Bryce Canyon. About 25 miles, or roughly 45 minutes, from Cedar City, the monument's natural amphitheater of eroded limestone hoodoos is rimmed by a scenic drive and short walking paths. Because of its elevation, Cedar Breaks stays cool in summer and turns into a snow-dusted photography destination in winter, with some of the darkest night skies in the region.

A little farther afield, Zion National Park is about 60 miles to the south, roughly an hour to an hour and a half by car. Its towering sandstone cliffs, the Narrows, and Angel's Landing are among the most photographed spots in Utah, and many visitors use Cedar City as a quieter, more affordable alternative to staying inside the park. Heading east instead, Bryce Canyon National Park is approximately 80 miles away, or about an hour and a half by car, with the largest concentration of hoodoos anywhere in the world and a string of overlooks reachable right from the main road.

In the cooler months, Brian Head Resort sits roughly 30 miles east of Cedar City and offers skiing and snowboarding in Utah's high country, while in summer the same elevation becomes a playground for mountain biking and hiking.

Cedar City pulls together a rare combination of small-town warmth, university-town culture, and immediate access to three national parks plus a national monument. For short-term rental owners, that mix translates into a year-round stream of guests: theatergoers in summer, leaf-peepers and stargazers in fall, skiers in winter, and hikers, mountain bikers, and road-trippers throughout the warmer months.

Cedar City, Utah

Very Investor Friendly

STR Regulations for Cedar City, Utah