Overview: Are short‑term rentals allowed in Moab?

Short‑term rentals (STRs) are explicitly prohibited within the City of Moab. Moab Municipal Code 17.09.700 states that, with very narrow exceptions, the short‑term rental of dwellings is prohibited across virtually all zones (A‑2, C‑1, C‑3, C‑5, FW, I‑1, R&D‑1, R‑2, R-3, R-4, RA‑1, and any other zone where STRs are not listed as a permitted use). The only permissible lodging uses in residential areas are bed and breakfast facilities and guest apartments, and those must comply with Moab’s accessory dwelling unit and guest apartment provisions (Chapter 17.70 and 17.71).

• Explicit rule: Yes, STRs are prohibited. A separate “Nightly Rental Licenses” ordinance (Moab Municipal Code 5.67) sets licensing for nightly rentals; however, because 17.09.700 bans STRs except for bed and breakfasts and guest apartments, standard STR activity (unhosted or hosted short‑term stays under 30 days) is not permitted. Investors should treat “Nightly Rental License” as the regulatory framework for permitted lodging operations—namely bed and breakfasts and guest apartments.
• Source: Moab Municipal Code 17.09.700

How to start a short‑term rental business in this market

Because STRs are prohibited except for bed and breakfast facilities and guest apartments, investors should pursue one of the following compliant paths:

1. Bed and Breakfast (B&B) in a residential zone

• Confirm the subject property is in a residential zone and not otherwise restricted by HOA covenants or special overlays.
• Meet Moab’s accessory dwelling unit rules (Chapter 17.70), guest apartment rules (Chapter 17.71), and the B&B provisions referenced in 17.09.700.
• Obtain a business license for Nightly Rentals (MMC 5.67).
• Pass any required fire and building code inspections.
• Collect and remit Transient Room Tax (TRT) and applicable sales tax; register with the Utah State Tax Commission if the listing platform does not handle tax collection.
• Designate a local property manager who can respond 24/7, align on parking and noise mitigation, and post required safety/occupancy notices.

2. Guest Apartment compliance (owner‑occupied)

• Ensure the unit meets guest apartment standards (Chapter 17.71), including occupant limits and owner‑residence requirements.
• If renting for fewer than 30 days, comply with Nightly Rental licensing and tax obligations.
• If renting for 30 consecutive days or longer, it is typically not considered an STR under Moab’s definition and is less likely to require nightly rental licensing (but always confirm with the City Recorder).

3. Operating a non‑residential lodging business

• Explore hotel/motel, hostel, resort, or other commercial‑zoned lodging operations that are permitted uses under Moab’s commercial or specific overlay zoning. Because residential STRs are prohibited, some investors pivot to acquiring or developing lodging in zones where nightly rentals are a permitted commercial use.

4. State‑level registration and taxes

• Register for Utah sales and Transient Room Tax with the Utah State Tax Commission if you will collect taxes directly.
• Adopt accounting practices that track rental nights, gross receipts, cleaning/service fees, and taxes collected or remitted.
• Monitor platform changes: some platforms collect TRT/sales tax automatically; confirm for your listing.

Compliance checklist (quick‑run)

• Verify zoning and permitted lodging type (B&B vs. guest apartment).
• Complete the Nightly Rental License application (MMC 5.67).
• Secure approvals (building/fire) and any health guidelines applicable to B&B operations.
• Register with Utah State Tax Commission; confirm TRT and sales tax collection.
• Draft house rules, parking plan, and guest information; ensure 24/7 local management.
• Keep permits and tax IDs posted/available for inspections and audits.

Required documents, permits, licenses, and guidelines

• Nightly Rental License (City of Moab): Application and renewal under MMC 5.67.
  • Application typically requires: property ownership proof, site plan, floor plan, management plan, local manager contact, proof of insurance (if required), occupancy limits, safety documentation, and inspection outcomes.
• Accessory Dwelling Unit and Guest Apartment compliance:
  • Chapter 17.70 (ADUs) and Chapter 17.71 (Guest Apartments) govern eligibility, density, owner‑residence, and unit standards.
• Business registration and taxes:
  • Utah State Tax Commission registration for sales and Transient Room Tax.
  • Monthly or quarterly filing schedules depending on revenue; recordkeeping of nights rented, receipts, and fees.
• Insurance and safety:
  • Maintain property and liability coverage appropriate for lodging; comply with building, life‑safety, and fire codes.

Specific regulations (city, county, state)

City of Moab (municipal)

• STR prohibition: 17.09.700 bans short‑term rentals in most zones, defining STR as any rental for 30 consecutive days or less, and covering transient lodging (hostels, hotels, inns, etc.). The only permitted lodging exceptions are bed and breakfasts and guest apartments that comply with Chapters 17.70 and 17.71.
  • Source: Moab Municipal Code 17.09.700 (Ordinance 24‑03 § 1(3), 2024)
• Nightly Rental License enforcement: MMC 5.67 establishes nightly rental licensing and penalties. Operating a nightly rental without a license is a Class A misdemeanor, with fines accruing each day the violation continues.
  • Note: Treat this licensing regime as applicable to permitted lodging types (B&B, guest apartments). Standard STRs remain prohibited by 17.09.700.
• Bed and breakfast/guest apartments: Only permissible lodging uses in residential zones; must adhere to zoning and accessory structure standards.
• Operational constraints: Common city ordinances (noise, parking, trash) apply and are enforced through complaint response and code enforcement.

County (Grand County)

• The provided sources do not include county‑specific STR requirements. Investors should confirm whether Grand County imposes additional transient lodging rules for areas outside Moab city limits or for county‑level licensing/taxes.

State of Utah

• Definition and scope: Utah does not define STRs uniformly statewide. Municipalities commonly treat rentals under 30 days as transient lodging.
• Transient Room Tax (TRT): Municipalities may levy up to 1%; counties up to 4.25% on temporary lodging (hotel, motel, inns, STRs, etc.). Operators must collect and remit unless the platform does so.
• Resort Community Tax (RCT): Cities/towns with transient room capacity ≥ 66% of permanent population may impose a local sales and use tax up to 1% to support tourism.
• Platform/online listing protections: State law prevents municipalities from prohibiting the act of listing an STR or requiring listing removal; municipalities can still enforce local ordinances and educate operators on compliance.
• Tax registration and filings: Operators should register with the Utah State Tax Commission and file returns on the required cadence; keep detailed records of nights rented, rates, and fees.

Contact information (local authority in charge of STRs)

• City Recorder’s Office (official custodian of Moab Municipal Code): (435) 259‑5121
• City website: moabcity.org
• City mailing address: City of Moab, 117 E. 100 S., Moab, UT 84532
• Best first step: Call the City Recorder’s Office to confirm whether your proposed use (B&B vs. guest apartment vs. commercial lodging) is allowed at your site and to obtain current Nightly Rental License requirements.

Links to source pages

• Moab Municipal Code 17.09.700 (Residential short‑term rentals prohibited): moab.municipal.codes/Code/17.09.700
• Moab Municipal Code 17.70 (Accessory Dwelling Units): moab.municipal.codes/Code/17.70
• Moab Municipal Code 17.71 (Guest Apartments): moab.municipal.codes/Code/17.71
• City of Moab website (contact and general information): moabcity.org
• Utah State Tax Commission (transient room tax registration and filings): tax.utah.gov
• Utah Short‑Term Rental Policy & Best Practices Guide (2023 Update): luau.utah.gov/wp-content/uploads/Short-Term-Rentals-Guide-2-2023-Update-WEB.pdf
• Moab Ordinance 2007‑09 (legislative history clarifying STR prohibition): www.moabcity.gov/DocumentCenter/View/947

Key takeaway for investors Moab prohibits standard STRs in residential zones. If you intend to operate lodging, pursue either a bed and breakfast facility or a guest apartment in compliance with Chapters 17.70 and 17.71, obtain a Nightly Rental License under MMC 5.67, and meet all applicable building, fire, and tax requirements. For properties outside the city or in commercial zones, verify whether nightly rentals are a permitted use and whether county or state taxes apply. Always confirm current requirements with the City Recorder before acquiring or listing any property.