Best Neighborhoods in Park City for Nightly Rentals (and Why They Perform Well)
Snippet Answer: The best neighborhoods in Park City for nightly rentals are Old Town, Deer Valley, Canyons Village, and Prospector Square, thanks to strong occupancy, top nightly rates, and flexible zoning. Buyers in 2026 can expect steady revenue potential and lasting appreciation in these sought-after resort zones.
🏔️ Why Park City Buyers Are Focused on Nightly Rentals
Park City has evolved from a ski-season getaway into a year-round luxury investment hub. Tourism consistently exceeds 4 million annual visitors, with both ski and summer seasons driving high occupancy (Visit Park City). That year-round appeal fuels strong short-term rental (STR) demand across every property type — from ski-in/ski-out condos to modern mountain chalets.
As of late 2025, median home prices in Park City hover around $2.1–$2.2 million according to Redfin and Zillow. Despite steep prices, investors continue buying nightly rentals because of the city’s unique blend of:
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Premium nightly rates (averaging $800–$900 per night in peak months).
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Limited housing supply that sustains property values.
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Lifestyle income hybrid — buyers can enjoy the property part of the year while earning during peak tourist seasons.
AirDNA’s latest market data reports average annual rental revenue around $70,000 and occupancy near 55%, though high-end listings can exceed $100,000 per year.
🏡 1. Old Town – The Classic Heart of Park City
Old Town sits at the center of everything — walkable to Main Street, ski lifts, restaurants, and festivals. The neighborhood’s historic charm and proximity make it the most sought-after nightly rental zone.
Why It Performs Well
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Prime location near the Town Lift and Main Street nightlife.
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Year-round tourism — Sundance Film Festival, summer concerts, and mountain biking.
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Nightly rental zoning approved for most residential parcels within the Old Town overlay (verify exact parcel zoning with the City of Park City Planning Department).
Investment Snapshot
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Average nightly rate: $850–$1,200 during peak ski season.
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Occupancy: 55–60% annually; up to 90% in winter months.
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Home prices: Typically $2M–$4M for remodeled cottages and ski-in homes.
Bottom line: High acquisition costs, but unbeatable demand and long-term appreciation. Old Town remains the benchmark for STR success in Park City.
🎿 2. Deer Valley – Luxury, Exclusivity, and High ADRs
Deer Valley’s reputation for luxury skiing extends naturally into the STR market. This gated, service-oriented resort community offers top-tier nightly rates and consistent demand from affluent travelers.
Why It Performs Well
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Ski-in/ski-out luxury condos and estates attract high-spending guests.
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Resort-managed amenities (concierge, shuttles, spas) boost reviews and bookings.
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Limited zoning for STRs keeps competition low and occupancy stable.
Investment Snapshot
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Average nightly rate: $1,000–$1,400 for luxury homes.
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Occupancy: 45–50% (lower volume but higher margins).
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Annual revenue: Often $100K–$150K+ for high-end rentals.
Buyer Tip: Deer Valley is best suited for investors prioritizing capital appreciation and luxury clientele over raw cap rate.
🚠 3. Canyons Village – Reliable Returns and Modern Inventory
Canyons Village, part of Park City Mountain Resort, is a growth engine for STR investment. Since its redevelopment by Vail Resorts, this neighborhood has seen a surge in purpose-built nightly rental properties — from contemporary condos to managed luxury lodges.
Why It Performs Well
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Year-round resort activity — skiing in winter, mountain biking and golf in summer.
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Turnkey management options through major hospitality brands.
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Zoning designed for short-term occupancy — minimal licensing friction.
Investment Snapshot
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Average nightly rate: $600–$900 depending on property type.
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Occupancy: ~60% average, boosted by summer conventions and events.
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Typical home/condo prices: $1.2M–$2M+.
Investor Insight: Canyons Village delivers some of the best cap rates (5–7%) in Park City thanks to strong bookings and efficient management options.
🏘️ 4. Prospector Square – The Budget-Friendly Cash Flow Play
Located just east of Old Town, Prospector Square offers one of the most accessible entry points for nightly rental buyers. While less glamorous, it offers solid year-round performance and favorable zoning for STRs.
Why It Performs Well
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Central location with easy access to ski shuttles and trails.
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Affordable condos and townhomes with established rental demand.
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Zoning permits nightly rentals in designated sections (confirm via city maps).
Investment Snapshot
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Average nightly rate: $300–$500.
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Occupancy: 55–65% with steady summer traffic.
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Home prices: Typically $600K–$1M for condos.
Investor Insight: Prospector Square properties often yield 6–8% cap rates, outperforming luxury areas on cash flow, though long-term appreciation may be slower.
🌄 Honorable Mentions
Kimball Junction
Outside the main city limits but a growing hub for mid-market STRs. Modern condos and proximity to the Utah Olympic Park attract family travelers. Average nightly rates run $250–$400, and zoning in some developments supports STR use.
Jordanelle Reservoir Area
Just minutes from Park City, this rapidly developing area features new construction with STR-friendly communities. Lower prices (starting around $800K) and lake access make it appealing for buyers priced out of core ski zones.
🏠 Short-Term Rental Regulations & Licensing in Park City
Park City has strict but navigable STR rules, and compliance is crucial for buyers.
According to the City of Park City’s Short-Term Rental Guidelines, any property rented for fewer than 30 days requires:
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A valid business license from the city.
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Verification of zoning allowing nightly rentals (check parcel zoning online).
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Sales and transient room tax collection registration with the Utah State Tax Commission.
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Compliance with HOA rules — some condo associations limit STRs even in permitted zones.
Key Zoning Notes:
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Old Town, Canyons Village, and Prospector Square: generally STR-permitted zones.
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Deer Valley: select communities only.
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Residential neighborhoods outside resort overlays: STRs often prohibited.
Buyers should confirm zoning before closing and ensure any property marketed as an “Airbnb-ready” listing actually holds an approved license.
📊 Market Overview: Park City STR Snapshot (2025–2026)
| Metric | Park City Average (2025 Q4) | Source |
|---|---|---|
| Median Home Price | $2.18M | Redfin |
| Average STR Occupancy | 49–55% | AirDNA |
| Average Daily Rate (ADR) | ~$832/night | AirDNA |
| Annual Rental Revenue | ~$70K | AirDNA |
| Typical Cap Rate Range | 5–7% (Resort Markets) | Freddie Mac Multifamily Research |
💡 Tips for Buying a Nightly Rental in Park City
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Run a true net income analysis. Include management, HOA, cleaning, and platform fees — STR profit margins shrink fast if you underestimate costs.
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Focus on walkability and views. Guests pay premiums for proximity to Main Street or ski lifts.
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Invest in professional design and photography. Park City’s rental market is saturated — well-branded listings consistently outperform.
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Leverage local management companies. They handle permits, taxes, and guest logistics for 20–30% of gross income.
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Time your purchase smartly. Late spring and early summer often offer better deal flow as sellers reposition before the ski rush.
📈 Why 2026 Looks Strong for STR Buyers
Several tailwinds support Park City’s STR market heading into 2026:
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Steady tourism recovery from international markets.
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Limited new construction keeping supply tight.
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Hybrid work trends encouraging longer stays and mid-term bookings.
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Property appreciation across the Wasatch Back continues to outpace national averages (roughly 6–8% annually).
Even with rising mortgage rates, cash buyers and 1031 exchange investors remain active, reinforcing pricing stability.
❓FAQ: People Also Ask
Q: Are nightly rentals still profitable in Park City?
Yes. Despite high home prices, occupancy and nightly rates remain strong. Well-managed properties in STR-approved zones typically achieve 5–7% cap rates.
Q: Can I manage my own Airbnb in Park City?
Yes, but you must hold a business license and comply with tax collection rules. Many owners use local managers to maintain consistency and avoid compliance issues.
Q: Which neighborhood offers the best balance of ROI and lifestyle?
Canyons Village often provides the best mix of cash flow and convenience, while Old Town leads for appreciation and prestige.
🧭 Final Thoughts
Each Park City neighborhood has a distinct investment personality:
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Old Town delivers the ultimate “location premium.”
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Deer Valley caters to luxury clientele with sky-high ADRs.
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Canyons Village balances returns and management ease.
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Prospector Square offers budget-friendly entry points and better cash flow.
As Park City continues its trajectory as a global mountain resort destination, nightly rental ownership remains one of the most compelling ways to combine lifestyle, equity growth, and passive income.
💬 Ready to Explore Park City’s STR Market?
If you’re considering buying a nightly rental or income property in Park City, let’s connect. I’ll help you identify STR-approved neighborhoods, run real revenue projections, and find a property that matches your goals.
Written by: Wayne Levinson, Park City Real Estate Specialist
Tagline: Where there’s a will, there’s a Wayne.
