Are you drawn to Moab’s red rock lifestyle but want steadier returns than short-term rentals can offer? You are not alone. Many investors are shifting to year-round tenants for predictable income and simpler compliance. This guide gives you a clear plan for Moab’s long-term rental market, from demand drivers and local rules to financing, risk, and operations. Let’s dive in.
Why Moab rewards long-term rentals
Moab is a small city with a resident population of about 5,200, within a county of roughly 9,700 people, so rental demand is tied to local jobs and affordability rather than big population growth. U.S. Census data confirms the small base. Even so, average listed rent sits around $2,500, according to Zillow’s Moab rental snapshot. Typical home values trend in the mid-hundreds of thousands, with a local index near the $563,000 range on Zillow’s Moab value page, which makes buy-and-hold underwriting essential.
Understand city vs county rules
If you plan to hold for long-term tenants, zoning and licensing still shape your strategy. Inside Moab city limits, the municipal code restricts many short-term rental uses and requires licensing and inspections for permitted overnight rentals. Review Moab City’s short-term rental page before you underwrite any STR potential. In unincorporated Grand County, permits, safety checklists, and transient taxes apply to stays under 30 days; see the Grand County STR FAQ for requirements.
Tourism and seasonality still matter
Arches and Canyonlands drive regional traffic, with peak visitation March through October. The National Park Service has tested timed-entry and is evaluating access management, which can influence seasonal staffing and local rental needs. Stay informed through NPS updates on Arches planning as you model demand. Even if you lease year-round, expect slower winter leasing and plan reserves accordingly.
Who rents long term in Moab
The largest employment sectors include retail, accommodation and food services, as well as health care and education. Many roles are seasonal or moderate wage, which influences rent thresholds for workforce households. Review the local job mix on DataUSA’s Moab profile and price units for sustainable occupancy. You will also see demand from remote workers and public-land agency staff who prefer 6 to 12-month terms.
Choose the right property type
- Single-family homes and 2–4 unit buildings offer flexible layouts that attract longer tenancies and can balance vacancy risk.
- Accessory Dwelling Units and duplex conversions can unlock affordable, steady demand where zoning allows.
- If you plan to owner-occupy a 2–4 unit property and use rental income to qualify, review Fannie Mae’s rental income guidance to understand documentation and reserve requirements.
Model your numbers conservatively
Use multiple comps and update them seasonally. Set long-term rents to support near-full occupancy at local wage levels, not short-term peaks. Zillow’s market trends for Moab can help you validate asking rents. Include a conservative winter vacancy assumption and a repair-and-maintenance reserve to cover travel and supply costs in a small market.
Finance and insure wisely
Investment loans usually require larger down payments, higher reserves, and loan-level pricing adjustments compared with primary residences. FHA programs typically require you to live in the home, so pure investments do not qualify without owner occupancy. Confirm underwriting, reserves, and loan limits with your lender and use Fannie Mae’s rental income rules to prepare documentation. For insurance, secure a landlord policy and check FEMA flood zones early using the FEMA Flood Map Service; also budget for wildfire mitigation and potential policy changes that may affect premiums over time.
Lease and compliance essentials in Utah
Use a clear, written lease that includes a move-in condition inventory, entry and maintenance clauses, and notice provisions consistent with Utah law. Utah requires security deposit accounting and generally a 30-day return window, with itemization for any deductions; see the Utah Courts deposit guidance. For nonpayment, state statutes allow short notice periods for pay-or-quit actions, but timelines vary by issue, so tailor your notices precisely. Keep excellent records of service, communications, and repairs.
Operate for retention
Tenant retention lowers turnover and vacancy costs. Offer 12-month renewals, moderate and predictable increases, and timely maintenance. In Moab’s climate, prioritize energy efficiency, reliable heating, durable finishes, and strong internet service. If you plan a conversion or an ADU, confirm permits and any special local requirements before you begin work.
Risk and hazard due diligence
Before you buy, confirm parcel-level risks and operating constraints. Use this checklist:
- Verify whether the property is in Moab City or unincorporated Grand County, then confirm STR rules and licensing.
- Check FEMA flood zones, elevation data, and any local floodplain rules using the FEMA Flood Map Service.
- Evaluate wildfire exposure and budget for mitigation work in your operating plan.
- Confirm parking, winter access, utilities, and water service.
- Underwrite for long-term rents, not short-term revenue, and keep documentation of local comps and vacancy assumptions.
Local resources to review
- Moab City: Short-term rental licensing and zoning summaries.
- Grand County: STR permitting and business licensing FAQ.
- National Park Service: Arches access updates to track seasonal impacts.
- Data sources: Zillow market snapshots, DataUSA job mix, and FEMA flood maps.
- Financing rules: Fannie Mae guidance for 2–4 unit properties and rental income.
The Wells approach and next steps
Investing for long-term tenants in Moab rewards careful underwriting and strong local navigation. At Wells Land and Real Estate, you get place-based insight, zoning fluency, and a steady hand from due diligence through closing and operations. We pair boutique service with deep regional ties so you can make confident, well-documented decisions. Ready to explore on- and off-market options and build a durable plan for your rental? Connect with Wells Land and Real Estate to get started.
FAQs
What are average long-term rents in Moab today?
- Recent data shows average listed rents around $2,500 per month, based on public market snapshots.
How do Moab’s STR rules affect a long-term strategy?
- City and county treat short-term rentals differently, so confirm whether a property is inside Moab City or in unincorporated Grand County and model your plan around those rules.
How does seasonality impact long-term vacancy?
- Peak visitation runs spring through fall, which supports local employment and demand; plan for slower winter leasing and keep reserve funds for longer turn times.
Can I use an FHA loan for an investment in Moab?
- FHA typically requires owner occupancy, so pure investments do not qualify; some buyers use 2–4 unit purchases and live in one unit while renting the others.
How do I check flood or wildfire risk on a property?
- Review FEMA flood maps for parcel-level flood zones and consult local and state wildfire resources, then price insurance and mitigation work into your operating budget.
