Koosharem, Utah Short Term Rental Regulations Guide for Airbnb hosts

Executive Overview: Are Short-Term Rentals Allowed in Koosharem?

YES — Short-term rentals are explicitly allowed in Koosharem, UT. The town has several active STR businesses operating, including Grass Valley Rentals, Shelkor Developments, Koosharem Collectibles, and Koosh Cabins. The Koosharem Town Council is actively developing the regulatory framework for STRs, evidenced by Ordinance No. 2025-01 presented in June 2025, which establishes a 1% municipal transient room tax on short-term rentals. This tax ordinance indicates that STRs are not only permitted but also recognized as an established business category subject to local taxation.

What do Airbnb hosts actually earn in Koosharem?

Koosharem hosts earn a median $20,404/year with $169 ADR and 45% occupancy.

Top performers pull in $27,897+ per year.

See the full Koosharem market breakdown

How to Start a Short-Term Rental Business in Koosharem

Starting an STR business in Koosharem follows a straightforward process aligned with Utah state requirements and emerging local regulations:

Phase 1: Pre-Application Planning

Property Assessment: Verify your property is suitable for STR use and meets local zoning requirements
Market Analysis: Study the local tourism patterns and existing competition (note Koosharem's proximity to recreational areas)
Financial Planning: Budget for the 1% municipal transient room tax in addition to other fees

Phase 2: Legal Compliance

Business License: Obtain a general business license through Koosharem Town Hall
STR Registration: Register as a short-term rental operator (specific requirements pending ordinance implementation)
Tax Registration: Register for state and local tax collection, including the 1% municipal transient room tax

Phase 3: Operational Setup

Property Preparation: Ensure your property meets safety and occupancy standards
Marketing Setup: Establish your STR listing on appropriate platforms
Local Integration: Connect with Koosharem's business community and tourism infrastructure

Required Documents, Permits, Licenses, and Guidelines

Local Requirements (Koosharem)

Business License: Required through Koosharem Town Hall (forms available at koosharem.us/businesslicense)
STR Registration: Pending formal implementation of Ordinance No. 2025-01
Property Address: Must be a legitimate Koosharem address for business registration
Transient Room Tax Registration: Required once Ordinance No. 2025-01 is fully implemented

State Requirements (Utah)

Sales Tax License: Required through Utah State Tax Commission
Tourism Marketing Fee Registration: If applicable
Business Registration: With Utah Division of Corporations and Commercial Code

Specific Regulations: Koosharem, Sevier County, and State Level

Koosharem Municipal Regulations

Transient Room Tax: 1% tax rate on STR revenue (Ordinance No. 2025-01 pending final approval)
Business License: Standard municipal business licensing requirements apply
Zoning Compliance: STRs must comply with local zoning ordinances (specific residential/commercial designations to be verified)

Sevier County Level

County Business Licensing: Working toward creation of county-wide business license program for data collection purposes
Zoning Enforcement: County zoning policies apply to unincorporated areas
Fire Safety: County fire marshal oversight for safety compliance

Utah State Regulations

Tourism Marketing Fee: 0.55% fee on STR transactions
Sales Tax: 6.85% combined state and local sales tax (varies by location)
Business Registration: State requirements for business operation
Health and Safety: State building and fire safety codes apply

Contact Information for Local STR Authority

Koosharem Town Hall (Primary Local Authority)

Phone: (435) 638-7598
Email: [email protected]
Address: 5 North Main, Koosharem, UT 84744
Website: koosharem.us/contact-us
Office Hours: Tuesday and Thursday, 10am-2pm
Council Meetings: Second Wednesday of every month

Additional Resources

Sevier County: Contact for county-level zoning and business licensing information
Utah State Tax Commission: For state tax registration and compliance
Koosharem Building Department: For property compliance questions

Source References

Koosharem Town Council Meeting Minutes (June 11, 2025): https://www.utah.gov/pmn/files/1311225.pdf
- Contains Ordinance No. 2025-01 establishing 1% transient room tax for STRs
Koosharem Town Website - Businesses Directory: https://koosharem.us/businesses
- Lists current STR businesses and town contact information
Koosharem Town Website - Business Licenses: https://koosharem.us/businesslicense
- Provides business license application forms and requirements
Koosharem Town Website - Contact Information: https://koosharem.us/contact-us
- Official contact details for town administration
San Juan County General Plan (2022): https://sanjuancountyut.gov/sites/default/files/fileattachments/planning/page/3441/sjc_general_plan_2022.pdf
- Contains regional planning context including business regulation goals

Investment Considerations

Koosharem presents a developing STR market with emerging regulatory clarity. The town's proactive approach to establishing STR taxation indicates institutional support for the industry. The presence of multiple existing STR operators demonstrates market viability, while the relatively simple regulatory framework makes entry barriers manageable for new investors. However, investors should monitor the full implementation of Ordinance No. 2025-01 and any additional regulatory developments as the town continues to formalize its STR policy framework.

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Ask the AI Advisor about Koosharem

Koosharem is a tiny town in Sevier County in central Utah, sitting at roughly 5,800 feet of elevation in the high desert country east of the Sevier River valley. The community is home to only a few hundred residents, giving it the quiet, close-knit feel that defines many of the small ranching settlements scattered through this stretch of the western Rockies' foothills. The town functions primarily as a quiet base for visitors heading into the surrounding high country, particularly the lakes, forests, and red-rock landscapes of the Fishlake region. The nearest sizable community is Richfield, the Sevier County seat, which lies about 30 miles to the west along U.S. Route 89; Salt Lake City is roughly a three-hour drive to the north.

Fishing, boating, and lakeside relaxation draw most travelers to the area, and the centerpiece is Fish Lake, one of Utah's most popular natural mountain lakes. Set within Fishlake National Forest, the lake sits at about 8,800 feet elevation and is well known for trophy-sized lake trout, rainbow trout, and kokanee salmon. It is also home to the Pando aspen clone, an enormous genetically identical colony widely recognized as one of the largest single living organisms on earth. The lake and its small resort community are roughly 30 to 35 miles southeast of Koosharem via state highways and forest roads.

A much shorter drive brings visitors to Otter Creek Reservoir, a smaller but well-regarded fishery that anchors the western side of Fishlake National Forest. The reservoir is popular with anglers, kayakers, and campers, and offers a more peaceful alternative to the busier Fish Lake. It lies only about 15 miles southwest of Koosharem along US-89 and is a common stop for travelers passing through the Sevier River corridor.

To the south and east, Koosharem is also within day-trip range of southern Utah's red-rock country. Capitol Reef National Park, with its cliffs, canyons, fruit orchards, and scenic Highway 24, is roughly 80 miles southeast of town, while Bryce Canyon National Park, famous for its hoodoo rock formations, is about 90 miles to the south-southwest. Both parks make Koosharem an appealing launch point for visitors wanting to combine quiet forest and lake experiences with iconic national-park sightseeing.

For short-term rental owners, Koosharem offers a strategic location near some of Utah's most sought-after outdoor destinations without the premium pricing or heavier regulations of gateway towns like Torrey or Panguitch. Its small size keeps rental competition minimal, while its proximity to Fish Lake, Otter Creek Reservoir, and the broader Fishlake National Forest provides steady seasonal demand from anglers, hunters, hikers, and families seeking uncrowded access to central Utah's high country.

Koosharem, Utah

Generally Investor Friendly

STR Regulations for Koosharem, Utah