Parowan, Utah

Parowan adopted Ordinance 2025-16 (Chapter 15.66 of the City Code) on October 9, 2025, effective April 1, 2026, establishing the town’s first formal short-term rental framework. STRs are legal and require an annual short-term rental city business license, subject to verification of insurance, tax compliance, and current contact information. Operators must register for state and local transient room tax accounts and remit all applicable lodging taxes, with a combined Iron County lodging tax of roughly 9.42%.

Zoning allows STRs by permit in the A-1, RE, R-1, R-1A, R-2, and R-3 residential zones plus the GC-1 and DC-1 commercial zones, but prohibits them in the HS-1 and I&M zones and in mobile homes, tents, RVs, or other non-permanent structures. A safety inspection is required before licensing and every other year afterward, covering smoke and carbon monoxide detectors, a fire extinguisher, and emergency exit information. Operational rules include a posted Good Neighbor Policy, a Local Contact Person reachable within 60 minutes, occupancy capped at one guest per 150 square feet of livable space, two off-street parking spaces (plus one per four guests above eight), amplified outdoor sound limits from 10 p.m. to 7 a.m., and a ban on large events or parties without city approval. A citywide cap limits STR licenses to 10% of total housing units, though owner-occupied (hosted) STRs are exempt from that cap; there is no owner-occupancy or primary-residence requirement generally, so non-owner-occupied whole-home rentals are permitted subject to the cap. Existing STRs with active licenses before the effective date are grandfathered but must still meet the new operational rules. Enforcement uses escalating fines for violations. Written HOA approval is required for properties in a platted subdivision with active CCRs.