Utah Rental Portfolio Guide

What you need to know before building or growing a rental portfolio in Utah — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.

Property tax rate
0.57%
Rank 8 / 51 (low → high)
Top state income tax
4.55%
top marginal
Security deposit cap
No cap
Source-of-income law
Unknown

Tax burden on Utah rentals

Property tax

0.57%

effective rate on median home value

At 0.57% effective, this is one of the lowest property tax burdens in the country (rank 8 of 51). Portfolio holding costs stay low even in appreciating markets — a big structural advantage for long-term holds.

State income tax

4.55%

top marginal rate

A top marginal rate of 4.55% is moderate. Portfolio income above the federal deduction stack still faces this rate on top of federal, so tax-optimized holding structures (installment sales, 1031s, cost-segregation) matter more here than in no-tax states.

Security deposit rule

No statutory cap on security deposits. Landlords set the deposit at whatever the market accepts — typically one to two months' rent, sometimes more for higher-risk applicants or pets. Local ordinances may still apply.

Deposit rules change; verify current statute before drafting a lease.

Best cash-flow markets in Utah

Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Utah’s 0.57% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.

MarketMedian priceMedian rentAnnual property taxCF / month
Vernal, UT$359,129$1,433$2,047$-979
Cedar City, UT$412,278$1,496$2,350$-1,235
Logan, UT$469,336$1,477$2,675$-1,575
St. George, UT$530,009$1,929$3,021$-1,584
Ogden, UT$520,531$1,630$2,967$-1,754
Provo, UT$546,641$1,825$3,116$-1,756

State median across the metros: $525,270 home, $1,635 rent, $-1,669/mo modeled cash flow.

Track your Utah rental portfolio

The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Utah property carries the state-specific tax burden shown above through to the cash flow calculation.

Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.