Rules and permits
ADU Short-Term Rental Rules
Nightly and weekly rental is where ADU rules are strictest. State law lets cities ban it, and most of the cities covered here have.
Plenty of ADU conversations start with a vacation rental idea. In Salt Lake County, that idea usually ends at the city code. The rules have two layers: a state layer that sets what cities may do, and a city layer that says what they actually did. This page covers both, as they read in September 2026.
What "short-term" means
Utah Code 10-8-85.4 defines a short-term rental as a residential unit, or part of one, offered "for occupancy for fewer than 30 consecutive days." Every city code on this page uses the same 30-day line. The state definition of an internal ADU even builds it in: the unit is created "for the purpose of offering a long-term rental of 30 consecutive days or longer."
The state layer
Three pieces of state law matter here:
- Internal ADUs, 10-21-303(3)(i). A city may "prohibit the rental or offering the rental of an internal accessory dwelling unit for a period of less than 30 consecutive days." This lets a city ban short-term rental of an internal ADU. The statute does not impose the ban itself.
- The listing rule, 10-8-85.4(2) and (8). Generally, a city may not enact or enforce an ordinance that prohibits someone from listing or offering a short-term rental on a short-term rental website, or punish someone solely for listing it. Subsection (8) removes that protection for "an individual who lists or offers an internal accessory dwelling unit as a short-term rental" when the city has recorded a notice for that unit under 10-21-303(5).
- Detached ADUs, 10-21-304(4)(b)(iv). Under the detached ADU section that took effect October 1, 2026, a city's rules may prohibit a detached ADU "rented for less than 90 consecutive days."
Counties have a parallel short-term rental section (17-78-1102) with the same internal ADU carve-out. For the rest of the state framework, see Utah ADU laws.
City rules for short-term rental of an ADU
| City | Short-term rental of an ADU |
|---|---|
| Millcreek | Prohibited for detached ADUs. Internal and attached: unresolved, confirm with the city |
| Salt Lake City | Prohibited; a recorded covenant bars short-term rental of the ADU and the main house |
| Murray | Prohibited for the ADU and the main house; an ADU and a short-term rental cannot exist on the same property |
| South Salt Lake | Prohibited for the ADU and the primary dwelling; ADU occupants may not sublease |
| Holladay | An ADU, if rented, must be rented for at least 30 consecutive days |
| Sandy | Prohibited for detached ADUs. Attached ADUs may alternate with long-term rental if approved for both |
| Cottonwood Heights | Prohibited: "ADUs shall not be used as short-term rentals" |
| Unincorporated Salt Lake County | Prohibited; rentals must be 30 consecutive days or more |
Millcreek: the open question
Millcreek's code is plain for detached units: "A detached ADU shall not be used as a short-term rental." For internal and attached ADUs, the city's ADU web page says they "may operate short term rentals" with an ADU application and business license. The code does not say that, and section 18.71.120 includes a cure period for an internal ADU owner "renting or offering to rent the ADU as a short-term rental," which reads as enforcement against it. Until the city confirms, treat this as unresolved. Confirm with the city, in writing, before designing around short-term income.
Even where a Millcreek short-term rental is allowed, citywide limits apply under chapter 5.19: a license is required, LLCs and other entities may not own or operate one, the owner must live in the primary dwelling, there is a maximum of 30 licenses per council district with a waiting list, new rentals must be at least 400 feet from another, and one person may hold only one. See Millcreek ADU rules.
Salt Lake City and Murray: the main house is covered too
In both cities, the ban reaches past the ADU. Salt Lake City's recorded covenant must state "that the ADU and principal structure cannot be used for short term rental," and it can be enforced by the city or "any adversely affected party." Murray's code says that by applying for an ADU, the owner agrees "the main dwelling and the proposed ADU will not be used as a short-term rental." Murray's application also says ADUs are "strictly prohibited on any property operating an approved Short-Term Rental."
Sandy: the one alternating path
Sandy prohibits short-term rental of detached ADUs. For an attached ADU, short-term use is prohibited "unless the property has obtained approvals for such use" under the city's short-term rental section. A property holding approvals for both "may alternate between them, provided only one use is in operation at any time and the active use is designated on the current business license."
Long-term rental still needs a license
A ban on short stays does not mean long-term rental is paperwork-free. Millcreek requires a business license to rent an ADU. Salt Lake City requires a business license and enrollment in its landlord/tenant program before the zoning certificate. South Salt Lake requires a rental business license. Holladay requires an annual license for a rented ADU. Sandy pairs an administrative Special Use Permit with an annually renewed business license. Cottonwood Heights requires an annual ADU license after inspection. Murray says rental "may require" a business license. Owner occupancy rules apply alongside all of this; see ADU owner occupancy.
What to do with this
If income matters to the project, plan around long-term rental of 30 consecutive days or more, which is the rental these cities' ADU rules are built for, with the right license and owner occupancy. Model it on realistic assumptions rather than nightly rates. Our page on ADU rental income explains what to account for, and ADU ROI covers the uncertainty. Nothing on this page promises that any city will approve a rental use; only the city can do that.
Questions about ADU short-term rentals
Does Utah law ban short-term rentals in ADUs?
No. State law lets cities prohibit renting an internal ADU for less than 30 consecutive days, and since October 1, 2026 lets cities prohibit renting a detached ADU for less than 90 consecutive days. Whether a ban exists depends on your city's code.
What counts as a short-term rental?
Utah's municipal code section on short-term rentals defines one as a unit offered for occupancy for fewer than 30 consecutive days. The city codes covered here use the same 30-day line, so a lease of 30 consecutive days or longer is treated as a long-term rental.
Can I list my ADU on a vacation rental website if my city bans it?
State law generally stops cities from punishing someone only for listing a short-term rental online. That protection does not apply to an internal ADU if the city has recorded a notice for it under the internal ADU statute. In any case, renting it short-term where the city prohibits it is a violation.
Can a Millcreek ADU be a short-term rental?
Not a detached one; the code prohibits it. For internal and attached ADUs, the city's ADU page says they may operate short-term rentals, but the code does not clearly allow it and treats short-term rental of an internal ADU as something the city can enforce against. Confirm with the city in writing before planning around it.
Which city allows any short-term rental in an ADU?
Of the cities covered here, Sandy is the one whose code describes a path: an attached ADU may alternate between short-term and long-term rental if the property holds approvals for both, with only one use active at a time. Sandy's detached ADUs may not be short-term rentals. Millcreek's internal and attached ADUs are unresolved.