Increasing development activities have led to a reduction in habitat quality and biodiversity loss. Utilization of industrial and mining capacities and the development of infrastructure are among the most important components of habitat quality decline in Kerman province. In this study, the quality and destruction of habitats in Kerman province were modeled using Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) model. The habitat quality map of the ungulates was valued using the cost compensation method, and the average habitat quality value was used as an independent variable in the regression analysis to predict the economic value of the habitat. The results showed the highest degradation of the habitats in the northwest of the province, where most of the threat factors are present. The northeastern parts of the province have experienced the least degradation. The highest-quality and most valuable areas, which cover 42.8% of the province, have the highest level of habitat degradation. These habitats are mainly cover by dense forests and rangelands. The total habitat value of Kerman was estimated at 2437 billion Tomans. The final habitat valuation map can be used as a decision-making criteria in environmental management for locating development projects, estimating damages, and updating the boundaries of protected areas.