Custer, South Dakota Short-Term Rental Market
Custer, SD STRs averaged $170/night at 47.4% occupancy in April 2026, with summer peaks above 75% near Custer State Park.
Quick Answer: Custer, South Dakota is an active short-term rental market. average occupancy is 74%. average monthly revenue is $5,549. average daily rate is $279. the top operator is Evolve with 72 listings. market score is 50/100 (grade D).
Market data reflects the Rapid City regional market, which includes Custer. Regulations, taxes, and permit details below are specific to Custer.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Custer is a small town of approximately 2,341 residents in the southern Black Hills of South Dakota, positioned as the gateway to Custer State Park (which draws over 2 million visitors annually), Crazy Horse Memorial, Wind Cave National Park, and Mount Rushmore. The short-term rental market reflects the town’s role as a high-traffic seasonal tourism destination despite its small permanent population.
In April 2026, the average daily rate was $170.28 and occupancy reached 47.4%, producing a RevPAR of $80.71. Year-over-year trends in April 2026 were negative: occupancy declined 3.23 percentage points, ADR fell 0.89%, and average monthly revenue dropped 6.68% compared to the prior year. The listing inventory is dominated by entire-place rentals at 2,281 units, with 171 private-room listings and 7 shared-room units. Channel distribution shows Airbnb as the primary platform with 1,040 Airbnb-only listings, 334 VRBO-only, and 1,085 on both platforms.
The bedroom mix skews toward smaller configurations: 1-bedroom units lead at 925 listings, followed by 2-bedroom (581) and 3-bedroom (482). Larger properties include 287 four-bedroom and 178 five-bedroom-or-larger units, reflecting the cabin-and-lodge character of the Black Hills vacation rental inventory.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 38% | $152 | $1,695 |
| Feb | 47% | $158 | $1,700 |
| Mar | 56% | $160 | $2,147 |
| Apr | 47% | $162 | $1,914 |
| May | 61% | $198 | $2,541 |
| Jun | 75% | $249 | $4,768 |
| Jul | 75% | $248 | $5,044 |
| Aug | 63% | $251 | $4,356 |
| Sep | 58% | $203 | $3,245 |
| Oct | 49% | $173 | $2,377 |
| Nov | 40% | $156 | $1,783 |
| Dec | 45% | $162 | $1,867 |
Top Short-Term Rental Operators in Custer
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 72 | 5,007 | ★ 4.78 |
| 2 | Stay in the Black Hills | 60 | 4,548 | ★ 4.82 |
| 3 | Soujourn | 40 | 6,573 | ★ 4.67 |
| 4 | Velora Management Group | 28 | 812 | ★ 4.58 |
| 5 | Bear Property Management | 27 | 1,648 | ★ 4.86 |
What Kind of STR Should I Buy in Custer?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 925 |
| 2 bed | 581 |
| 3 bed | 482 |
| 4 bed | 287 |
| 5 bed | 178 |
ADR by Property Tier
| Entire Home | $286 |
| Luxury | $400 |
| Professionally Managed | $332 |
Revenue by Dwelling Type
| Apartment | $3,907 |
| Entire Place | $5,823 |
| House | $6,137 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 42.3% |
| vrbo | 13.6% |
| both | 44.1% |
Investment Analysis
Custer’s investment profile is shaped by its exceptional summer peak demand offset by notable entry costs and meaningful regulatory constraints on new supply in residential zones. The typical home value was $477,596 as of April 2026, and the median list price was $674,483, reflecting the premium placed on Black Hills properties. The average STR generated $1,970 per month in April 2026, annualizing to approximately $23,640 at that run rate. At the typical home value, the implied gross yield is approximately 5.0% on the April run rate, though summer peak months produce dramatically higher revenue.
Tier comparisons show limited differentiation between managed and unmanaged properties. Professionally managed listings averaged $179.74 per night versus $170.28 for all listings, a $9 premium. The luxury tier commanded $272.54 per night, a $102 premium over the average. House listings averaged $2,120 per month versus $1,970 across all types. The revenue growth sub-score of 47.93 and negative year-over-year revenue trend (-6.68% in April) signal that the market is currently contracting from pandemic-era highs rather than expanding. The 2025 annual average revenue of $3,273 was the highest recorded full-year figure, and 2026 through April is tracking below that pace. The investability score of 78.59 reflects solid demand fundamentals but is tempered by the regulatory environment and the current downward trend.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
The average booking lead time in Custer was 39.5 days in April 2026, meaning guests typically reserve about five to six weeks ahead. The average length of stay was 3.77 nights, consistent with the multi-night nature of a Black Hills itinerary where visitors are touring several major attractions across multiple days.
The relatively short lead time in a high-demand summer market suggests that some portion of Custer bookings are made closer to travel dates, possibly by repeat visitors or regional travelers who are familiar with the area. Operators should open summer availability at competitive prices early in the calendar year and monitor pickup rates from the 60-day mark. With July and August historically at 63-75% occupancy, pricing discipline in the peak summer window is the primary revenue lever in this market.
Short-Term Rental Regulations
Short-term rentals are permitted in Custer but face significant new-entry restrictions. Custer enacted an ordinance banning new short-term rentals in residentially zoned areas, joining neighboring Deadwood and Hill City. Existing STRs were grandfathered under the ordinance. Key carve-outs permit owner-occupied properties (where the owner lives on-site), bed-and-breakfast operations, and long-term rentals of 28 days or more. A statewide South Dakota exception permits any property to operate as a short-term rental during the annual Sturgis Motorcycle Rally. New STRs seeking to operate must generally locate in commercially zoned areas.
The permit type is listed as an existing or grandfathered registration; no permit cost or renewal period was confirmed in publicly available sources. The occupancy tax rate listed in the source data is 1.5%, reflecting the statewide South Dakota tourism tax on lodging. The total effective lodging tax in Custer is higher, combining South Dakota’s 4.2% state sales tax, Custer’s 2% municipal sales tax, a 1% municipal gross receipts tax, and the 1.5% statewide tourism tax. Enforcement severity is rated moderate. Prospective investors should confirm current permit and registration requirements directly with the City of Custer at (605) 673-4824.
Market Comparison
Against national STR benchmarks (U.S. median occupancy approximately 55%, median ADR approximately $220), Custer’s April 2026 occupancy of 47.4% runs below the national median while its $170.28 ADR also trails the U.S. average. However, these April figures do not capture the summer peak when occupancy regularly exceeds 75% and ADR approaches $250, well above national norms for those months. The market’s overall score of 50.14 reflects the combination of strong summer demand, high seasonality, declining revenue trends, and new-supply restrictions.
Evolve leads the Custer operator landscape with 72 listings and 5,007 reviews at a 4.78 average rating. Stay in the Black Hills manages 60 listings at a 4.82 rating and is the top-rated operator in the market. Soujourn holds 40 listings with 6,573 reviews at 4.67. Velora Management Group (28 listings, 4.58) and Bear Property Management (27 listings, 4.86) round out the top five. The presence of strong regional operators like Stay in the Black Hills and Bear Property Management alongside national platforms indicates a market where local expertise and guest relationships are meaningful differentiators.
Frequently Asked Questions About Custer, South Dakota
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