Custer, South Dakota Short-Term Rental Market
Custer bars new residential STRs, Black Hills September 2026 shows $239 ADR, 62.4% occupancy, $4,129 revenue.
Quick Answer: Custer, South Dakota is an active short-term rental market. average occupancy in the Rapid City market area is 62%. average monthly revenue in the Rapid City market area is $4,129. average daily rate in the Rapid City market area is $239. the top operator in the Rapid City market area 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 StaySTRA evaluates per market.
Market Overview
Custer restricts new short-term rentals in residential zones, and that rule frames everything an investor should read here. The performance figures below describe the Black Hills STR market, a shared regional series, so they reflect the region as a whole rather than Custer alone. Data for September 2026 shows an average daily rate of $239, occupancy of 62.4%, and average monthly revenue of $4,129 per listing. Year over year, occupancy is up 8.4%, ADR is up 2.7%, and revenue is up 10.3%. Entire-place rentals averaged a $245 ADR and $4,298 in monthly revenue, while houses reached $4,474 and apartments $3,310. Custer is the gateway town to the southern Black Hills, with a year-round population of 2,341. The main draw is the adjacent Custer State Park, a 71,000-acre park that has passed 2 million visitors every year since 2020, along with Crazy Horse Memorial about 4 miles from downtown and Mount Rushmore, Wind Cave and Jewel Cave within a short drive. That visitor count reflects the park, not a city-specific figure. Travel concentrates from May through September, and the Buffalo Roundup & Arts Festival falls in September. Bedroom, channel, and listing-type counts are tracked at a shared regional level rather than uniquely for Custer, so this profile omits them. Over the longer run, average monthly revenue rose from $2,071 in 2017 to $3,269 in 2025, and the first nine months of 2026 average $3,478 at 57.9% occupancy and a $218 ADR. Read these numbers alongside the residential-zone restriction covered in the regulatory section.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 38% |
| Feb | 47% |
| Mar | 56% |
| Apr | 47% |
| May | 61% |
| Jun | 75% |
| Jul | 75% |
| Aug | 63% |
| Sep | 59% |
| Oct | 49% |
| Nov | 40% |
| Dec | 45% |
Month-by-month nightly rates and revenue figures for Custer are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Rapid City market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Rapid City market as a whole, which includes Custer, so these counts are not Custer-only figures.
| # | 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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Custer are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 42.3% |
| vrbo | 13.6% |
| both | 44.1% |
Home Value Trends (Custer)
Typical home values, median sale prices, and the 10-year price trend for Custer are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Custer — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Short-term rentals are legal in Custer, but new entry into residential neighborhoods is restricted. Custer, along with Deadwood and Hill City, passed an ordinance banning new short-term rentals in areas zoned residential. Existing rentals are grandfathered, and the registration type on record is existing or grandfathered registration. Exceptions allow owner-occupied homes, bed-and-breakfast operations, and long-term rentals of 28 days or more. State law also permits any property to operate as an STR during the annual Sturgis Motorcycle Rally. New STRs are generally directed to commercial zones. Neither an owner-occupancy requirement nor a primary-residence requirement applies, and there is no published cap on nights per year. Lodging stays carry South Dakota’s 4.2% state sales tax, Custer’s 2% municipal sales tax, a 1% municipal gross receipts tax, and the statewide 1.5% tourism tax, a combined burden in the high 8% range. Permit fees and renewal terms were not found in public sources, so confirm them with the City of Custer at 605-673-4824. Enforcement is rated moderate. The larger barrier for investors is the residential-zone restriction itself, since grandfathered status can sunset on sale in comparable Black Hills towns. Verify the status of any specific property before closing. The ordinance was passed in the early 2020s and has been covered in regional reporting through 2024. This summary is informational and not legal advice.
Market Comparison
In September 2026 the Black Hills STR market posted 62.4% occupancy and a $239 ADR. Annual results are lower: 2025 occupancy was 54.7% with a $219 ADR, and through September 2026 occupancy is 57.9% and ADR is $218, so the September strength is partly a seasonal effect. The market’s strengths are a durable destination anchor in Custer State Park, with more than 2 million annual visitors, and sharply higher summer pricing, with ADR reaching $254 in August. Its weaknesses are the deep winter trough, with January occupancy at 37.7%, and the regulatory limit on new residential supply in Custer. That limit can protect existing, grandfathered operators from new competition, but it also narrows the path for new buyers. Top operators are tracked at a shared regional level rather than uniquely for Custer, so this profile omits them.
Frequently Asked Questions About Custer, South Dakota
Are short-term rentals legal in Custer, SD?
What is the average Airbnb ADR in the Custer area?
What is the occupancy rate for short-term rentals near Custer?
How much revenue does a Custer-area short-term rental earn?
When is the best time of year for STR demand in Custer?
What taxes apply to short-term rental stays in Custer?
How far ahead do guests book in the Black Hills?
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