Deadwood, South Dakota Short-Term Rental Market
Deadwood STRs averaged $258/night at 25.6% occupancy in April 2026, with July peaking at 71.1% occupancy and $6,384 monthly revenue.
Quick Answer: Deadwood, South Dakota is an active short-term rental market. average occupancy is 67%. average monthly revenue is $6,893. average daily rate is $394. the top operator is Black Hills Adventure Lodging with 146 listings. market score is 53/100 (grade D).
Market data reflects the Black Hills regional market, which includes Deadwood. Regulations, taxes, and permit details below are specific to Deadwood.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Deadwood, South Dakota is a small historic mining town of approximately 1,209 residents that draws an estimated 3.5 million visitors annually. Its short-term rental market encompasses 1,508 active listings across a highly seasonal demand cycle driven by summer tourism, the annual Sturgis Motorcycle Rally in August, and a backdrop of 80-plus licensed gaming establishments. As of April 2026, the average daily rate was $258 and occupancy stood at 25.6%, reflecting April’s position as the softest month of the year. RevPAR in April 2026 was $65.95.
Year-over-year through April 2026, occupancy improved 7.0 percentage points and ADR rose 3.9%, though monthly revenue slipped 1.4% as the April trough pushed total throughput lower than the prior year.
The listing mix is dominated by entire-place rentals at 1,469 of 1,508 total listings (97%). Private rooms account for 42 listings. Bedroom distribution skews toward larger properties: 5-bedroom listings lead at 346, followed by 4-bedroom (336), 3-bedroom (309), 1-bedroom (292), and 2-bedroom (225). This large-property tilt reflects demand from groups traveling for the Sturgis Rally and Black Hills leisure trips. Channel distribution is unusual in that dual-listed properties (1,008) outnumber Airbnb-only (375) and VRBO-only (128) combined, indicating operators are actively managing cross-channel exposure.
Market scores reflect a highly seasonal, permit-constrained environment: investability scores 98.2, but overall total score is 52.8 and seasonality scores 47.2, both reflecting the pronounced peak-trough cycle.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 25% | $315 | $2,356 |
| Feb | 34% | $324 | $2,680 |
| Mar | 33% | $307 | $2,747 |
| Apr | 23% | $251 | $1,900 |
| May | 46% | $271 | $2,617 |
| Jun | 69% | $339 | $5,916 |
| Jul | 71% | $333 | $6,383 |
| Aug | 58% | $368 | $5,732 |
| Sep | 47% | $280 | $3,688 |
| Oct | 38% | $265 | $2,945 |
| Nov | 26% | $277 | $2,085 |
| Dec | 39% | $334 | $2,930 |
Top Short-Term Rental Operators in Deadwood
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Black Hills Adventure Lodging | 146 | 8,605 | ★ 4.80 |
| 2 | Deadwood Connections | 130 | 8,664 | ★ 4.79 |
| 3 | Evolve | 69 | 4,320 | ★ 4.66 |
| 4 | Black Hills Cabin Rentals | 68 | 3,737 | ★ 4.88 |
| 5 | Bear Property Management | 53 | 4,153 | ★ 4.92 |
What Kind of STR Should I Buy in Deadwood?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 292 |
| 2 bed | 225 |
| 3 bed | 309 |
| 4 bed | 336 |
| 5 bed | 346 |
ADR by Property Tier
| Entire Home | $397 |
| Luxury | $563 |
| Professionally Managed | $454 |
Revenue by Dwelling Type
| Apartment | $3,008 |
| Entire Place | $6,969 |
| House | $7,549 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 24.8% |
| vrbo | 8.5% |
| both | 66.7% |
Investment Analysis
Deadwood presents a distinctive STR investment profile: high ADR driven by a captive tourism economy, extreme seasonality, and a strict regulatory framework that limits supply expansion. No housing snapshot data is available for this market, so entry cost cannot be quantified from current data.
At the April 2026 average of $2,096 in monthly revenue, annualized revenue projects to approximately $25,153. However, this annualization significantly undersells peak performance. July, the strongest month historically, averages $6,384 in monthly revenue at a $333 ADR. June averages $5,794 at $332 ADR. In contrast, November averages $2,084 and January averages $2,356. Peak-to-trough revenue swings exceed 3-to-1 on a monthly basis, which requires careful cash flow planning.
Tier differentiation is substantial. All-listings ADR in April 2026 was $258. Entire-home listings averaged $262/night (+2% vs. all-listings). Professionally managed properties averaged $302/night (+17%), and the luxury tier reached $376/night (+46%). The premium tiers represent the clearest path to above-average returns in a market where compliance costs are non-trivial.
The operator landscape features meaningful professional management concentration. The top two operators, Black Hills Adventure Lodging (146 listings) and Deadwood Connections (130 listings), together represent 276 of 1,508 listings (18.3% of market supply). Revenue by property type shows houses averaging $2,227/month and entire-place listings averaging $2,112/month versus apartments at $1,319/month.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Deadwood STR guests book an average of 45 days in advance as of April 2026. This moderate lead time reflects a mix of planners — particularly those targeting the Sturgis Motorcycle Rally in August, who often book well in advance for limited inventory — and more spontaneous leisure travelers in the shoulder season. Holding rates firm through 6 weeks out and applying last-minute discounts selectively is a reasonable pricing framework.
Average length of stay is 3.2 nights, consistent with a weekend-oriented leisure market. The town’s event-driven demand (Sturgis Rally, gaming, historic tourism) tends to produce short, purposeful stays rather than week-long bookings. Higher minimum-night policies during peak event windows can protect calendar yield, while flexible minimums in shoulder months can improve occupancy in an otherwise soft off-season. At 25.6% occupancy in April 2026, filling calendar gaps during the trough season with 2-night minimum bookings is a reasonable strategy.
Short-Term Rental Regulations
Deadwood operates one of the more restrictive STR frameworks in the region. Under Deadwood City Ordinance Chapter 17.53, transient commercial use of residential property is explicitly prohibited. STRs are classified as one of three types: Bed and Breakfast Establishments, Specialty Resorts, or Vacation Home Establishments.
Vacation Home Establishments and Specialty Resorts may only operate in Commercial or Commercial Highway zoning districts. Residential zones (R1/R2) are off-limits for these categories. Bed and Breakfasts may operate in residential zones with an approved Conditional Use Permit (CUP). A 200-foot buffer between short-term rental properties applies citywide to prevent clustering.
All permitted STRs require: a Conditional Use Permit (reviewed annually), proof of South Dakota state excise tax registration, a Lodging License from the SD Department of Health, enrollment in the Deadwood Business Improvement District tax tiers, a City of Deadwood Business License, and a City Short-Term Rental License. Owner-occupancy and primary-residence requirements do not apply.
A 9% local occupancy tax applies. There is a narrow exception to the residential prohibition: properties may operate as STRs for up to 14 days in August around the Sturgis Motorcycle Rally without the full CUP framework.
Enforcement is rated strict. The city contracted Deckard/Rentalscape for automated monitoring and reports reaching 100% compliance among permitted operators. The current framework was adopted in 2023 (first reading April 24, 2023; second reading May 8, 2023). Permit cost is not published in available sources.
Market Comparison
Deadwood occupancy of 25.6% in April 2026 is well below the US STR median of approximately 55%, but this is entirely seasonal and reflects April being the market’s weakest month. Peak-season occupancy (July: 71.1%, June: 69.4%) substantially exceeds national medians. ADR at $258 in April 2026 is above the US STR median of approximately $220, reflecting the high-demand, event-driven character of this destination.
The operator landscape is moderately concentrated for a small market. Black Hills Adventure Lodging leads with 146 listings and 8,605 reviews (rating 4.80 out of 5). Deadwood Connections follows with 130 listings and 8,664 reviews (rating 4.79). Together these two operators account for 276 of 1,508 total listings (18.3% of supply). Evolve holds 69 listings (rating 4.66), Black Hills Cabin Rentals holds 68 listings (rating 4.88), and Bear Property Management manages 53 listings with the highest top-5 rating at 4.92.
Deadwood is not a market where independent operators easily dominate. The regulatory complexity (CUP, commercial zoning requirement, annual review) and concentrated professional management create meaningful barriers relative to less-regulated markets. The investability score of 98.2 reflects strong fundamentals for compliant operators, but the total market score of 52.8 signals that the seasonality and regulatory hurdles weigh heavily on overall attractiveness.
Frequently Asked Questions About Deadwood, South Dakota
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