Hill City, South Dakota Short-Term Rental Market
Hill City, SD STRs averaged $170/night at 47.4% occupancy in April 2026 across approximately 2,459 active listings.
Quick Answer: Hill City, 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 Hill City. Regulations, taxes, and permit details below are specific to Hill City.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Hill City is a small Black Hills tourism town of 953 permanent residents in western South Dakota, positioned as the gateway to Mount Rushmore, Crazy Horse Memorial, Custer State Park, Jewel Cave, and the 109-mile Mickelson Trail. The short-term rental market reflects a sharply seasonal leisure-and-outdoor-recreation demand profile, with peak activity in summer and a pronounced trough in winter. In April 2026, the market posted a 47.4% average occupancy rate and an average daily rate of $170.28, producing average monthly revenue of $1,970. Year over year, occupancy fell 3.23%, ADR fell 0.89%, and revenue declined 6.68%, indicating softening versus the prior year. Approximately 2,459 active listings serve the market. Entire-place listings dominate at 2,281 (92.8% of all listings); private rooms account for 171 and shared rooms for 7. The bedroom mix skews toward 1-bedroom units (925), followed by 2-bedroom (581), 3-bedroom (482), 4-bedroom (287), and 5-bedroom-plus (178). Both Airbnb and VRBO have meaningful presence: 1,085 listings appear on both platforms, 1,040 only on Airbnb, and 334 only on VRBO. The market’s overall score is 50.14 out of 100; investability and rental demand score higher at 78.59 and 80.64 respectively, while revenue growth sits at 47.93 and seasonality at 50.11.
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 Hill City
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 Hill City?
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
Hill City STR investment is constrained by two factors: the June 2022 residential ban on new STRs (discussed in the regulatory section), and the highly seasonal demand curve. On the revenue side, houses averaged $2,120 per month in April 2026, entire-place listings averaged $2,024, and apartments averaged $1,451. The luxury tier averaged $272.54 per night versus the market-wide $170.28, a 60% premium. Professionally managed properties averaged $179.74 per night, 6% above market. The typical Hill City home value is $470,384 (April 2026 Zillow estimate), with only 11 homes for sale at the time of measurement, indicating a thin market. At average monthly revenue of $1,970, annualized gross revenue is approximately $23,640, implying a gross yield of roughly 5.0% before expenses. However, peak months (June and July) historically average over $4,600 and $5,046 in monthly revenue respectively, so well-timed, actively managed properties can significantly exceed the annualized-April figure. The year-over-year revenue decline of 6.68% in April 2026 warrants monitoring before committing capital.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
In April 2026, Hill City guests booked an average of 39.52 days in advance and stayed an average of 3.77 nights. The roughly five-and-a-half-week lead time is shorter than many comparable mountain and outdoor recreation markets, suggesting some spontaneous travel behavior alongside planned vacations. The 3.77-night average stay is consistent with a destination where visitors are touring multiple Black Hills attractions over three to four days. During peak summer periods and particularly around the Sturgis Rally, booking windows for quality properties likely extend further in advance, while off-peak months likely see shorter lead times. Operators in this market benefit from setting peak-season pricing well in advance and adjusting shoulder-season rates closer to arrival.
Short-Term Rental Regulations
Hill City has a restrictive regulatory environment for new residential-zone STRs. A June 2022 voter-approved ballot initiative banned all new short-term rentals in residentially-zoned areas, superseding a prior city council ordinance that had capped STRs at 8% of properties per residential street. Existing STRs that were operating before the ban are grandfathered, but that grandfathered status is lost when the property is sold or changes ownership; grandfathered permits do not transfer to a new buyer. STRs remain permitted in commercially-zoned areas. Key carve-outs from the residential ban: owner-occupied properties where the owner lives in part of the dwelling, bed-and-breakfast operations, and rentals of more than 28 days are not subject to the ban. Under South Dakota state law, any property may be rented short-term during the annual Sturgis Motorcycle Rally regardless of zoning status. A permit is required for operating STRs. On taxes, Hill City STR stays are subject to South Dakota’s 4.2% state sales tax, a 2% Hill City municipal sales tax, a 1% municipal gross-receipts tax on lodging, and a 1.5% state tourism tax, totaling approximately 8.7% combined. Hosts must register with the South Dakota Department of Revenue for a tax license.
Market Comparison
The national median STR occupancy is approximately 55% and the median ADR is around $220. Hill City at 47.4% occupancy in April 2026 falls below the national occupancy median, reflecting the April off-peak position in a highly seasonal market. Its ADR of $170.28 also runs below the national median. Peak-month performance is considerably stronger: July averages 75.23% occupancy and $248 ADR, well above national norms. The year-over-year revenue decline of 6.68% in April 2026 contrasts with the 2021 and 2022 peak years, when annual average occupancy reached 61.76% and 56.33% respectively, at ADRs near $200. Three property managers are prominent in the Hill City market. Evolve leads with 72 listings and 5,007 reviews (average rating 4.784). Stay in the Black Hills manages 60 listings with 4,548 reviews (rating 4.823). Soujourn operates 40 listings with 6,573 reviews (rating 4.673). Collectively these three account for 172 listings, roughly 7.0% of the approximately 2,459-listing market.
Frequently Asked Questions About Hill City, South Dakota
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