Hot Springs, South Dakota Short-Term Rental Market
Hot Springs, SD STRs averaged $152/night at 39.5% occupancy in April 2026, with an investability score of 86 out of 100.
Quick Answer: Hot Springs, South Dakota is an active short-term rental market. average occupancy in the South Dakota Area market area is 60%. average monthly revenue in the South Dakota Area market area is $3,347. average daily rate in the South Dakota Area market area is $221. the top operator in the South Dakota Area market area is Evolve with 49 listings. market score is 70/100 (grade C).
Market data reflects the South Dakota Area regional market, which includes Hot Springs. Regulations, taxes, and permit details below are specific to Hot Springs.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
The Hot Springs, SD short-term rental market recorded an average daily rate of $152 and occupancy of 39.5% in April 2026, generating average monthly revenue of $1,511 per listing. RevPAR reached $60. Year-over-year, occupancy fell 3.3 percentage points and revenue declined 5.4%, while ADR grew 3.6%, following the same divergence pattern seen in other softening STR markets.
Hot Springs sits at the southern gateway to the Black Hills, adjacent to Wind Cave National Park and The Mammoth Site, which draws more than 100,000 visitors annually. The STR inventory is relatively small compared to larger Black Hills destinations: entire-place listings total 1,308 and private rooms 177, with no shared-room category represented. By bedroom count: 1-bedroom units are the most common at 463, followed by 2-bedroom (349), 3-bedroom (338), 4-bedroom (198), and 5-bedroom (136). Airbnb-only listings number 864, VRBO-only 157, and 464 listings appear on both platforms. Market scores show investability at 86/100 and a total composite of 70/100, indicating a market with solid fundamentals but modest scale.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 38% |
| Feb | 40% |
| Mar | 43% |
| Apr | 40% |
| May | 49% |
| Jun | 59% |
| Jul | 56% |
| Aug | 49% |
| Sep | 45% |
| Oct | 51% |
| Nov | 48% |
| Dec | 39% |
Month-by-month nightly rates and revenue figures for Hot Springs are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in South Dakota Area market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the South Dakota Area market as a whole, which includes Hot Springs, so these counts are not Hot Springs-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Evolve | 49 | 1,516 | ★ 4.65 |
| 2 | Vacation Home Renter | 8 | 242 | ★ 4.86 |
| 3 | Highland Meadows Resort | 8 | 645 | ★ 4.95 |
| 4 | Sioux Falls Stays | 5 | 154 | ★ 4.90 |
| 5 | Badlands RV And Cabins | 5 | 212 | ★ 4.95 |
What Kind of STR Should I Buy in Hot Springs?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Hot Springs 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 | 58.2% |
| vrbo | 10.6% |
| both | 31.2% |
Home Value Trends (Hot Springs)
Typical home values, median sale prices, and the 10-year price trend for Hot Springs 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 Hot Springs — 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
South Dakota has no statewide STR-specific licensing law; it regulates lodging primarily through taxation and a state lodging establishment license. Operators of vacation homes, B&Bs, and similar accommodations must obtain a lodging establishment license from the South Dakota Department of Health. Stays under 28 days are treated as taxable transient lodging, though rentals of 10 or fewer days per year qualify for a casual/occasional exemption.
In Hot Springs specifically, the city treats short-term rentals as a residential use in its zoning table rather than imposing a ban, and updated its hospitality-tax code to include cabins, B&Bs, houses, and campgrounds as taxable lodging. No owner-occupancy requirement, primary-residence requirement, or annual night cap was identified.
Lodging taxes stack to approximately 8% combined: 4.5% state sales tax, 1.5% state tourism tax, and 2% Hot Springs city sales tax. Properties within the downtown Business Improvement District also face a $2-per-night occupational tax on transient guests. No recent STR ordinance changes were published online; investors should confirm current licensing and local ordinance details directly with City Hall (605-745-3135), as the city was actively refining its framework.
Market Comparison
Hot Springs, SD’s April 2026 ADR of $152 and occupancy of 39.5% both trail the national STR medians of approximately $220 ADR and 55% occupancy. This reflects its smaller market scale and the lower-cost accommodation profile of a rural South Dakota destination. The investability score of 86/100 suggests that despite the below-median revenue metrics, the market has favorable entry economics.
The operator landscape is notably concentrated at the top. Evolve leads with 49 listings and 1,516 reviews (rated 4.65). Vacation Home Renter holds 8 listings (4.86 rating). Highland Meadows Resort manages 8 listings with 645 reviews and a 4.95 rating. Sioux Falls Stays and Badlands RV and Cabins each hold 5 listings, rated 4.90 and 4.95 respectively. The small operator count and the top five’s combined 75 listings (out of 1,308 entire-place inventory) indicate a market dominated by individual operators rather than large management firms, with Evolve as the only scaled platform manager.
Frequently Asked Questions About Hot Springs, South Dakota
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