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 is 60%. average monthly revenue is $3,347. average daily rate is $221. the top operator 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 Apivex 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 | ADR | Revenue |
|---|---|---|---|
| Jan | 38% | $127 | $1,452 |
| Feb | 40% | $123 | $1,309 |
| Mar | 43% | $124 | $1,375 |
| Apr | 40% | $123 | $1,316 |
| May | 49% | $152 | $1,745 |
| Jun | 59% | $186 | $2,767 |
| Jul | 56% | $181 | $2,786 |
| Aug | 49% | $169 | $2,338 |
| Sep | 45% | $149 | $1,845 |
| Oct | 51% | $146 | $1,923 |
| Nov | 48% | $144 | $1,942 |
| Dec | 39% | $135 | $1,568 |
Top Short-Term Rental Operators in Hot Springs
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | 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 pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 463 |
| 2 bed | 349 |
| 3 bed | 338 |
| 4 bed | 198 |
| 5 bed | 136 |
ADR by Property Tier
| Entire Home | $231 |
| Luxury | $398 |
| Professionally Managed | $270 |
Revenue by Dwelling Type
| Apartment | $2,259 |
| Entire Place | $3,549 |
| House | $3,765 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 58.2% |
| vrbo | 10.6% |
| both | 31.2% |
Investment Analysis
Hot Springs, SD presents an accessible entry market with an investability score of 86/100. No Zillow housing data is currently available for this area on file, so property-value-based yield calculations cannot be confirmed from the current data set.
Tier comparisons show the typical gradient. Entire-home ADR of $160 is 5% above the all-listing average of $152. Luxury-tier listings averaged $259/night, a 70% premium over the market. Professionally managed listings averaged $182/night, a 20% premium, modest compared to larger markets, suggesting less differentiation between self-managed and professionally managed listings in this smaller market.
The market has posted steady ADR gains year-over-year (2023: $164, 2024: $171, 2025: $177) even as occupancy plateaued in the mid-40s to high-40s range in recent years before a 2026 dip. Revenue growth scored 70/100, reflecting a positive but moderate outlook. The regulatory environment is structured but not restrictive: South Dakota requires a lodging establishment license and combined lodging taxes of approximately 8%, but there is no owner-occupancy requirement and no night cap.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Hot Springs, SD guests book an average of 40 days in advance as of April 2026. The 40-day lead window reflects road-trip planners organizing Black Hills itineraries, particularly for summer visits that combine multiple attractions. Operators have approximately six weeks to optimize pricing before peak-season bookings commit.
Average length of stay is 4.2 nights, the longest in this comparison group, consistent with visitors making extended stays at a regional hub destination with multiple nearby attractions. At 39.5% occupancy and a 4.2-night average stay, properties turn over roughly 3 times per month. Minimum-stay policies of 3-5 nights align with the current booking behavior and may help reduce the cleaning and operational burden of short single-night stays.
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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