Lead, South Dakota Short-Term Rental Market
Lead, SD Black Hills STRs averaged $258/night at 25.6% occupancy in April 2026, with a July peak of 71.1% occupancy and $6,384 in monthly revenue.
Quick Answer: Lead, 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 Lead. Regulations, taxes, and permit details below are specific to Lead.
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Lead is a historic gold-mining town in the northern Black Hills of South Dakota, immediately adjacent to Deadwood, and serves as a hub for Black Hills outdoor recreation, Deadwood casino spillover, Sturgis Motorcycle Rally overflow, and winter skiing at Terry Peak. The short-term rental market reported 1,511 active listings as of the latest snapshot, a small, well-managed supply base relative to the demand intensity it handles at peak. April 2026 was a seasonal trough: 25.6% occupancy and $258 ADR produced a RevPAR of $66. Year-over-year through April 2026, occupancy improved 7.04% and ADR rose 3.91%, while total revenue declined 1.39%, reflecting the complex interplay of listing-count changes and per-property performance. Supply is almost entirely entire-place units: 1,469 of 1,511 listings (97.2%) are entire-place rentals, with 42 private rooms. By bedroom count, larger properties are well represented: 5-bedroom (346 listings), 4-bedroom (336), 3-bedroom (309), 1-bedroom (292), and 2-bedroom (225). Channel distribution favors dual-platform operators: 1,008 listings appear on both Airbnb and VRBO, 375 on Airbnb only, and 128 on VRBO only. The overall market score of 52.8 reflects a challenging seasonality profile (sub-score: 47.2) offset by an exceptional investability sub-score of 98.2 and a favorable regulation environment (73.4).
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 Lead
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 Lead?
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
Lead presents an interesting yield picture: the Zillow typical home value was $383,366 as of April 2026, but the median list price of for-sale properties was $843,983, a significant gap suggesting that the properties actively being listed for sale skew toward premium vacation and resort homes rather than typical local residences. Against the typical home value, the 2025 full-year average of $3,924 per month translates to approximately $47,100 in annualized revenue, implying a gross yield of about 12.3%. Against a purchase at the median list price of $843,983, that same annualized revenue implies a yield of approximately 5.6%. Investors should determine actual comparable purchase prices for STR-suitable properties before relying on either figure. Tier differentials are meaningful: luxury-tier properties averaged $376 per night versus the all-listings ADR of $258, and professionally managed properties averaged $302 per night, an 17% premium over market. By property type, houses generate approximately $2,227 per month in April versus $2,112 for entire-place listings and $1,319 for apartments. Extreme seasonality is the primary risk factor: April occupancy at 23.4% and January at 24.7% generate a fraction of the summer peak revenue, making accurate annual projections critical. Operators who price premium August rates around the Sturgis Motorcycle Rally and maintain winter pricing discipline during the ski season can materially improve the annualized average.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Lead area guests book an average of 45 days in advance, a lead time consistent with vacation planning for summer Black Hills trips and events like the Sturgis Rally. The average length of stay is 3.2 nights, slightly shorter than most mountain vacation markets, reflecting the drive-market nature of most visitors (day-trippers from Rapid City and the broader Plains region extending stays to 2-4 nights). At April’s 23.4% occupancy (approximately 7.0 occupied nights per month), a typical listing sees about 2 guest stays monthly during trough season. At peak July (71.1% occupancy, approximately 21.3 nights), the same calculation yields approximately 7 stays, a dramatic operational shift requiring significant housekeeping and restocking capacity. Operators who can cleanly execute 6-7 turnovers during July and August, and who hold firm on premium August pricing around the Sturgis Rally, generate a disproportionate share of the annual return.
Short-Term Rental Regulations
Lead was among the first South Dakota municipalities to adopt a formal short-term rental ordinance. Operating an STR in Lead requires three separate approvals: a City of Lead Short-Term Rental License (obtained through City Hall at 801 W. Main St.), a South Dakota Department of Health lodging license (or city inspection if unavailable), and a South Dakota sales tax license. The process includes a health and safety inspection before the city license is issued. STRs are generally permitted in residential zones with no outright residential ban; no owner-occupancy, primary-residence, or night-cap requirement was found in available records. On taxes, lodging rentals under 28 consecutive days are subject to a combined rate of approximately 8.7%, comprising South Dakota state sales tax (4.2%), the state tourism tax (1.5%), Lead’s 2% municipal sales tax, and Lead’s 1% municipal hospitality and gross-receipts tax on lodging. Enforcement is administrative: non-compliance can result in license denial or revocation, fines, a 10% penalty on late tax payments plus interest, and potential health-department closure of the property. Exact current license fees and any recent ordinance amendments should be confirmed directly with City Hall at (605) 584-1401.
Market Comparison
Against US STR market medians of approximately 55% occupancy and $220 ADR, Lead’s 2025 annual average (42.0% occupancy, $331 ADR) runs significantly below median on occupancy but above median on rate, reflecting a low-frequency, high-rate profile driven by peak summer concentration. The market is managed at a notably higher concentration than most: Black Hills Adventure Lodging leads with 146 listings and 8,605 reviews at a 4.80 average rating. Deadwood Connections holds second with 130 listings and 8,664 reviews at a 4.79 rating. Evolve ranks third with 69 listings at a 4.66 rating. These three operators collectively manage approximately 345 of 1,511 active listings, representing about 22.8% of the market, a high share for a local-operator landscape. Black Hills Cabin Rentals (68 listings, 4.88 rating) and Bear Property Management (53 listings, 4.92 rating) round out a high-quality professional management ecosystem. The dominance of local Black Hills specialists over national platforms in this market indicates that regional knowledge and relationships provide competitive advantages here.
Frequently Asked Questions About Lead, South Dakota
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