Sioux Falls, South Dakota Short-Term Rental Market
Sioux Falls, SD STRs averaged $168/night at 68.2% occupancy in June 2026, with revenue up 4.5% year over year.
Quick Answer: Sioux Falls, South Dakota is an active short-term rental market. average occupancy is 68%. average monthly revenue is $3,118. average daily rate is $168. the top operator is Stay605 with 29 listings. market score is 74/100 (grade B).
Market Score Breakdown
Five dimensions Apivex evaluates per market.
Market Overview
Sioux Falls, South Dakota’s largest city, posted a $167.52 average daily rate at 68.2% occupancy for June 2026, the latest tracked month, with average revenue per listing of $3,118. Occupancy rose 1.8% year over year, ADR was essentially flat (down 0.1%), and revenue rose 4.5%. The market’s rental demand score is a very strong 96.11 out of 100, and the total score of 73.61 is among the higher combined scores in this batch, supported by a 76.55 seasonality score and 78.82 investability score.
Entire-place listings account for 87.3% of the roughly 781 tracked units, with private rooms at 12.7%. Bedroom mix skews small: one-bedroom units are the largest segment at 33.0% of the 781 bedroom-tagged listings, followed closely by two-bedrooms at 30.5%, three-bedrooms at 17.3%, four-bedrooms at 14.6%, and five-plus-bedrooms at 4.6%. On booking channel, 55.2% of listings are Airbnb-only, 42.0% list on both Airbnb and VRBO, and just 2.8% are VRBO-only, one of the most Airbnb-concentrated markets in this batch.
Sioux Falls has a population of approximately 209,289 and led South Dakota in visitor spending for four consecutive years, 2022 through 2025. An estimated 3.4 million visitors came in 2025, spending roughly $3.3 million per day and supporting about 10,276 jobs and $126 million in state and local tax revenue. Visitors are largely drive-market leisure travelers from Minnesota, Iowa, and Nebraska, plus a substantial business, medical, and convention segment, and the city serves as a common stopover for travelers heading to the Black Hills and Mount Rushmore.
Seasonal Patterns
| Month | Occupancy | ADR | Revenue |
|---|---|---|---|
| Jan | 53% | $100 | $1,550 |
| Feb | 60% | $103 | $1,534 |
| Mar | 61% | $108 | $1,797 |
| Apr | 61% | $110 | $1,808 |
| May | 68% | $126 | $2,321 |
| Jun | 73% | $136 | $2,662 |
| Jul | 73% | $129 | $2,576 |
| Aug | 68% | $129 | $2,462 |
| Sep | 65% | $121 | $2,099 |
| Oct | 60% | $116 | $1,951 |
| Nov | 57% | $112 | $1,759 |
| Dec | 57% | $109 | $1,801 |
Top Short-Term Rental Operators in Sioux Falls
Ranked by total active listings. Useful for understanding the competitive landscape.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Stay605 | 29 | 1,657 | ★ 4.81 |
| 2 | Sioux Falls Furnished Rentals | 27 | 239 | ★ 4.70 |
| 3 | Kurtenbach Properties LLC | 27 | 205 | ★ 4.64 |
| 4 | SoDak Stays | 21 | 1,183 | ★ 4.89 |
| 5 | Real Estate 180 | 12 | 389 | ★ 4.80 |
What Kind of STR Should I Buy in Sioux Falls?
Revenue and pricing by property type, tier, and bedroom count.
Revenue by Bedroom Count
| 1 bed | 258 |
| 2 bed | 238 |
| 3 bed | 135 |
| 4 bed | 114 |
| 5 bed | 36 |
ADR by Property Tier
| Entire Home | $177 |
| Luxury | $245 |
| Professionally Managed | $185 |
Revenue by Dwelling Type
| Apartment | $2,235 |
| Entire Place | $3,289 |
| House | $3,656 |
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 55.2% |
| vrbo | 2.8% |
| both | 42% |
Investment Analysis
No housing snapshot is currently available for Sioux Falls, so gross rental yield cannot be calculated against a typical home value; investors should source local comparable sale prices directly.
Across ADR tiers, the all-listings average of $167.52 compares to $176.51 for entire-home listings (up 5.4%), $184.69 for professionally managed listings (up 10.2%), and $244.84 for the luxury tier (up 46.1% over the market-wide average), a comparatively modest luxury premium relative to coastal markets in this batch. Revenue by property type: houses averaged $3,656 in June, ahead of entire-place listings at $3,289 (houses running 11.2% higher) and well above apartments at $2,235 (houses running 63.5% higher).
Revenue rose 4.5% year over year on essentially flat ADR and a 1.8% occupancy gain, showing demand growth rather than rate growth is driving Sioux Falls’ revenue trend, a healthier pattern for long-run pricing power than markets relying on rate hikes alone. The 96.11 rental demand score is among the strongest in this entire data set, and the 78.82 investability score is solid, though the 48.40 revenue growth score, which measures a different, longer-run trend than the year-over-year figures above, and 58.32 regulation score are more moderate. Sioux Falls’ Residential Rental Permit program, effective since January 1, 2024 with a $50 fee, adds modest compliance overhead but does not restrict where or by whom STRs can be operated.
Revenue Trend (5 yr)
ADR & Occupancy Trends (5 yr)
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Booking Insights
Sioux Falls’ average booking window runs 56.2 days of lead time, one of the shorter windows in this batch of markets, with a 3.96-night average length of stay. The comparatively short lead time is consistent with a market that draws both planned leisure trips and shorter-notice business, medical, and convention travel tied to the city’s Sanford and Avera health systems and downtown convention activity.
For owners, a 56-day lead time supports a more responsive pricing approach than markets with 80-plus-day windows, since a meaningful share of demand books within roughly eight weeks of arrival. With occupancy staying above 53% even in the slowest month (January) and above 57% from October through December, Sioux Falls offers a comparatively stable booking calendar for owners who want more predictable year-round cash flow than highly seasonal coastal markets provide. The 3.96-night average stay also suggests owners can set 3-night minimum stays across most of the calendar without meaningfully restricting demand.
Short-Term Rental Regulations
Sioux Falls requires a Residential Rental Permit for all long- and short-term residential rentals, effective January 1, 2024, with a $50 per-address permit fee and enforcement penalties beginning July 1, 2024. A short-term (vacation home) rental is defined as any home, cabin, or similar building rented to the public for more than 14 days in a calendar year when not occupied by the owner or manager; properties rented 14 days or fewer annually are exempt from permitting.
Before a permit is issued, STR owners must show proof of a South Dakota state sales tax license and a state (health department) lodging license. Owners must complete two hours of city-approved training, waived if managed by a licensed real estate professional or third party, provide a local contact if they live more than 50 miles away, and post guest disclosures including emergency numbers, city phone numbers, the unit address, and a neighbor-courtesy statement. There is no owner-occupancy or primary-residence requirement and no cap on nights rented. Operating without a permit can bring fines up to $500 and up to 30 days in county jail.
On taxes, the combined burden currently totals roughly 8.7%: 4.2% state sales tax (temporarily reduced from 4.5% under HB1137, effective July 2023 through June 2027), 2% Sioux Falls municipal sales tax, 1.5% state tourism tax, and a 1% municipal gross receipts tax on lodging. When the state rate reverts to 4.5% in July 2027, the combined burden rises to roughly 9%. Enforcement is rated moderate.
Market Comparison
Sioux Falls’ 68.2% June occupancy runs well above the roughly 55% national median for short-term rentals, while its $167.52 ADR sits below the roughly $220 national median ADR, reflecting the market’s value-oriented, Midwest drive-market positioning. Even the luxury tier ($244.84 ADR) only modestly exceeds the national ADR median, underscoring that Sioux Falls is fundamentally a high-occupancy, moderate-rate market rather than a premium-pricing destination.
Top property managers in the market include Stay605 (29 listings, 1,657 reviews, 4.81 average rating), Sioux Falls Furnished Rentals (27 listings, 239 reviews, 4.70 rating), and Kurtenbach Properties LLC (27 listings, 205 reviews, 4.64 rating). Combined, these top three managers operate just 83 listings, about 10.6% of the roughly 781 tracked units, indicating a fragmented market with no single dominant operator. SoDak Stays (21 listings, 1,183 reviews) posts the highest average rating among the top five at 4.89. Real Estate 180 rounds out the top five with 12 listings and 389 reviews. With 96.11 in rental demand but only 78.82 in investability, Sioux Falls looks like a market where booking volume is not the limiting factor, entry costs and regulatory compliance play a larger role in overall returns.
Frequently Asked Questions About Sioux Falls, South Dakota
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