Sioux Falls, South Dakota Short-Term Rental Market
Sioux Falls STRs averaged $140 ADR, 64.3% occupancy and $2,473 monthly revenue in September 2026.
Quick Answer: Sioux Falls, South Dakota is an active short-term rental market. average occupancy in the Sioux Falls market area is 64%. average monthly revenue in the Sioux Falls market area is $2,473. average daily rate in the Sioux Falls market area is $140. the top operator in the Sioux Falls market area is Stay605 with 29 listings. market score is 74/100 (grade B).
Market data reflects the wider Sioux Falls market, which covers 2 areas. Regulations, taxes, and permit details below are specific to Sioux Falls.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Sioux Falls is South Dakota’s largest city, with a population of 209,289, and it works as the commerce and tourism hub of the southeast part of the state. The profile data estimates 3.4 million visitors in 2025, and the Sioux Falls area STR market reflects that demand. In September 2026, the average short-term rental earned an average daily rate (ADR) of $140 at 64.3% occupancy, producing average monthly revenue of $2,473. Compared with September 2025, occupancy is up 6.5%, ADR is up 3.5%, and revenue is up 6.0%, so growth is coming from both fuller calendars and higher rates.
The Sioux Falls area STR market tracks 781 listings. Entire places dominate with 682 listings (87.3%), while private rooms account for 99. By bedroom count, the mix is 258 one-bedroom listings, 238 two-bedroom, 135 three-bedroom, 114 four-bedroom, and 36 five-bedroom. On channels, 431 listings are on Airbnb only, 22 are on Vrbo only, and 328 are listed on both platforms, so dual listing is common among operators here.
The market score data rates rental demand at 96.1 out of 100 and the total market score at 73.6. Investability scores 78.8, seasonality 76.6, regulation 58.3, and revenue growth 48.4. The lower revenue growth score fits the longer history: annual occupancy peaked at 72.0% in 2021 and has since settled near 61%, with 2026 year to date at 61.1% occupancy, $138 ADR, and $2,350 average monthly revenue. Rates have climbed from $89 in 2017 to $138 in 2026 while occupancy normalized from the pandemic era high.
Visitors are largely drive market leisure travelers from Minnesota, Iowa, and Nebraska, plus a substantial business, medical, and convention segment tied to the Sanford and Avera health systems. Falls Park is the signature attraction, and the city also serves as a stopover for people heading to the Black Hills.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 53% |
| Feb | 60% |
| Mar | 61% |
| Apr | 61% |
| May | 68% |
| Jun | 73% |
| Jul | 73% |
| Aug | 68% |
| Sep | 65% |
| Oct | 60% |
| Nov | 57% |
| Dec | 57% |
Month-by-month nightly rates and revenue figures for Sioux Falls are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Sioux Falls market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Sioux Falls market as a whole, which includes Sioux Falls, so these counts are not Sioux Falls-only figures.
| # | 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 nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Sioux Falls 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 | 55.2% |
| vrbo | 2.8% |
| both | 42% |
Home Value Trends (Sioux Falls)
Typical home values, median sale prices, and the 10-year price trend for Sioux Falls 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 Sioux Falls — 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
Short-term rentals are permitted in Sioux Falls, but they require a Residential Rental Permit. The city program took effect January 1, 2024, and enforcement penalties began July 1, 2024. The permit costs $50 per address. A short-term (vacation home) rental is defined as a 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.
Before a permit is issued, 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, which is waived if the property is managed by a licensed real estate professional or third party. A local contact is required if the owner lives more than 50 miles away, and guest disclosures must be posted, including emergency numbers, city phone numbers, the unit address, and a neighbor courtesy statement.
There is no owner occupancy requirement, no primary residence requirement, and no cap on nights rented. The ordinance is a citywide registration program and does not impose a general zoning ban, though standard residential zoning and building and fire code compliance apply. Buyers should confirm zoning for a specific parcel with the City Planning and Development office before purchase. Enforcement severity is rated moderate, and operating without a permit can bring fines up to $500 and up to 30 days in county jail.
Lodging taxes total roughly 8.7%: 4.2% state sales tax, 2% Sioux Falls municipal sales tax, 1.5% state tourism tax, and a 1% municipal gross receipts tax on lodging. The state rate was temporarily reduced from 4.5% through June 2027, so the combined burden rises to about 9% in July 2027.
Market Comparison
Sioux Falls runs a high occupancy, moderate rate profile. Occupancy of 64.3% in September 2026 signals consistent demand, while ADR of $140 and a luxury tier at $179 make this a steady demand market rather than a premium rate destination.
That combination reflects the city’s positioning around affordable value. Investors buying at a typical home value of $332,295 are paying a moderate entry price, and the 7.4% gross yield reflects the balance between lower rates and strong occupancy.
The operator landscape is led by local companies. The largest are Stay605 with 29 listings and a 4.81 rating, Sioux Falls Furnished Rentals with 27 listings and a 4.70 rating, Kurtenbach Properties LLC with 27 listings and a 4.64 rating, SoDak Stays with 21 listings and a 4.89 rating, and Real Estate 180 with 12 listings and a 4.80 rating. Together the top five manage 116 of the 781 tracked listings, about 14.9%, so most of the market is held by smaller operators and individual owners. That leaves room for new hosts, though the established operators set the review and service standard.
Frequently Asked Questions About Sioux Falls, South Dakota
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