6 Best Short-Term Rental Markets in South Dakota for 2025

South Dakota's short-term rental market is gaining traction due to its booming tourism industry, economic growth, and increasing traveler demand. Whether you’re searching for short-term rentals near me or considering short-term apartment rentals near me for investment, understanding the best markets is crucial. Utilizing short-term rental data analysis, we have identified the 6 best short-term rental markets in South Dakota for 2025 based on occupancy rates, rental income potential, and market growth. 

6 Best Short-term Rental Markets in South Dakota for 2025

1. Rapid City 

Rapid City serves as the gateway to Mount Rushmore and the Black Hills, making it a top-performing short-term rental market in South Dakota. Investors can expect occupancy rates above 80% and average daily rental rates of $175, driven by year-round tourism demand. 

2. Sioux Falls 

As South Dakota’s largest city, Sioux Falls attracts a mix of business travelers, medical tourists, and event-goers. With consistent short-term rental demand, properties see average occupancy rates of 75% and nightly rental rates reaching $150. 

3. Deadwood 

A historic gaming and entertainment hub, Deadwood offers a thriving market for short-term rentals. The city’s tourism-driven economy ensures peak-season occupancy rates of 85% and high rental yields for investors looking to maximize ROI. 

4. Custer 

Situated near Custer State Park and Crazy Horse Memorial, Custer benefits from strong seasonal demand. Short-term rental market data indicates that properties in this area experience an average nightly rate of $160 and steady booking trends throughout the summer months. 

5. Keystone 

As the closest town to Mount Rushmore, Keystone sees millions of visitors annually. This tourism hub boasts occupancy rates exceeding 85% during peak months and some of the highest rental revenue potential in South Dakota for investors targeting short-term accommodations. 

6. Spearfish 

Spearfish combines outdoor recreation with a growing local economy, making it an attractive market for short-term rentals. Investors can benefit from a median home price of $350,000, ROI Scores above 75, and average nightly rates of $140. 

Conclusion 

South Dakota presents excellent opportunities for short-term rental investors looking to capitalize on tourism, business travel, and seasonal demand. By analyzing short-term rental market data, investors can identify high-yield locations and optimize rental income. Whether you're searching for short-term rentals near me or analyzing free short-term rental data, these six markets stand out as the most promising for 2025.