Custer, SD Airbnb Market Data, Statistics, and Occupancy Rates

Custer Short-Term Rental Market Overview

Custer, SD sits at the gateway to some of the Black Hills' most iconic attractions, and that tourism-driven demand translates into meaningful short-term rental opportunity. With an ROI score of 65 out of 100 and an above-average revenue-to-price ratio, the market rewards investors who can capitalize on intense summer seasonality. Average annual revenue reaches $57,696 across 60 active listings, and larger properties push well past that figure — 4-bedroom units average $94,378 per year. While occupancy runs below the state average at 26%, the compressed peak season delivers outsized monthly returns that help compensate.

Key Market Statistics

According to Rabbu market data, the Custer short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Custer

Custer's appeal to STR investors rests on a compelling revenue-to-price ratio driven by strong summer tourism demand and relatively accessible property values compared to coastal resort markets.

Expert Market Assessment

"Custer represents an attractive but distinctly seasonal STR opportunity. The market's strength is concentrated in a powerful summer peak — July revenue of $12,484 per listing is roughly 20 times the January figure of $622, creating one of the more pronounced seasonal swings you'll encounter. Three- and four-bedroom properties emerge as the clear performers, generating the highest occupancy, RevPAN, and total revenue. The below-average supply/demand balance and rapid listing growth (92% year-over-year) warrant attention; investors who differentiate with quality amenities and target the higher-bedroom-count segment are best positioned to capture premium returns."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Custer

Average revenue by month in Custer

Custer's revenue curve is steeply seasonal: July leads at $12,484 per listing while January bottoms out at just $622, a 20:1 spread that underscores how dependent this market is on summer tourism. The profitable window runs roughly May through September, with meaningful drop-offs in the shoulder and winter months.

Active Airbnb listings by property size in Custer

Supply is concentrated in 1- and 2-bedroom units (15 each), with 12 three-bedroom and only 8 four-bedroom listings available. The relative scarcity of larger properties — combined with their superior revenue metrics — may signal an underserved niche for investors willing to acquire or build bigger homes.

Average daily rate (ADR) by property size in Custer

ADR scales sharply with size in Custer, rising from $120 for 1-bedroom listings to $332 for 4-bedrooms — nearly a 3x premium. The jump from 2-bedroom ($181) to 3-bedroom ($273) is particularly notable, suggesting that group-friendly properties command a disproportionate pricing advantage.

Average RevPAN by property size in Custer

Three-bedroom properties deliver the strongest RevPAN at $108, narrowly edging out 4-bedrooms at $105, while 1-bedroom units trail significantly at just $19. This indicates that mid-to-large properties generate far more revenue per available night after factoring in occupancy, making them the most efficient earners.

Average occupancy rates by property size in Custer

Three-bedroom listings lead occupancy at 40%, well above the market average of 26%, while 1-bedroom units lag at just 17%. The pattern suggests that groups and families visiting the Black Hills prefer larger accommodations, giving bigger properties both fuller calendars and more predictable cash flow.

Average monthly revenue by property size in Custer

Four-bedroom properties top the monthly revenue chart at $7,864, followed by 3-bedrooms at $5,691, while 1-bedroom units average only $2,311. The gap between smaller and larger units is substantial, and investors should weigh the higher acquisition cost of larger properties against their significantly stronger monthly income.

Average annual revenue by property size in Custer

Annual revenue ranges from $27,735 for 1-bedroom listings to $94,378 for 4-bedroom properties, with 3-bedrooms delivering $68,302. For investors evaluating return potential, the 4-bedroom segment offers the highest gross revenue, though the 3-bedroom category's superior occupancy and RevPAN make it a compelling alternative with potentially lower acquisition costs.

Most common amenities for Airbnb listings in Custer

Parking (100%) and a kitchen (98%) are table stakes in Custer, reflecting a market of vacation cabins and homes rather than urban apartments. Outdoor amenities dominate the next tier — BBQ grills (82%), patios (78%), outdoor furniture (77%), and backyards (75%) — signaling that guests expect a nature-oriented experience consistent with Black Hills tourism.

Understanding Custer's ROI Score: 65/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Custer's ROI score of 65 out of 100 places it in the "Attractive Opportunity" band, driven primarily by an above-average revenue-to-price ratio and solid occupancy stability — two factors that together account for 70% of the score. Market growth trend also scores above average, though the below-average supply/demand balance (reflecting rapid 92% listing growth) tempers the outlook slightly. Investors should pair these metrics with thorough local regulatory research and a realistic seasonal cash-flow model before committing capital.

Short-Term Rental Regulations in Custer

Understanding local STR regulations is essential before investing in Custer. Here's the current regulatory landscape:

Permit Requirements

The City of Custer and the State of South Dakota may require short-term rental operators to obtain permits or register their properties before listing. Investors should verify current requirements directly with Custer city offices and Pennington County authorities, as local STR regulations in South Dakota communities can vary.

Key Restrictions

Common restrictions that may apply in Custer include occupancy limits, noise ordinances, parking requirements, and minimum stay rules. HOA covenants can also impose additional limitations on short-term rental activity, so prospective buyers should review any applicable CC&Rs before purchasing. Some South Dakota municipalities have begun implementing permit caps or zoning restrictions for vacation rentals.

Tax Obligations

Short-term rental hosts in South Dakota are generally subject to state sales tax and any applicable local tourism or occupancy taxes. Many booking platforms collect and remit these taxes on behalf of hosts, but operators should confirm their obligations with the South Dakota Department of Revenue to ensure full compliance.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Custer can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Custer's short-term rental market is expected to continue benefiting from strong summer tourism tied to Mount Rushmore, Custer State Park, and surrounding Black Hills attractions. Revenue is likely to remain heavily concentrated in June through September, with ADR potentially increasing 2–4% as demand stays firm and the listing base grows. However, year-over-year listing growth of 92% signals rising competition, which may put mild pressure on occupancy rates during shoulder and off-peak months. Investors should plan conservatively for winter cash flow and budget around a heavily seasonal income curve."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Custer, SD

What is the average Airbnb occupancy rate in Custer?

The average occupancy rate for Airbnb listings in Custer is currently 26%, which falls below the South Dakota state average of 43%. Occupancy varies significantly by property size: 3-bedroom units lead at 40%, followed by 4-bedrooms at 32%, 2-bedrooms at 23%, and 1-bedrooms at 17%. The lower overall figure reflects Custer's strong seasonality, with demand heavily concentrated in the summer months and much lower activity in winter.

How much do Airbnb hosts make in Custer?

On average, Airbnb hosts in Custer earn approximately $4,808 per month and $57,696 per year based on trailing 12-month booking data. Earnings vary considerably by property size — 4-bedroom listings average $94,378 annually, while 1-bedroom units average $27,735. Revenue is heavily seasonal, with July being the top-earning month at $12,484 and January the lowest at $622.

Is Custer a good market for Airbnb investment?

Custer earns an ROI score of 65 out of 100, which Rabbu classifies as an 'Attractive Opportunity.' The market benefits from an above-average revenue-to-price ratio and strong occupancy stability, driven by proximity to major Black Hills tourist destinations. The main considerations are intense seasonality — most revenue is earned between May and September — and a rapidly growing supply of listings (92% year-over-year growth). Investors targeting 3- or 4-bedroom properties are best positioned to maximize returns.

What is the average daily rate (ADR) for Airbnb in Custer?

The average daily rate for Airbnb listings in Custer is $241, slightly below the South Dakota state average of $261. ADR scales significantly with property size: 1-bedroom listings average $120 per night, 2-bedrooms average $181, 3-bedrooms average $273, and 4-bedrooms command $332 per night.

Are short-term rentals legal in Custer?

Short-term rentals are generally permitted in Custer, SD, though operators may need to obtain local permits or register their properties. Regulations can vary at the city and county level, so prospective hosts should check with Custer city offices and review any applicable HOA or zoning rules. South Dakota also requires STR operators to comply with state sales tax and any local occupancy tax obligations.

When is peak season for Airbnb in Custer?

Peak season in Custer runs from June through August, coinciding with summer tourism to Mount Rushmore, Custer State Park, and surrounding Black Hills attractions. July is the highest-earning month with average revenue of $12,484 per listing, followed by June at $10,633 and August at $9,270. The shoulder months of May ($5,050) and September ($6,539) also perform well, while winter months from November through February represent the slowest period.

How many Airbnbs are there in Custer?

As of April 2026, there are 60 active Airbnb listings in Custer. The supply is fairly evenly distributed, with 15 one-bedroom listings, 15 two-bedroom listings, 12 three-bedroom listings, and 8 four-bedroom listings. Notably, the market has experienced 92% year-over-year growth in active listings, indicating increasing investor and host interest.

How is Airbnb revenue calculated in Custer?

The annual and monthly revenue figures for Custer are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remainder up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently while naturally reflecting seasonal peaks and slower months, since each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts by market and property size
• Average daily rate, occupancy, and RevPAN metrics with state-level comparisons
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to identify guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages as of April 2026 and may not capture very recent market shifts. Local regulations, HOA rules, and tax obligations vary and should be independently verified before investing.