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

Hermosa Short-Term Rental Market Overview

Hermosa, SD is a micro-market with just 4 active Airbnb listings, yet it punches well above its weight on a per-property basis. An average daily rate of $385—nearly 48% higher than the South Dakota state average—combined with strong summer demand that pushes monthly revenue past $14,000 in July, gives this small Black Hills-adjacent community notable income potential for the right investor. With an ROI score of 79 out of 100 and above-average revenue-to-price and supply/demand dynamics, Hermosa stands out as a niche opportunity worth a closer look.

Key Market Statistics

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

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

Why Investors Consider Hermosa

Hermosa's combination of a premium ADR well above the state average, extremely limited competition, and favorable supply/demand dynamics makes it a compelling niche market for investors targeting seasonal tourism in the Black Hills region.

Expert Market Assessment

"Hermosa earns a "Standout Opportunity" designation with its ROI score of 79, reflecting above-average revenue-to-price ratios and a favorable supply/demand balance in a market with minimal competition. The seasonal curve is steep—monthly revenue swings from around $700 in January to over $14,000 in July—so investors should plan for meaningful cash-flow variability outside the summer months. Properties that can attract shoulder-season guests through unique amenities or competitive pricing will narrow that gap. Overall, this is a high-upside play for investors comfortable with seasonal concentration and a small, emerging market."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Hermosa

Average revenue by month in Hermosa

Hermosa's revenue seasonality is dramatic: July leads at $14,260, roughly 20 times higher than January's $702, with the May–September corridor generating the bulk of annual income. Investors should budget for lean winter months and consider this a heavily summer-weighted market where five months drive the vast majority of cash flow.

Active Airbnb listings by property size in Hermosa

Property-size breakdowns are not available for this market given the extremely small inventory of just 4 active listings. This limited data makes it difficult to identify which bedroom counts dominate, though it also suggests any well-positioned new listing could capture meaningful market share.

Average daily rate (ADR) by property size in Hermosa

ADR data by property size is unavailable for Hermosa due to the small number of active listings. The overall market ADR of $385 remains well above the state average, indicating that guests in this area are willing to pay a premium regardless of property configuration.

Average RevPAN by property size in Hermosa

RevPAN breakdowns by bedroom count are not reported for this market. The overall RevPAN of $121 reflects the balance between a strong $385 ADR and a 32% occupancy rate, suggesting room to boost per-night yield by improving occupancy during shoulder and off-peak months.

Average occupancy rates by property size in Hermosa

Occupancy data by property size is not available given Hermosa's small listing count. The market-wide 32% occupancy rate trails the 43% South Dakota average, which is consistent with a seasonal tourism market where winter demand is minimal.

Average monthly revenue by property size in Hermosa

Monthly revenue by property size cannot be broken out in this market due to limited inventory data. At the market level, the $5,488 monthly average masks significant seasonal swings that investors should model carefully in their pro formas.

Average annual revenue by property size in Hermosa

Annual revenue by bedroom count is not available for Hermosa. The market-wide average of $65,855 per year provides a useful baseline, though individual properties with premium amenities like hot tubs or generous outdoor spaces could outperform this figure.

Most common amenities for Airbnb listings in Hermosa

Every active listing in Hermosa offers a dryer, kitchen, patio or balcony, and washer—making these table-stakes amenities for any new entrant. Backyard access, BBQ grills, outdoor furniture, parking, and a workspace each appear in 75% of listings, while hot tubs (50%) represent a differentiating amenity that could help capture higher nightly rates and improve occupancy.

Understanding Hermosa's ROI Score: 79/100

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

Hermosa's ROI score of 79 out of 100 places it in the "Standout Opportunity" band, driven primarily by an above-average revenue-to-price ratio and favorable supply/demand balance that rewards early movers in this small market. Occupancy stability scores as average—reflecting the pronounced seasonal swing—while market growth trends are above average, consistent with the sharp increase in listing activity. Investors should pair these encouraging metrics with thorough local regulatory research and realistic seasonal cash-flow modeling before committing capital.

Short-Term Rental Regulations in Hermosa

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

Permit Requirements

Investors considering a short-term rental in Hermosa should verify whether Pennington County or the State of South Dakota requires any permits, registration, or licensing for STR operations. Local zoning ordinances and county-level regulations may apply, so checking directly with municipal and county authorities before purchasing is strongly recommended.

Key Restrictions

Common STR restrictions in small South Dakota communities can include occupancy limits, noise ordinances, parking requirements, and minimum-stay rules. HOA covenants—if applicable to a given property—may impose additional constraints, so investors should review any deed restrictions or community bylaws before committing to a purchase.

Tax Obligations

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

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

Future Outlook & Long-Term Forecast

"Seasonal patterns point to continued strength through the summer travel corridor, driven by proximity to Black Hills attractions like Mount Rushmore and Custer State Park. Over the next 12–18 months, we estimate ADR could hold steady or edge up 2–4% as limited supply keeps pricing power intact, while occupancy may hover in the 30–35% range annually due to pronounced winter softness. Investors who optimize pricing during the May-through-September peak could capture the lion's share of annual revenue during those five months, which historically account for roughly 75% of total earnings."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Hermosa, SD

What is the average Airbnb occupancy rate in Hermosa?

The average Airbnb occupancy rate in Hermosa is currently 32%, which falls below the South Dakota state average of 43%. This reflects the market's strong seasonal nature—demand surges in the summer months and drops significantly in winter. Investors who price strategically during peak season and offer compelling shoulder-season value can help improve their individual occupancy above the market average.

How much do Airbnb hosts make in Hermosa?

Airbnb hosts in Hermosa earn an average of $5,488 per month and approximately $65,855 per year based on trailing 12-month booking data. Revenue is heavily concentrated in the summer, with July averaging around $14,260 and January dipping to roughly $700. These figures represent market-level averages across active listings, so individual results will vary based on property quality, amenities, and pricing strategy.

Is Hermosa a good market for Airbnb investment?

Hermosa scores 79 out of 100 on Rabbu's ROI Score, earning a "Standout Opportunity" rating. The market benefits from above-average revenue-to-price ratios, favorable supply/demand balance, and strong summer tourism demand tied to Black Hills attractions. With only 4 active listings currently, competition is minimal. Investors should be comfortable with seasonal revenue concentration and verify local regulations before purchasing.

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

The average daily rate for Airbnb listings in Hermosa is $385, which is significantly higher than the South Dakota state average of $261. This premium pricing reflects the area's appeal to vacationers visiting nearby Black Hills destinations and the limited supply of short-term rental options in the immediate area.

Are short-term rentals legal in Hermosa?

Short-term rentals are generally permitted in the Hermosa area, though operators should verify specific requirements with Pennington County and the State of South Dakota. Zoning restrictions, permit or registration requirements, and tax obligations may apply. We recommend consulting local authorities and reviewing any HOA or deed restrictions on a prospective property before proceeding with an STR investment.

When is peak season for Airbnb in Hermosa?

Peak season in Hermosa runs from June through August, with July leading the way at an average monthly revenue of approximately $14,260. May and September serve as strong shoulder months, generating around $5,755 and $7,470 respectively. The winter months—November through February—see considerably lower demand, with January averaging just $700 in revenue.

How many Airbnbs are there in Hermosa?

As of April 2026, there are 4 active Airbnb listings in Hermosa. This is a very small market, which means limited competition for hosts but also limited data points for broad analysis. Year-over-year listing growth has been 320%, indicating that investor interest in the area is accelerating rapidly, though the absolute numbers remain quite low.

How is Airbnb revenue calculated in Hermosa?

The annual and monthly revenue figures for Hermosa are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll 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 draws on 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 for the Hermosa market
• Historical occupancy and average daily rate trends based on trailing 12-month data
• Revenue and yield metrics including RevPAN, monthly revenue, and annual revenue
• Average home value data sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to benchmark guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. With only 4 active listings, market-level averages may be more volatile and less representative than in larger markets. Local regulations, zoning rules, and tax obligations can change; investors should verify current requirements with local authorities before purchasing.