Hill City, SD Airbnb Market Data, Statistics, and Occupancy Rates

Hill City Short-Term Rental Market Overview

Hill City, SD sits at the gateway to the Black Hills and Mount Rushmore corridor, making it a seasonal tourism magnet with outsized summer earning potential. With just 25 active Airbnb listings and an average annual revenue of $47,040, the market remains small but concentrated — and an ROI score of 61 out of 100 signals attractive investment potential. Occupancy stability rates above average for the region, though the sharp seasonal swing from winter lows to summer peaks means investors should plan cash reserves for the quieter months.

Key Market Statistics

According to Rabbu market data, the Hill City 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 Hill City

Investors are drawn to Hill City for its proximity to premier Black Hills attractions, limited existing supply, and strong summer revenue concentration that can deliver meaningful returns despite a short peak season.

Expert Market Assessment

"Hill City presents a moderately attractive opportunity for STR investors who understand and can manage extreme seasonality. The market's revenue profile is heavily front-loaded into the summer months — July alone averages $9,550, while January and February hover near $1,200, creating an 8x spread between peak and trough. That said, the combination of above-average occupancy stability and a constrained supply of just 25 listings suggests demand hasn't outpaced the market's carrying capacity. Investors who pair competitive pricing with standout guest experiences during the June-through-September window can capture the bulk of their annual return in those four months."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Hill City

Average revenue by month in Hill City

Hill City's revenue profile is steeply seasonal — July leads at $9,550, roughly 8x the February low of $1,173. The June-through-September window accounts for the vast majority of annual earnings, making cash-flow planning essential for the six quieter months when monthly revenue often stays below $2,000.

Active Airbnb listings by property size in Hill City

The market's 25 listings are split between 1-bedroom (5 listings) and 4-bedroom (7 listings) properties, with no data reported for 2- or 3-bedroom sizes. This gap could represent an underserved segment — investors considering mid-size properties may face less direct competition.

Average daily rate (ADR) by property size in Hill City

Four-bedroom properties command $253 per night compared to $136 for one-bedroom units, nearly doubling the nightly rate. However, the higher ADR for larger properties needs to be weighed against their significantly lower occupancy when evaluating the true revenue premium.

Average RevPAN by property size in Hill City

One-bedroom listings deliver a notably stronger RevPAN at $45 versus just $22 for 4-bedroom properties, indicating that smaller units convert their lower ADR into better per-night returns through substantially higher occupancy. Investors focused on revenue efficiency per available night may find the 1-bedroom segment more compelling.

Average occupancy rates by property size in Hill City

One-bedroom properties achieve 33% occupancy, far outpacing the 9% rate for 4-bedroom units. The dramatic occupancy gap suggests that smaller, more affordable accommodations attract more consistent bookings, while larger homes likely depend on a narrow peak-season window for the bulk of their stays.

Average monthly revenue by property size in Hill City

Four-bedroom properties edge out 1-bedrooms on gross monthly revenue ($4,482 vs. $3,577), but the margin is relatively slim given the higher purchase and maintenance costs for larger homes. Investors should factor in operating expenses when comparing these two segments.

Average annual revenue by property size in Hill City

At $53,792 annually, 4-bedroom listings generate about 25% more gross revenue than 1-bedroom properties ($42,933). However, given the substantial difference in acquisition costs and operating overhead, 1-bedroom units may offer a more favorable return on investment depending on local property prices.

Most common amenities for Airbnb listings in Hill City

BBQ grills (92%) and parking (88%) dominate the amenity landscape, reflecting guest expectations for outdoor-oriented, self-sufficient vacation stays in the Black Hills. Kitchens (76%) and patios or balconies (72%) round out the top four, while hot tubs and pools — each at 32% — represent potential differentiators for listings looking to stand out from the competition.

Understanding Hill City's ROI Score: 61/100

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

Hill City's ROI score of 61 out of 100 places it in the 'Attractive Opportunity' band, suggesting a worthwhile balance between revenue potential and property costs. The score is buoyed by above-average occupancy stability, while the revenue-to-price ratio and supply/demand balance register as average — and below-average market growth trend tempers the overall rating. Investors should pair these metrics with on-the-ground regulatory research and a realistic seasonal cash-flow model before committing capital.

Short-Term Rental Regulations in Hill City

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

Permit Requirements

Short-term rental operators in Hill City, South Dakota may need to obtain local permits or register with the city before listing a property. Investors should verify current requirements directly with Hill City and Pennington County authorities, as regulations in small tourism-dependent towns can evolve quickly.

Key Restrictions

Common restrictions that may apply include occupancy limits tied to bedroom count, noise ordinances, parking requirements for guests, and potential HOA rules for properties in managed communities. Some jurisdictions in South Dakota also impose minimum-stay requirements or cap the number of STR permits issued in a given area, so confirming these details before purchasing is essential.

Tax Obligations

South Dakota does not levy a state income tax, but short-term rental hosts are typically responsible for state sales tax and any applicable municipal tourism or occupancy taxes. Many booking platforms collect and remit these taxes automatically, though hosts should confirm compliance with both state and local tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Hill City's summer-driven demand cycle is expected to remain the dominant revenue driver, with July and August likely continuing to generate the lion's share of annual income. ADR may see modest pressure given the 190% year-over-year growth in active listings, though the market's tiny base of 25 properties means even a handful of new entrants can skew that figure. Investors should anticipate occupancy in the 20–25% range on an annualized basis, with peak-season months potentially pushing well above that. Revenue estimates suggest steady performance for well-positioned properties, though individual results will depend heavily on pricing strategy and guest experience quality."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Hill City, SD

What is the average Airbnb occupancy rate in Hill City?

The average occupancy rate for Airbnb listings in Hill City is currently 21%, which falls below the South Dakota state average of 43%. This lower annualized figure reflects the market's pronounced seasonality — occupancy surges during summer tourist months and drops significantly in winter. One-bedroom properties tend to perform better on occupancy at 33%, while larger 4-bedroom units average around 9%.

How much do Airbnb hosts make in Hill City?

Based on trailing 12-month booking data, the average Airbnb host in Hill City earns approximately $3,920 per month, or about $47,040 annually. However, monthly earnings vary dramatically by season — July hosts average $9,550 in revenue, while February averages just $1,173. Four-bedroom properties generate higher gross revenue at roughly $53,792 per year compared to $42,933 for one-bedroom units.

Is Hill City a good market for Airbnb investment?

Hill City carries an ROI score of 61 out of 100, which Rabbu classifies as an 'Attractive Opportunity.' The market benefits from above-average occupancy stability and proximity to major Black Hills attractions. Investors should weigh the strong summer revenue potential against elevated home values ($752,375 average) and the seasonal nature of demand. Properties that are well-managed and competitively priced during peak season can perform well, but cash reserves for off-season months are advisable.

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

The current average daily rate in Hill City is $233, slightly below the South Dakota state average of $261. ADR varies significantly by property size: one-bedroom listings average $136 per night, while four-bedroom properties command $253. These rates reflect the tourism-driven nature of the market, where guests are willing to pay a premium for larger group accommodations during peak travel months.

Are short-term rentals legal in Hill City?

Short-term rentals do operate in Hill City, SD, with 25 active Airbnb listings currently in the market. However, local permit requirements and zoning regulations may apply, and these can change over time. Prospective investors should contact Hill City officials and review Pennington County regulations to confirm current licensing, zoning, and tax obligations before purchasing a property for STR use.

When is peak season for Airbnb in Hill City?

Peak season in Hill City runs from June through August, coinciding with summer tourism to Mount Rushmore and the broader Black Hills region. July is the highest-earning month with average revenue of $9,550, followed by August at $8,159 and June at $7,416. Revenue drops sharply after September and remains low from November through March, with the slowest months averaging around $1,200.

How many Airbnbs are there in Hill City?

As of April 2026, there are 25 active Airbnb listings in Hill City. This is a relatively small market, which means less competition but also limited comparable data. The year-over-year growth in active listings is significant at 190%, though this dramatic percentage reflects the small base — even a handful of new listings can produce large percentage swings.

How is Airbnb revenue calculated in Hill City?

The annual and monthly revenue figures for Hill City 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 remaining data up to a market-level historical average. Because each month uses its own historical performance, the figures naturally reflect seasonal peaks and slower periods. Individual results can vary based on property quality, pricing strategy, and how actively the listing is managed.

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 Hill City and surrounding areas
• Occupancy rates, average daily rates, and RevPAN trends by property size
• Monthly and annual revenue averages based on trailing 12-month booking data
• Home value benchmarks sourced from Zillow Home Value Index (ZHVI)
• Popular amenity prevalence across active listings to inform property outfitting decisions

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 performance and market conditions as of the most recent update; actual results may vary based on property quality, management, and local demand shifts. Local regulations, permit requirements, and tax obligations are subject to change — always verify current rules with Hill City and South Dakota authorities before investing.