Hot Springs, SD Airbnb Market Data, Statistics, and Occupancy Rates

Hot Springs Short-Term Rental Market Overview

Hot Springs, SD, is a compact short-term rental market with just 27 active Airbnb listings and a pronounced summer peak that pushes average monthly revenue from under $750 in January to nearly $7,000 in July. The market's ROI score of 58 out of 100 reflects an attractive opportunity driven by above-average growth trends and a reasonable revenue-to-price ratio relative to the area's $541,780 average home value. With year-over-year listing growth of 80%, investor interest is clearly rising—though current occupancy sits at 17%, well below the 43% South Dakota state average, signaling that this market rewards strategic seasonal pricing over year-round consistency.

Key Market Statistics

According to Rabbu market data, the Hot Springs 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 Hot Springs

Investors are drawn to Hot Springs for its small-market dynamics where limited supply, proximity to Black Hills tourism, and relatively affordable entry points can translate into meaningful seasonal returns.

Expert Market Assessment

"Hot Springs presents a moderately attractive STR opportunity best suited for investors comfortable with highly seasonal cash flow. The summer months—June through August—account for a disproportionate share of annual revenue, with July alone generating roughly $7,000 on average. Winter months dip sharply, and the 17% overall occupancy rate reflects this uneven demand. Still, the combination of limited competition, above-average growth trends, and a tourism-anchored location creates a niche where well-managed, well-appointed properties can perform meaningfully above market averages."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Hot Springs

Average revenue by month in Hot Springs

Hot Springs displays extreme seasonality: July leads at $6,988 in average revenue—more than nine times the January low of $747. The summer corridor from June through September generates the bulk of annual income, while the November through March period sees modest but not negligible earnings in the $1,000–$2,500 range, suggesting limited but present off-season demand.

Active Airbnb listings by property size in Hot Springs

Supply in Hot Springs is concentrated in 1-bedroom units (11 listings) and 3-bedroom properties (6 listings), with no data reported for 2-bedroom, 4-bedroom, or larger configurations. This gap could represent an opportunity for investors targeting mid-size properties that aren't well-represented in the current inventory.

Average daily rate (ADR) by property size in Hot Springs

ADR scales meaningfully with size: 3-bedroom properties command $250 per night compared to $164 for 1-bedroom units, a 52% premium. Given that the cost differential for acquiring a larger property may be proportionally smaller, 3-bedroom configurations appear to offer a stronger pricing position.

Average RevPAN by property size in Hot Springs

Three-bedroom listings deliver a RevPAN of $40 versus $27 for 1-bedroom units, reflecting their higher nightly rates despite comparable occupancy levels. This nearly 50% RevPAN advantage makes larger properties more efficient revenue generators on a per-available-night basis.

Average occupancy rates by property size in Hot Springs

Occupancy rates are nearly identical across property sizes—17% for 1-bedroom and 16% for 3-bedroom listings—indicating that size alone doesn't drive booking frequency in this market. The uniformly low occupancy reinforces the seasonal nature of demand and suggests that pricing strategy and listing optimization matter more than bedroom count for filling calendars.

Average monthly revenue by property size in Hot Springs

Three-bedroom properties average $2,823 per month compared to $2,334 for 1-bedroom units, a roughly 21% premium. While neither figure is exceptional in absolute terms, the incremental revenue from larger properties adds up meaningfully over a full year.

Average annual revenue by property size in Hot Springs

On an annual basis, 3-bedroom listings generate approximately $33,885 versus $28,017 for 1-bedroom properties—a difference of nearly $6,000. Investors seeking the strongest return potential in Hot Springs should weigh this revenue advantage against the higher acquisition and operating costs of a larger home.

Most common amenities for Airbnb listings in Hot Springs

Self check-in, parking, and a full kitchen each appear in 93% of Hot Springs listings, establishing them as baseline guest expectations rather than differentiators. Outdoor-oriented amenities like backyards (74%), BBQ grills (70%), and outdoor furniture (78%) are also prevalent, reflecting the market's appeal to nature-focused travelers, while pet-friendliness at 41% represents a potential edge for properties that offer it.

Understanding Hot Springs's ROI Score: 58/100

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

Hot Springs earns a 58 out of 100 on Rabbu's ROI Score, landing in the 'Attractive Opportunity' band. The score is supported by an above-average market growth trend and average marks across revenue-to-price ratio, occupancy stability, and supply/demand balance—meaning the fundamentals are sound but not yet standout. Investors should pair this data with on-the-ground regulatory research and a realistic seasonal cash-flow model to determine whether the market's summer-heavy revenue pattern aligns with their investment goals.

Short-Term Rental Regulations in Hot Springs

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

Permit Requirements

Short-term rental operators in Hot Springs, South Dakota, may need to obtain a business license or STR permit before listing a property. Investors should verify current requirements directly with the City of Hot Springs and Fall River County, as local rules can change.

Key Restrictions

Common restrictions in South Dakota communities include occupancy limits per bedroom, minimum stay requirements during certain seasons, noise ordinances, parking mandates, and potential HOA-level prohibitions. Some jurisdictions also impose caps on the total number of STR permits issued, so checking availability early is advisable.

Tax Obligations

South Dakota does not levy a state income tax, but STR operators are typically 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, though operators should confirm their obligations with the South Dakota Department of Revenue.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Hot Springs should continue to benefit from its above-average market growth trend, with new listings entering a market that still has relatively thin supply. Expect summer months (June–August) to remain the revenue engine, likely sustaining ADRs in the $250–$280 range for larger properties, while winter occupancy may stay subdued in the 10–15% range. Investors who price aggressively during shoulder months (May, September, October) and maximize summer capture could see annual revenue estimates in the $30,000–$37,000 band depending on property size and quality. These are estimates, not guarantees, and local tourism patterns around Black Hills attractions will be a key swing factor."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Hot Springs, SD

What is the average Airbnb occupancy rate in Hot Springs?

The average Airbnb occupancy rate in Hot Springs is currently 17%, which is notably below the South Dakota state average of 43%. This lower figure reflects the market's heavy seasonality—summer months see significantly higher booking activity, while winter months are quite slow. Investors should plan their pricing and expense management around this seasonal cycle.

How much do Airbnb hosts make in Hot Springs?

Based on trailing 12-month data, Airbnb hosts in Hot Springs earn an average of $3,078 per month, or approximately $36,940 per year. Revenue varies considerably by season, ranging from around $747 in January to nearly $6,988 in July. Larger properties (3 bedrooms) tend to outperform, averaging about $33,885 annually compared to $28,017 for 1-bedroom units.

Is Hot Springs a good market for Airbnb investment?

Hot Springs carries a Rabbu ROI Score of 58 out of 100, placing it in the 'Attractive Opportunity' category. The market benefits from above-average growth trends and a manageable revenue-to-price ratio, though investors should be prepared for pronounced seasonality and lower occupancy outside the summer peak. Properties that maximize summer revenue and manage costs during the off-season stand to do well.

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

The average daily rate in Hot Springs is $247, which is slightly below the South Dakota state average of $261. ADR varies by property size—1-bedroom listings average $164 per night, while 3-bedroom properties command around $250. These rates tend to peak during the busy summer tourism season.

Are short-term rentals legal in Hot Springs?

Short-term rentals operate in Hot Springs, SD, with 27 active listings currently on the market. However, local permitting requirements and regulations may apply. Investors should consult the City of Hot Springs and Fall River County for the most current rules on STR licensing, zoning, and any applicable restrictions before purchasing a property.

When is peak season for Airbnb in Hot Springs?

Peak season in Hot Springs runs from June through August, driven by summer tourism to the Black Hills region. July is the top-earning month at roughly $6,988 in average revenue, followed by August at $5,566 and June at $4,987. The shoulder months of May and September also see moderate activity, while January through March represent the slowest period.

How many Airbnbs are there in Hot Springs?

As of April 2026, there are 27 active Airbnb listings in Hot Springs. The market has seen significant growth, with an 80% year-over-year increase in active listings. The supply is concentrated in 1-bedroom units (11 listings) and 3-bedroom properties (6 listings), leaving potential gaps in other bedroom configurations.

How is Airbnb revenue calculated in Hot Springs?

The annual and monthly revenue figures for Hot Springs 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 remaining data 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 because 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 for the Hot Springs market
• Historical occupancy rates and average daily rate trends by property size
• Monthly and annual revenue metrics derived from trailing 12-month booking data
• Home value estimates 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 Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots; market conditions, regulations, and property-level factors can cause individual results to vary significantly. Local STR regulations may change; investors should verify all permit, zoning, and tax requirements with the appropriate authorities before purchasing.