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

Keystone Short-Term Rental Market Overview

Keystone, South Dakota — the gateway town to Mount Rushmore — operates as a compact but compelling short-term rental market with just 14 active Airbnb listings and an average annual revenue of $53,801. The market's extreme seasonality, with July revenues reaching $10,925 per listing, reflects the powerful draw of summer tourism to the Black Hills. An ROI score of 67 out of 100 positions Keystone as an attractive opportunity, bolstered by above-average occupancy stability and a revenue-to-price ratio that keeps pace with broader benchmarks despite elevated home values averaging $891,674.

Key Market Statistics

According to Rabbu market data, the Keystone 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 Keystone

Keystone's proximity to one of America's most iconic landmarks delivers concentrated seasonal demand that supports premium nightly rates despite limited year-round activity.

Expert Market Assessment

"Keystone presents a moderate-to-strong opportunity for investors comfortable with a highly seasonal revenue profile. Peak months from June through August account for the lion's share of annual income, with July alone generating nearly $10,925 per listing — roughly eight times what a property earns in the slowest winter months. The market's above-average occupancy stability and average revenue-to-price ratio reinforce its attractiveness, but below-average market growth trends and home values near $892,000 mean investors need to pencil in realistic off-season expectations. Properties equipped with the outdoor amenities guests already expect here — grills, patios, hot tubs — are best positioned to capture shoulder-season bookings and push annual revenue toward the upper end of the range."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Keystone

Average revenue by month in Keystone

Keystone's seasonality is dramatic: July peaks at $10,925 in average revenue while February bottoms out at just $1,341, creating nearly an 8x spread between the best and worst months. The core earning window runs from May through September, with June through August alone likely accounting for the majority of annual income — a pattern investors must budget around carefully.

Active Airbnb listings by property size in Keystone

Property-size breakdowns are not available for this market's 14 active listings. With such a small total inventory, investors may find less competition across all bedroom configurations and should evaluate individual properties against market-wide performance metrics.

Average daily rate (ADR) by property size in Keystone

ADR data by property size is not currently available for Keystone. The overall market ADR of $252 provides a baseline, though rates will naturally vary by bedroom count, amenity package, and proximity to Mount Rushmore.

Average RevPAN by property size in Keystone

RevPAN breakdowns by bedroom count are unavailable for this market. The market-wide RevPAN of $86 reflects the combined effect of a $252 ADR and 34% occupancy, suggesting that boosting occupancy — especially in shoulder months — is the clearest lever for improving per-night revenue yield.

Average occupancy rates by property size in Keystone

Occupancy data by property size is not available, but the market-wide rate of 34% sits below South Dakota's 43% average. This gap is largely seasonal, and properties that can attract guests outside the June–August window will see meaningfully better annual occupancy figures.

Average monthly revenue by property size in Keystone

Monthly revenue by bedroom count is not broken out for Keystone. The overall market average of $4,483 per month masks substantial seasonal swings, so investors should focus on peak-month capture when evaluating potential property configurations.

Average annual revenue by property size in Keystone

Annual revenue by property size is unavailable for this micro-market. The market-wide average of $53,801 provides a useful benchmark, but larger or more amenity-rich properties near Mount Rushmore likely outperform this figure during summer months.

Most common amenities for Airbnb listings in Keystone

Kitchens and parking are universal across all 14 listings, while BBQ grills (93%), patios or balconies (86%), and self check-in (86%) are near-standard — signaling that guests expect a well-equipped, self-service experience. Hot tubs appear in 50% of listings and represent a potential differentiator, while pet-friendly policies (29%) and pools (7%) remain uncommon and could help capture niche demand.

Understanding Keystone's ROI Score: 67/100

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

Keystone's ROI score of 67 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average occupancy stability and an average revenue-to-price ratio that keeps returns competitive despite home values near $892,000. The below-average market growth trend warrants attention — rapid supply increases from a tiny base could pressure per-listing revenue if demand doesn't keep pace. 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 Keystone

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

Permit Requirements

Short-term rental operators in Keystone, South Dakota may need to obtain a local business license or STR permit before listing a property. Investors should verify current requirements directly with the City of Keystone and Pennington County, as regulations in small resort communities can evolve quickly.

Key Restrictions

Common restrictions in resort-oriented South Dakota communities include occupancy limits tied to bedroom count, parking requirements to manage traffic in small-town centers, and noise ordinances aimed at preserving neighborhood character. HOA or subdivision covenants may impose additional limitations, including outright bans on short-term rentals, so reviewing property-level deed restrictions is essential before purchasing.

Tax Obligations

South Dakota does not levy a state income tax, but STR hosts are typically responsible for state sales tax and any applicable municipal lodging or tourism taxes. Major booking platforms often collect and remit these taxes automatically, though hosts should confirm compliance with the South Dakota Department of Revenue.

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

Future Outlook & Long-Term Forecast

"With active listings growing 177% year over year, Keystone's supply is expanding quickly from a very small base, which investors should watch carefully for saturation risk in a market this size. Summer demand tied to Mount Rushmore and Crazy Horse Memorial is unlikely to wane, and ADR during peak months could see modest increases of 2–4% as the destination continues attracting domestic travelers. Off-season occupancy — currently pulling the annual average down to 34% — remains the key variable; properties that capture shoulder-season visitors in May, September, and October will outperform. We estimate annual revenue for well-managed listings could hold in the $50,000–$58,000 range over the next 12–18 months, assuming supply growth moderates."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Keystone, SD

What is the average Airbnb occupancy rate in Keystone?

The average Airbnb occupancy rate in Keystone is currently 34%, which falls below the South Dakota state average of 43%. This lower annual figure reflects the market's intense seasonality — summer months see significantly higher occupancy while winter months are considerably quieter. Investors should plan their financial models around this seasonal pattern rather than expecting consistent year-round bookings.

How much do Airbnb hosts make in Keystone?

Airbnb hosts in Keystone earn an average of $4,483 per month and approximately $53,801 per year based on trailing 12-month booking data. However, monthly revenue varies dramatically — from around $1,341 in February to $10,925 in July. Successful hosts maximize revenue during the peak summer season to offset the quieter winter months.

Is Keystone a good market for Airbnb investment?

Keystone earns an ROI score of 67 out of 100, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and steady tourism demand driven by Mount Rushmore. However, average home values of $891,674 and a pronounced seasonal revenue curve mean investors should carefully model cash flow to ensure the peak summer earnings adequately cover year-round holding costs.

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

The average daily rate for Airbnb listings in Keystone is $252, which is slightly below the South Dakota state average of $261. This rate reflects the mix of property types in a small market of just 14 listings. Properties with premium amenities like hot tubs and outdoor living spaces can often command rates above this average, particularly during the busy summer season.

Are short-term rentals legal in Keystone?

Short-term rentals currently operate in Keystone, South Dakota, as evidenced by active listings in the market. However, specific permit requirements, zoning rules, and tax obligations can vary and may change over time. Investors should consult directly with local authorities in Keystone and Pennington County to confirm current regulations and ensure full compliance before listing a property.

When is peak season for Airbnb in Keystone?

Peak season in Keystone runs from June through August, aligning with summer tourism to Mount Rushmore and the broader Black Hills region. July is the single strongest month, with average listing revenue reaching $10,925. The shoulder months of May ($4,774) and September ($6,047) also show meaningful activity, while November through February represents the slowest period with monthly revenue dropping below $1,800.

How many Airbnbs are there in Keystone?

As of April 2026, there are 14 active Airbnb listings in Keystone. This is a very small market by listing count, though the number has grown significantly with 177% year-over-year growth. The limited supply means less direct competition but also signals that the market is still maturing and could see further changes as more investors enter.

How is Airbnb revenue calculated in Keystone?

The annual and monthly revenue figures for Keystone 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, drop regional outliers, and roll the remainder up to a market-level historical average. This anchors the figures to what hosts have actually earned recently rather than to forecasts, while still 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 Keystone market
• Historical occupancy, ADR, and RevPAN trends based on trailing 12-month booking data
• Monthly and annual revenue metrics derived from comparable active listings
• Amenity prevalence data across active short-term rental properties
• Home value estimates sourced from the Zillow Home Value Index (ZHVI)

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. Data reflects trailing 12-month averages and may not capture very recent market shifts or regulatory changes. Individual property results will vary based on location, condition, amenities, pricing strategy, and management quality.