Rapid City, MI Airbnb Market Data, Statistics, and Occupancy Rates

Rapid City Short-Term Rental Market Overview

Rapid City, MI is a compact lakeside market with just 12 active Airbnb listings, offering investors an early-mover advantage in a low-competition environment. With an average annual revenue of $75,762 and an ADR of $587—well above the $350 Michigan state average—properties here command premium nightly rates driven by seasonal vacation demand. The market's ROI score of 64 out of 100 signals an attractive opportunity, though the pronounced summer seasonality and relatively low 17% average occupancy rate mean investors should plan for significant revenue swings throughout the year.

Key Market Statistics

According to Rabbu market data, the Rapid City 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 Rapid City

Investors are drawn to Rapid City for its premium nightly rates, limited supply, and strong lakefront vacation appeal that generates outsized summer revenue relative to property counts.

Expert Market Assessment

"Rapid City presents a moderate-to-attractive opportunity for STR investors who are comfortable with seasonal cash-flow patterns. Revenue is heavily concentrated in the summer months—August alone generates nearly $16,038 on average per listing—while winter months like March dip to roughly $1,141, creating a spread that demands careful budgeting. The above-average occupancy stability and favorable supply/demand balance noted in the ROI factors suggest that demand, while seasonal, remains reliable relative to the small number of listings. Investors targeting four-bedroom properties will find the strongest return profile, but should pair this data with on-the-ground regulatory research given the market's rapid 150% year-over-year growth in listings."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Rapid City

Average revenue by month in Rapid City

Rapid City's revenue is sharply seasonal, peaking in August at $16,038 and bottoming in March at just $1,141—a nearly 14x spread that underscores how critical the summer months are for annual returns. The high season from June through September accounts for the vast majority of earnings, with meaningful shoulder revenue in May ($5,531) and October ($5,957).

Active Airbnb listings by property size in Rapid City

The market's 12 listings are concentrated entirely in three-bedroom (6 listings) and four-bedroom (5 listings) configurations, with no smaller units represented. This narrow supply profile could signal opportunity for investors considering studio, one-, or two-bedroom offerings, though the lakefront vacation market may inherently favor larger group-sized properties.

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

ADR is remarkably similar across property sizes, with three-bedroom units at $538 and four-bedroom properties at $522—suggesting that the extra bedroom doesn't command a rate premium in this market. The value for investors in larger properties comes instead from higher occupancy and total revenue rather than per-night pricing.

Average RevPAN by property size in Rapid City

Four-bedroom properties deliver a RevPAN of $150 compared to just $43 for three-bedroom units, a 3.5x difference that makes the larger configuration substantially more productive per available night. This gap is driven primarily by the significant occupancy advantage four-bedroom properties hold in this market.

Average occupancy rates by property size in Rapid City

Four-bedroom properties achieve a 29% occupancy rate—more than three times the 8% seen for three-bedroom listings—indicating much stronger booking demand for the larger configuration. Investors considering three-bedroom properties should be aware that the low occupancy could make consistent cash flow challenging, particularly during off-peak months.

Average monthly revenue by property size in Rapid City

Four-bedroom properties lead with $6,691 in average monthly revenue, outpacing three-bedroom units at $5,282 by roughly 27%. The gap is driven almost entirely by occupancy differences rather than rate, making the larger format the more reliable monthly earner.

Average annual revenue by property size in Rapid City

At $80,295 per year, four-bedroom properties generate about $17,000 more annually than three-bedroom listings ($63,393), representing the strongest return configuration in this market. For investors weighing acquisition costs against income potential, the four-bedroom format offers the clearest path to maximizing revenue in Rapid City.

Most common amenities for Airbnb listings in Rapid City

Every listing in the market offers a BBQ grill, washer, dryer, self check-in, kitchen, and outdoor furniture—making these baseline expectations rather than differentiators. Waterfront access (50%) and lake access (50%) are notable competitive advantages, while hot tubs (25%) remain relatively uncommon and could serve as a meaningful way to stand out and command higher rates.

Understanding Rapid City's ROI Score: 64/100

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

Rapid City's ROI score of 64 out of 100 places it in the Attractive Opportunity band, driven by above-average occupancy stability and a favorable supply/demand balance that reflect reliable seasonal demand against a very small inventory of just 12 listings. The revenue-to-price ratio scores as average, consistent with higher home values ($900,662) that require meaningful summer revenue to justify, while market growth trends rate below average—worth monitoring as listing counts have surged 150% year-over-year. Investors should pair these metrics with thorough local regulatory research to ensure the opportunity aligns with their risk tolerance and return expectations.

Short-Term Rental Regulations in Rapid City

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

Permit Requirements

Short-term rental operators in Rapid City, Michigan may need to obtain a local permit or register their property with the township or county before listing. Investors should verify current requirements directly with Rapid City and Kalkaska County officials, as small Michigan communities can update STR rules with limited notice.

Key Restrictions

Common restrictions in Michigan STR markets can include occupancy limits based on bedroom count, minimum stay requirements, noise and quiet-hour ordinances, and designated parking rules. HOA or deed restrictions may also apply in lakefront communities, so investors should review any applicable covenants before purchasing a property intended for short-term rental use.

Tax Obligations

Michigan imposes a 6% state use tax on short-term rentals, and local jurisdictions may levy additional accommodations or tourism taxes. Major booking platforms typically collect and remit state taxes on behalf of hosts, but investors should confirm local tax obligations with a qualified advisor.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Rapid City's short-term rental market is likely to remain heavily summer-driven, with peak monthly revenues concentrated in July and August. Given that active listings have grown 150% year-over-year, supply is expanding quickly from a small base, which could moderate ADR growth unless demand keeps pace. Investors should anticipate occupancy rates in the range of 15–20% on an annualized basis, with summer months pulling significantly higher, and plan their pricing strategies to maximize revenue during the roughly five-month high season from May through September. ADR increases of 1–3% are plausible if the area's lakefront appeal continues attracting vacationers, though individual results will depend heavily on property positioning and amenities."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Rapid City, MI

What is the average Airbnb occupancy rate in Rapid City?

The average Airbnb occupancy rate in Rapid City, MI is currently 17%, which falls below the 42% Michigan state average. This reflects the market's strong seasonal orientation—occupancy surges during the summer months when lake tourism peaks and drops considerably in the off-season. Four-bedroom properties perform meaningfully better at 29% occupancy compared to 8% for three-bedroom units.

How much do Airbnb hosts make in Rapid City?

Airbnb hosts in Rapid City earn an average of $6,313 per month and approximately $75,762 per year based on trailing 12-month booking data. Revenue varies significantly by season, with August averaging around $16,038 per listing and March dropping to about $1,141. Four-bedroom properties tend to outperform, generating roughly $80,295 annually compared to $63,393 for three-bedroom listings.

Is Rapid City a good market for Airbnb investment?

Rapid City earns a Rabbu ROI Score of 64 out of 100, rated as an Attractive Opportunity. The market benefits from premium nightly rates ($587 ADR), above-average occupancy stability, and a favorable supply/demand balance with only 12 active listings. However, average home values sit at $900,662 and occupancy is heavily seasonal, so investors should model cash flows carefully and ensure the summer revenue peak can support year-round carrying costs.

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

The average daily rate for Airbnb listings in Rapid City is $587, which is significantly higher than the $350 Michigan state average. Three-bedroom properties average $538 per night while four-bedroom properties come in at $522. The premium ADR reflects the vacation and lakefront nature of the market, where guests are willing to pay more for unique getaway experiences.

Are short-term rentals legal in Rapid City?

Short-term rentals can operate in Rapid City, MI, but specific permit or registration requirements may apply at the local or county level. Regulations in small Michigan communities can change, so prospective investors should contact Rapid City and Kalkaska County officials directly to confirm current rules, zoning restrictions, and any licensing requirements before purchasing a property.

When is peak season for Airbnb in Rapid City?

Peak season in Rapid City runs from June through September, with July and August being the strongest months. Average monthly revenue hits approximately $15,920 in July and $16,038 in August—more than seven times the off-season lows seen in March ($1,141). The shoulder months of May and October also perform well relative to winter, making the active earning window roughly five to six months long.

How many Airbnbs are there in Rapid City?

There are currently 12 active Airbnb listings in Rapid City, MI as of April 2026. The market has seen significant growth with a 150% year-over-year increase in listings. Supply is split between three-bedroom (6 listings) and four-bedroom (5 listings) properties, making this a very small and concentrated market where new entrants can meaningfully impact overall dynamics.

How is Airbnb revenue calculated in Rapid City?

The annual and monthly revenue figures for Rapid 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. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently and naturally reflects 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 for Rapid City, MI
• Average daily rate, occupancy, and RevPAN trends by property size
• Monthly and annual revenue estimates based on trailing 12-month booking performance
• Popular amenity prevalence across active listings in the market
• Home value data 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.