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

Rapid City Short-Term Rental Market Overview

Rapid City earns an ROI score of 68 out of 100, reflecting attractive short-term rental potential driven by above-average occupancy stability and reasonable revenue relative to property values. With 242 active Airbnb listings generating an average annual revenue of $39,391, the market benefits from intense summer tourism — likely fueled by proximity to Mount Rushmore and the Black Hills — that creates a pronounced seasonal revenue curve. Average home values sit at $556,225, and while the 34% occupancy rate trails the South Dakota state average of 43%, the market's sharp summer peaks offer meaningful upside for investors who price and manage strategically.

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 Mar, 17 2026.

Why Investors Consider Rapid City

Investors are drawn to Rapid City for its seasonal tourism-driven revenue spikes, above-average occupancy stability, and the opportunity to capture strong summer returns in a market where property costs remain accessible compared to many resort destinations.

Expert Market Assessment

"Rapid City presents an appealing seasonal opportunity with a clear revenue window from May through September, when monthly earnings surge from roughly $3,500 to nearly $8,000. The off-season tells a different story — January and February dip below $1,000 — so investors should model for a heavily front-loaded annual income. A score of 68/100 places this market in attractive territory, supported by solid occupancy stability and a balanced supply-demand dynamic. Larger properties deliver the strongest returns, but even mid-size units can perform well if operators optimize pricing during the busy summer months."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Rapid City

Average revenue by month in Rapid City

Rapid City's revenue curve is steeply seasonal, with July peaking at $7,998 and winter months like January ($996) and February ($982) representing the trough — an 8x spread between the best and worst months. The core earning window from June through September accounts for the lion's share of annual income, making cash-flow planning essential for off-peak periods.

Active Airbnb listings by property size in Rapid City

Supply is relatively balanced across property sizes, with 1-bedroom (62) and 2-bedroom (59) units slightly leading, followed by 3-bedroom (51) and 4-bedroom (46) listings. The 5-bedroom segment has just 19 listings, which may represent a supply gap worth exploring given the strong revenue those properties generate.

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

ADR climbs steadily from $110 for 1-bedroom units to $281 for 5-bedroom properties, with the biggest jump occurring between 3-bedroom ($186) and 4-bedroom ($264) listings. This $78 per-night premium suggests that families and larger groups are willing to pay significantly more for extra space, making mid-to-large properties particularly compelling.

Average RevPAN by property size in Rapid City

Four-bedroom listings deliver the strongest RevPAN at $88, outpacing even 5-bedroom units ($77) despite lower nightly rates, thanks to slightly better occupancy. One-bedroom properties lag at $35 per available night, confirming that larger configurations convert their rate premiums into meaningfully higher per-night yields.

Average occupancy rates by property size in Rapid City

Occupancy rates cluster tightly between 28% and 36%, with 2-bedroom units filling most consistently at 36% and 5-bedroom properties trailing at 28%. The narrow spread suggests that property size is less of a factor in occupancy than seasonal demand patterns, though the 2-bedroom segment's edge offers slightly more cash-flow predictability.

Average monthly revenue by property size in Rapid City

Monthly revenue scales predictably with size, from $1,835 for 1-bedroom listings to $5,230 for 5-bedroom properties. The jump from 3-bedroom ($3,450) to 4-bedroom ($4,860) is the most significant in dollar terms, reinforcing the value of targeting larger units for maximum revenue.

Average annual revenue by property size in Rapid City

Five-bedroom properties top the annual revenue chart at $62,762, while 4-bedroom units aren't far behind at $58,326 — both well above the market-wide average of $39,391. One-bedroom listings at $22,028 may suit investors with lower acquisition costs, but the strongest return potential clearly lies in properties with 3 or more bedrooms.

Most common amenities for Airbnb listings in Rapid City

Parking (96%) and a full kitchen (94%) are near-universal, reflecting guest expectations for road-trip-friendly accommodations in the Black Hills region. Outdoor amenities like patios (69%), BBQ grills (64%), and backyards (61%) are common differentiators, while hot tubs (15%) and pools (3%) remain rare — potentially offering standout appeal for listings that include them.

Understanding Rapid City's ROI Score: 68/100

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 68 out of 100 places it in the 'Attractive Opportunity' band, driven primarily by above-average occupancy stability and average marks for revenue-to-price ratio, market growth, and supply/demand balance. The score reflects a market where seasonal demand is dependable and property values haven't yet priced out favorable returns, though the heavily seasonal revenue pattern means investors should stress-test their projections for winter months. Pairing this data with local regulatory research and a thorough property-level analysis will give you the clearest picture of actual return potential.

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

Rapid City, South Dakota may require short-term rental operators to obtain a permit or register their property before listing on platforms like Airbnb. Investors should verify current permit requirements directly with the City of Rapid City's planning or licensing department before acquiring a property.

Key Restrictions

Common restrictions in STR-friendly markets include occupancy limits tied to bedroom count, minimum stay requirements, noise ordinances, and designated parking rules. HOA or neighborhood covenants may impose additional limitations, so investors should review any applicable deed restrictions or association bylaws before purchasing.

Tax Obligations

Short-term rental hosts in South Dakota are generally subject to state sales tax and may owe local lodging or tourism taxes. Many booking platforms collect and remit some of these taxes automatically, but hosts should confirm their full obligation with the South Dakota Department of Revenue and local tax authorities.

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, we expect Rapid City's STR market to follow its established seasonal cadence, with peak-month revenues (June through August) likely holding steady or seeing modest ADR gains of 1–3% as tourism demand remains resilient. The 137% year-over-year growth in active listings signals rising investor interest, which could put mild downward pressure on occupancy if supply outpaces demand. Off-season months (November through February) will likely continue to produce sub-$1,000 averages, so investors should plan cash reserves accordingly. Overall, the market's fundamentals point to stable but seasonal performance rather than explosive growth."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Rapid City, SD

What is the average Airbnb occupancy rate in Rapid City?

The average occupancy rate for Airbnb listings in Rapid City is currently 34%, which falls below the South Dakota state average of 43%. Occupancy varies by property size, with 2-bedroom units leading at 36% and 5-bedroom properties trailing at 28%. Because Rapid City is a highly seasonal market driven by summer tourism, annual occupancy figures naturally reflect quieter winter months pulling the average down.

How much do Airbnb hosts make in Rapid City?

On average, Airbnb hosts in Rapid City earn approximately $3,282 per month and $39,391 per year based on trailing 12-month booking data. Revenue varies significantly by property size — 1-bedroom units average around $22,028 annually, while 5-bedroom properties can bring in roughly $62,762. Summer months are where the bulk of income is generated, with July alone averaging nearly $8,000.

Is Rapid City a good market for Airbnb investment?

Rapid City scores 68 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' tier. The market benefits from above-average occupancy stability and a healthy revenue-to-price ratio, making it a compelling option for investors comfortable with seasonal income patterns. Larger properties in particular offer strong annual revenue relative to acquisition costs, though investors should budget for lean winter months.

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

The current average daily rate in Rapid City is $177, compared to the South Dakota state average of $261. ADR scales meaningfully with property size: 1-bedroom listings average $110 per night, while 4- and 5-bedroom properties command $264 and $281 respectively. This pricing structure rewards investors who target larger homes that can accommodate families and groups visiting the area.

Are short-term rentals legal in Rapid City?

Short-term rentals operate in Rapid City, as evidenced by 242 active Airbnb listings in the market. However, local regulations, permit requirements, and zoning restrictions can change, so prospective hosts should verify the current rules with the City of Rapid City and review any applicable HOA or neighborhood covenants before listing a property.

When is peak season for Airbnb in Rapid City?

Peak season in Rapid City runs from June through August, with July being the highest-earning month at an average of $7,998 in revenue. June ($6,211) and August ($6,831) are also strong performers. The shoulder months of May and September still generate solid income ($3,494 and $4,425 respectively), while winter months from November through February see averages drop below $1,300.

How many Airbnbs are there in Rapid City?

As of April 2026, there are 242 active Airbnb listings in Rapid City. Supply is distributed fairly evenly across property sizes, with 1-bedroom listings (62) and 2-bedroom listings (59) being the most common, followed by 3-bedroom (51), 4-bedroom (46), and 5-bedroom (19) properties. Year-over-year listing growth of 137% indicates significant new supply entering the market.

How is Airbnb revenue calculated in Rapid City?

The annual and monthly revenue figures shown 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 aggregate the results into 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 you manage your listing.

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 by market and property size
• Average daily rates, occupancy rates, and RevPAN metrics across bedroom configurations
• Monthly and annual revenue trends based on trailing 12-month historical booking data
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data for active listings to inform competitive positioning

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 may not capture very recent market shifts or regulatory changes. Local STR regulations vary and can change; investors should verify current rules with municipal authorities before purchasing.