Sioux Falls, SD Airbnb Market Data, Statistics, and Occupancy Rates

Sioux Falls Short-Term Rental Market Overview

Sioux Falls presents an appealing entry point for short-term rental investors drawn to South Dakota's growing economy and relatively affordable housing stock. With 253 active Airbnb listings, an average daily rate of $160, and trailing-twelve-month annual revenue averaging $21,966, the market offers a workable baseline — though its 31% occupancy rate sits below the state average of 43%, signaling room for improvement through smarter pricing and amenity strategies. The ROI score of 56 out of 100 reflects above-average occupancy stability balanced against a below-average revenue-to-price ratio, making this a market where disciplined operators can outperform.

Key Market Statistics

According to Rabbu market data, the Sioux Falls 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 Sioux Falls

Investors are drawn to Sioux Falls for its combination of above-average occupancy stability, affordable property prices relative to many peer markets, and a diversified demand base spanning business travel, regional events, and family tourism.

Expert Market Assessment

"Sioux Falls earns an "Attractive Opportunity" designation, underpinned by occupancy stability that outperforms many comparable Midwest markets even as the listing count has grown quickly. Seasonality is a meaningful factor here: revenue roughly doubles from winter lows near $1,100–$1,400 to summer highs above $2,500, so investors should budget for slower months. The supply-demand balance and market growth trend both sit at average levels, suggesting the market is neither overheated nor stagnant — a sweet spot for investors willing to optimize pricing and amenities. Larger properties (4–5 bedrooms) punch well above their weight in revenue, potentially offering a path to stronger returns despite the market's modest overall ADR."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Sioux Falls

Average revenue by month in Sioux Falls

Revenue in Sioux Falls follows a clear summer-peak pattern, with August topping out at $2,596 and February marking the low point at $1,115 — a spread of nearly $1,500. Investors should plan for roughly five months (November–March) of below-average revenue, making cash reserves or dynamic pricing essential for year-round profitability.

Active Airbnb listings by property size in Sioux Falls

Two-bedroom properties dominate the supply with 84 listings, followed by 1-bedrooms at 61, while 5-bedroom homes are notably scarce with just 8 listings. The thin supply of larger properties — particularly 5-bedrooms — combined with their outsized revenue potential may represent an underserved niche worth exploring.

Average daily rate (ADR) by property size in Sioux Falls

ADR climbs steadily with property size, from $81 for 1-bedrooms to $295 for 5-bedroom homes, though 4-bedroom listings buck the trend slightly at $214 versus $224 for 3-bedrooms. The strongest per-night premium appears at the 3-bedroom mark, where ADR more than doubles compared to 2-bedroom units, potentially offering the best rate-to-acquisition-cost balance.

Average RevPAN by property size in Sioux Falls

Revenue per available night scales consistently upward from $23 for 1-bedroom units to $87 for 5-bedroom properties, reflecting both higher nightly rates and comparable occupancy levels across sizes. Four-bedroom listings deliver $69 RevPAN — nearly identical to 3-bedrooms at $68 — suggesting the jump to a 4-bedroom may not justify additional acquisition cost unless priced favorably.

Average occupancy rates by property size in Sioux Falls

Occupancy rates are remarkably consistent across property sizes, ranging from 29% for 1-bedrooms to 35% for 2-bedrooms, with all other sizes clustering around 30–32%. This uniformity means revenue differences are driven almost entirely by nightly rates rather than booking frequency, giving larger properties a structural earnings advantage.

Average monthly revenue by property size in Sioux Falls

Monthly revenue increases steadily with size, from $1,073 for 1-bedroom listings to $4,068 for 5-bedroom properties — nearly four times the smallest category. The jump from 3-bedrooms ($2,106) to 4-bedrooms ($2,767) represents a meaningful $661 monthly uplift that investors should weigh against higher operating and acquisition costs.

Average annual revenue by property size in Sioux Falls

Five-bedroom properties lead with $48,819 in average annual revenue, nearly four times the $12,879 generated by 1-bedroom units. For investors focused on maximizing gross income, 4-bedroom ($33,205) and 5-bedroom configurations offer the strongest return potential, though the limited supply of 5-bedroom listings (just 8 active) makes this data point less statistically robust.

Most common amenities for Airbnb listings in Sioux Falls

Parking (98%), kitchen access (96%), and self check-in (93%) are near-universal in Sioux Falls listings, establishing them as baseline guest expectations rather than differentiators. Investors looking to stand out should focus on less common but growing amenities like hot tubs (12%), pet-friendliness (40%), and EV chargers (4%), which can help command premium rates and attract niche travelers.

Understanding Sioux Falls's ROI Score: 56/100

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

Sioux Falls' ROI score of 56 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where healthy occupancy stability (rated above average) helps offset a below-average revenue-to-price ratio driven by home values near $495,000. Market growth and supply-demand balance both register at average levels, suggesting the market is growing at a sustainable pace without signs of oversaturation. Investors should pair these metrics with on-the-ground regulatory research and property-level underwriting to build a complete picture.

Short-Term Rental Regulations in Sioux Falls

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

Permit Requirements

Short-term rental operators in Sioux Falls, South Dakota may need to obtain a permit or register their property with the city before listing. Investors should verify current requirements directly with the City of Sioux Falls and any applicable county or state agencies, as rules can evolve.

Key Restrictions

Common STR restrictions in markets like Sioux Falls can include occupancy limits, minimum night stays, noise ordinances, parking requirements, and HOA-level prohibitions. Property owners should also check for any zoning limitations that might affect whether an STR can operate in their specific neighborhood.

Tax Obligations

Short-term rental hosts in South Dakota are generally subject to state sales tax and any applicable local lodging or tourism taxes. Many booking platforms collect and remit these taxes on the host's behalf, but 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 Sioux Falls can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Sioux Falls is likely to see moderate demand growth as the city's population and regional event calendar continue expanding. Summer months should remain the revenue anchor, with July and August historically generating around $2,500–$2,600 per listing — roughly double what hosts earn during the winter trough. ADR may edge up 2–4% as supply growth (listings jumped 125% year over year) is absorbed by rising traveler interest, though investors should watch occupancy closely to ensure new supply doesn't dilute performance. We estimate market-wide occupancy could stabilize in the low-to-mid 30s if listing growth moderates."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Sioux Falls, SD

What is the average Airbnb occupancy rate in Sioux Falls?

The average occupancy rate for Airbnb listings in Sioux Falls is currently 31%, which falls below the South Dakota state average of 43%. Occupancy varies by property size, with 2-bedroom units performing best at 35% and 1-bedroom units trailing at 29%. Hosts who optimize pricing seasonally and invest in high-demand amenities like workspaces and self check-in can often outperform the market average.

How much do Airbnb hosts make in Sioux Falls?

Based on trailing 12-month data, the average Airbnb host in Sioux Falls earns approximately $1,830 per month or $21,966 per year. Earnings vary significantly by property size — 1-bedroom listings average $12,879 annually, while 5-bedroom properties can pull in roughly $48,819. Peak summer months (July and August) see monthly revenue averaging around $2,593–$2,596, more than double the winter months.

Is Sioux Falls a good market for Airbnb investment?

Sioux Falls scores 56 out of 100 on Rabbu's ROI Score, earning an "Attractive Opportunity" rating. The market benefits from above-average occupancy stability and average growth trends, though the revenue-to-price ratio is below average given home values around $495,213. Investors targeting larger properties (3+ bedrooms) may find stronger returns, as these configurations generate significantly higher annual revenue — up to $48,819 for 5-bedroom homes.

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

The average daily rate in Sioux Falls is $160, which is lower than the South Dakota state average of $261. ADR scales significantly with property size: 1-bedroom listings average $81, 2-bedrooms come in at $112, and 5-bedroom properties command $295 per night. This pricing structure rewards investors who can acquire and manage larger homes.

Are short-term rentals legal in Sioux Falls?

Short-term rentals do operate in Sioux Falls, with 253 active Airbnb listings currently on the market. However, local regulations may require permits, registration, or compliance with zoning rules. Investors should check directly with the City of Sioux Falls and South Dakota state agencies for the most current requirements before listing a property.

When is peak season for Airbnb in Sioux Falls?

Peak season in Sioux Falls runs from May through September, with July and August being the strongest months at average revenues of $2,593 and $2,596 respectively. The shoulder months of May ($2,168) and September ($2,119) also perform well. Winter months from November through March represent the softest period, with February bottoming out at $1,115 in average revenue.

How many Airbnbs are there in Sioux Falls?

There are currently 253 active Airbnb listings in Sioux Falls as of April 2026. The market has seen significant growth, with year-over-year listing counts increasing by 125%. The most common property size is 2 bedrooms (84 listings), followed by 1 bedrooms (61 listings) and 3 bedrooms (50 listings).

How is Airbnb revenue calculated in Sioux Falls?

The annual and monthly revenue figures shown for Sioux Falls 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 remaining data to a market-level historical average. Because each month uses its own historical performance data, the figures naturally reflect seasonal peaks and slower periods. Individual results will vary based on property quality, pricing strategy, location within the market, 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 Sioux Falls market
• Average daily rate, occupancy, and RevPAN metrics based on current and trailing performance
• Monthly and annual revenue figures derived from 12 months of historical booking data
• Property value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Supply distribution and amenity prevalence data across active listings

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. Local regulations, permit requirements, and tax obligations may change; always verify with city and state authorities before investing. Individual property performance will vary based on location, condition, management quality, and pricing strategy.