Rapid City

As of May 2026, Rapid City, Deadwood, Spearfish, Custer have 3,363 active Airbnb and VRBO listings. This represents a 5% increase from the previous year.

The average Airbnb or VRBO in Rapid City generates $37K per year. High-performing properties earn $63K/year, while low-performing properties earn $16K/year. This significant revenue spread highlights a bifurcated market where top-tier assets capture vastly disproportionate earnings compared to the broader inventory.

Average home prices in Rapid City vary by property size: 1-bedroom properties cost approximately $195K, 2-bedroom homes average $313K, 3-bedroom properties are around $360K, and 4+ bedroom homes average $460K. These prices reflect median home values across the Rapid City, Deadwood, Spearfish, Custer area.

Airbnb and VRBO can be profitable in Rapid City, with an average gross yield of 9% across all properties. High-performing properties achieve yields up to 16%, which is considered top for short-term rental investment. The gap between average and high yields suggests that competitive returns are highly dependent on individual asset performance.

The average occupancy rate for Airbnbs and VRBOs in Rapid City is 32%. This occupancy level, combined with an average nightly rate of $293, results in a RevPAR (revenue per available room) of $70 per day.

1-bedroom properties demonstrate the strongest performance in Rapid City, with an average gross yield of 11% and annual revenue of $22K. These properties balance purchase price ($195K), operating costs, and rental demand most effectively in the Rapid City market.

Short-term rental regulations vary by jurisdiction in the Rapid City area. Rapid City: Lenient. Business license required, zoning compliance needed. Light enforcement, many operate informally. Deadwood: Lenient. Business license needed, gaming city exemptions apply. Minimal enforcement in tourist areas. Spearfish: Lenient. No specific STR regulations beyond general business licensing. Very light enforcement. Custer: Lenient. Basic business license required. Tourism-friendly with minimal oversight or enforcement. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Rapid City Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 5% year-over-year, while RevPAR has decreased 31%. This indicates balanced supply-demand dynamics, though the sharp revenue decline suggests that rising supply is currently outpacing actual guest demand.

Launch around April, 2-3 months before peak summer season (July peaks). This pre-peak timing lets you build reviews when competition is 56% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (November-January) when gaining traction is harder.

The most common amenities in Rapid City listings include: Kitchen (93%), Air Conditioning (91%), Tv (79%), Washing Machine (72%), Heating (59%). Amenities that boost revenue the most include Pool, Hot Tub, Washing Machine, with Pool properties earning approximately 82% more ($93K/year vs $51K/year).

Monthly estimated revenue per listing in Rapid City over the last 12 months: May: $2K, June: $4K, July: $4K, August: $4K, September: $2K, October: $2K, November: $1K, December: $2K, January: $988, February: $1K, March: $2K, April: $1K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Rapid City is $293, up 12% year-over-year. By property size: 1-bedroom properties average $162/night, 2-bedroom properties average $206/night, 3-bedroom properties average $291/night, 4+ bedroom properties average $448/night. Rates peak in August and are lowest in April.

Guests in Rapid City book an average of 40 days in advance, down 19% from last year. By property size: 1-bedroom: 30 days, 2-bedroom: 36 days, 3-bedroom: 41 days, 4+ bedroom: 50 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Rapid City Airbnb and VRBO market has seen: supply grew 5%, revenue per listing decreased 31%, occupancy fell 17%, rates increased 12%, and lead time decreased 19%. These metrics reflect a market facing downward pressure on utilization, forcing hosts to rely on shorter booking windows.

In Rapid City, Friday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 51% higher occupancy than weekdays.