Sioux Falls

As of June 2026, Sioux Falls has 530 active Airbnb and VRBO listings. This represents a 4% decrease from the previous year.

The average Airbnb or VRBO in Sioux Falls generates $27K per year. High-performing properties earn $43K/year, while low-performing properties earn $9K/year. The substantial $34K gap between top and bottom earners suggests that revenue outcomes are heavily bifurcated, reflecting a market where listing quality and strategic positioning significantly dictate financial returns despite a broader contraction in total revenue.

Average home prices in Sioux Falls vary by property size: 1-bedroom properties cost approximately $144K, 2-bedroom homes average $265K, 3-bedroom properties are around $323K, and 4+ bedroom homes average $388K. These prices reflect median home values across the Sioux Falls area.

Airbnb and VRBO can be profitable in Sioux Falls, with an average gross yield of 8% across all properties. High-performing properties achieve yields up to 13%, which is considered top for short-term rental investment. This yield spread indicates that while the market average remains modest, top-tier assets successfully capture premium value despite the current trend of declining revenue per listing.

The average occupancy rate for Airbnbs and VRBOs in Sioux Falls is 39%. This occupancy level, combined with an average nightly rate of $174, results in a RevPAR (revenue per available room) of $49 per day.

4+ bedroom properties demonstrate the strongest performance in Sioux Falls, with an average gross yield of 12% and annual revenue of $44K. These properties balance purchase price ($388K), operating costs, and rental demand most effectively in the Sioux Falls market.

Short-term rental regulations vary by jurisdiction in the Sioux Falls area. Sioux Falls: Lenient. No city-specific STR regulations or permit requirements. Must comply with general business licensing and state lodging tax collection. Zoning rules apply but enforcement is minimal. Most hosts operate freely without significant oversight or restrictions. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Sioux Falls Airbnb and VRBO market is currently showing balanced conditions. Supply has declined 4% year-over-year, while RevPAR has decreased 24%. This indicates balanced supply-demand dynamics. The simultaneous contraction in both inventory and per-unit earnings suggests a market reset where demand is softening at a rate that currently outpaces the exit of competing rental supply.

Launch around May, 2-3 months before peak summer season (August peaks). This pre-peak timing lets you build reviews when competition is -26% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (December-January) when gaining traction is harder.

The most common amenities in Sioux Falls listings include: Air Conditioning (99%), Kitchen (98%), Tv (90%), Washing Machine (88%), Heating (74%). Amenities that boost revenue the most include Washing Machine, Bicycles, Bbq, with Washing Machine properties earning approximately 36% more ($36K/year vs $26K/year).

Monthly estimated revenue per listing in Sioux Falls over the last 12 months: May: $2K, June: $2K, July: $2K, August: $2K, September: $2K, October: $2K, November: $2K, December: $1K, January: $890, February: $841, March: $1K, 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 Sioux Falls is $174, up 17% year-over-year. By property size: 1-bedroom properties average $102/night, 2-bedroom properties average $135/night, 3-bedroom properties average $193/night, 4+ bedroom properties average $279/night. Rates peak in July and are lowest in February.

Guests in Sioux Falls book an average of 30 days in advance, down 17% from last year. By property size: 1-bedroom: 27 days, 2-bedroom: 28 days, 3-bedroom: 26 days, 4+ bedroom: 39 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Sioux Falls Airbnb and VRBO market has seen the following changes: supply declined 4%, revenue per listing decreased 24%, occupancy fell 13%, average nightly rates increased 17%, and lead time decreased 17%. These metrics highlight a shift toward shorter booking windows and higher price points, pointing to a more reactive, opportunistic guest behavior in an environment of tightening occupancy.

In Sioux Falls, Saturday sees the highest booking demand while Monday has the lowest. Nightly rates peak on Friday and are lowest on Tuesday. Weekends show 69% higher occupancy than weekdays.