Hill City, SD

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

Performance indicators for the Hill City short-term rental market based on reliable data.

Listings

149 / 457

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$38,358

Middle-Earners Revenue

Occupancy

59%

Middle-Earners Occupancy

Home Value

$477,766

Median Home Sale Price

Top Earners

$82,916

Top-Earners Revenue

Hill City

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Hill City.

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C

Challenging to Investors

Hill City Regulations

New STRs are prohibited in all residential zones, and only existing, non‑owner‑occupied STRs may continue under the same owner. Legal paths are limited to commercial/industrial zones, bed‑and‑breakfasts, and the Sturgis Rally period, with moderate state permitting and tax compliance—significant restrictions and uncertainty (especially in non‑residential zones) create a challenging environment for investors.

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About Hill City

Hill City sits in the heart of the Black Hills of western South Dakota, in Pennington County, with a population of roughly 1,000 residents. It has a distinct Old West-meets-mountain-village feel, with locally owned restaurants, art galleries, and antique shops clustered along its main street. Widely regarded as a gateway to some of South Dakota's most iconic attractions, particularly Mount Rushmore, the town lies approximately 30 miles southwest of Rapid City, the largest city in the western part of the state.

The most famous nearby draw is Mount Rushmore National Memorial, located about 13 miles northeast of Hill City. The colossal sculpture of four U.S. presidents draws visitors from around the world and provides the central reason many travelers pass through the region each year, especially during the summer season and the annual evening lighting ceremony.

A short drive south of town, Crazy Horse Memorial is being carved into the granite of the Black Hills, honoring the Lakota warrior and serving as a tribute to Native American heritage. The site includes a museum, the Indian Museum of North America, and a cultural center, and it remains an ongoing sculptural project that draws curious visitors year after year.

Travelers can experience the Black Hills the old-fashioned way aboard the 1880 Train, a heritage railroad that runs between Hill City and the nearby town of Keystone. The roughly 20-mile round trip winds through pine-covered hills and past historic mining sites, offering a slower-paced complement to the area's marquee monuments and a popular outing for families.

A bit farther afield, Custer State Park sprawls across the southern Black Hills, within about a 15- to 20-minute drive of Hill City. The park is known for its scenic drives such as the Needles Highway and Iron Mountain Road, as well as for wildlife watching, with free-roaming bison, pronghorn, whitetail deer, and the park's well-known begging burros that frequently approach passing vehicles.

Hill City's central location, walkable downtown, and proximity to several of the most visited destinations in the Black Hills make it a natural base for travelers exploring western South Dakota. Its small-town character offers a quieter and often more affordable alternative to staying directly at the major monuments, while still placing visitors within a short drive of Mount Rushmore, Crazy Horse, and Custer State Park.

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