Hot Springs, SD

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Hot Springs short-term rental market based on reliable data.

Listings

53 / 163

Reliable / Active

Cap Rate

7%

Middle-Earners Gross Yield

Revenue

$23,312

Middle-Earners Revenue

Occupancy

55%

Middle-Earners Occupancy

Home Value

$346,265

Median Home Sale Price

Top Earners

$51,846

Top-Earners Revenue

Hot Springs

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Hot Springs.

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A

Very Investor friendly

Hot Springs Regulations

STRs are allowed citywide with no STR‑specific permits or caps, so investors face only basic state tax registration and general health/safety/zoning compliance—simple, inexpensive, and without meaningful caps or hostile enforcement.

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About Hot Springs

Hot Springs is a small city of roughly 3,500 residents tucked into the southwestern corner of South Dakota, in Fall River County along the southern edge of the Black Hills. The town has a quiet, frontier-era feel, with sandstone buildings lining its downtown and a relaxed pace that reflects its history as a turn-of-the-century resort community built around naturally warm mineral springs. Today, it serves as a low-key base for travelers exploring the southern Black Hills and is often described as the southern gateway to the region. The nearest major city is Rapid City, located about 60 miles to the north.

One of the town's most distinctive draws is right in Hot Springs itself: The Mammoth Site, an active paleontological excavation where researchers have uncovered the remains of dozens of Columbian and woolly mammoths that died in a sinkhole tens of thousands of years ago. Visitors can watch scientists work inside an enclosed dig hall and tour a museum built around the bone bed, making it one of the few places in the country where active paleontology is on public display.

A short drive north of town, Wind Cave National Park protects one of the longest and most complex cave systems in the world, known for its rare boxwork rock formations. Above ground, the park covers rolling prairie and ponderosa pine forest inhabited by bison, elk, and pronghorn, and the visitor center is roughly a 20-minute drive from Hot Springs. The park pairs naturally with Crazy Horse Memorial, the mountain carving in progress about 45 miles to the north, and with the broader cluster of Black Hills landmarks further into the hills, including Custer State Park and Mount Rushmore.

South of the city, Angostura State Recreation Area wraps around a reservoir on the Cheyenne River, offering boating, fishing, and lakeside camping within roughly 15 minutes of downtown. Back in town, the warm mineral water that put Hot Springs on the map still defines the visitor experience at Evans Plunge, a spring-fed indoor pool that has been in operation for more than a century.

Hot Springs appeals to short-term rental owners because it sits at a natural crossroads: small enough to feel like a quiet Western town, yet close to a dense cluster of well-known attractions, from a world-class cave system and an active mammoth dig to the mountain carvings, state parks, and scenic drives of the southern Black Hills. That combination of small-town character and proximity to major draws gives the area a steady flow of road-trippers, families, and outdoor travelers throughout much of the year.

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