Is Mount Rushmore, South Dakota Good for Airbnb Investment?

To start an Airbnb near Mount Rushmore in South Dakota, begin by researching local zoning laws and regulations in Pennington County and the specific municipality where your property will be located, as some areas around Mount Rushmore have restrictions on short-term rentals and may require special permits or business licenses. Obtain necessary permits including a South Dakota sales tax license, local business license, and any required short-term rental permits from the city or county, which typically cost between $50-200 annually. Find a suitable property within 10-30 miles of Mount Rushmore, focusing on areas like Keystone, Hill City, or Rapid City, with properties ranging from $200,000-500,000 depending on size and proximity to the monument. Furnish the property with durable, comfortable furniture suitable for tourists, including quality bedding, kitchen essentials, outdoor furniture for viewing the Black Hills, and amenities like WiFi, TV, and air conditioning, budgeting approximately $15,000-25,000 for a complete setup. List your property on Airbnb and other platforms like VRBO, highlighting proximity to Mount Rushmore, Crazy Horse Memorial, and Black Hills attractions, with competitive pricing ranging from $100-300 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, responding promptly to inquiries, coordinating check-ins/check-outs, maintaining the property regularly, and potentially hiring local cleaning services or property management companies like Vacasa or RedAwning that operate in the Black Hills region, while ensuring compliance with South Dakota's 4.5% state sales tax on lodging and any applicable local tourism taxes.

To identify profitable short-term rental properties in the Mount Rushmore area of South Dakota, focus on locations within 10-15 miles of the monument, particularly in Keystone, Hill City, and Rapid City, as these areas capture the highest tourist traffic from the 2.8 million annual visitors. Target properties with 2-4 bedrooms, outdoor spaces like decks or fire pits, parking for multiple vehicles, and rustic or cabin-style features that appeal to families and groups seeking the Black Hills experience. Analyze pricing by researching comparable STRs on Airbnb and VRBO during peak season (June-September) when rates can reach $200-400 per night, compared to $80-150 in off-season, and calculate potential annual revenue against acquisition costs targeting 8-12% cap rates. Research competition density using AirDNA and STRData.co to identify undersupplied areas, noting that properties closer to Crazy Horse Memorial and Custer State Park also command premium rates. Utilize tools like Mashvisor, BiggerPockets calculators, and local MLS data through Realtor.com, while connecting with Black Hills area property managers and tourism boards to understand seasonal demand patterns, local regulations in Pennington County, and emerging attractions that could impact future profitability.

To obtain an Airbnb/STR permit in Mount Rushmore, South Dakota, you must apply through Pennington County since Mount Rushmore area falls under county jurisdiction rather than having its own municipal government. Contact the Pennington County Planning Department at 130 Kansas City Street, Rapid City, SD 57701, or call (605) 394-2169 to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, floor plan of the rental unit, proof of liability insurance (minimum $1 million coverage), fire safety inspection certificate, and septic system inspection if applicable. You'll need to pay an application fee of approximately $150-200 plus an annual licensing fee of around $100-150. The approval timeline is generally 4-6 weeks after submitting a complete application. Specific Mount Rushmore area requirements include compliance with county zoning ordinances, maximum occupancy limits based on septic capacity and square footage, adequate parking spaces (typically 2 per unit), 24/7 local contact person within 30 miles, and adherence to noise ordinances due to the tourist-heavy nature of the area. Properties must also meet all building codes and may require additional inspections for fire safety and health department approval before receiving final permit approval.

Short-term rentals (STRs) are generally legal in the Mount Rushmore area of South Dakota, as the state does not impose blanket restrictions on vacation rentals, though specific regulations vary by jurisdiction. In Pennington County, where Mount Rushmore is located, STRs typically require business licenses and must comply with local zoning ordinances, with some areas restricting rentals in residential zones or requiring conditional use permits. The city of Keystone, the closest municipality to Mount Rushmore, allows STRs but requires registration and adherence to safety codes, parking requirements, and noise ordinances. Properties within the actual Mount Rushmore National Memorial boundaries are federally managed and do not permit private STRs, though nearby private properties can operate as vacation rentals. Recent changes around 2021-2022 have seen some local governments implementing stricter registration requirements and occupancy limits due to increased tourism demand, while maintaining relatively permissive policies compared to other tourist destinations. Property owners should verify current local ordinances as regulations continue to evolve with growing tourism pressure in the Black Hills region.

The best areas for Airbnb investment near Mount Rushmore, South Dakota are Keystone, Hill City, and Custer. Keystone offers the closest proximity to Mount Rushmore National Memorial (just 3 miles away) and attracts millions of annual visitors seeking convenient accommodation near the monument, with peak seasons from May through September generating strong rental demand. Hill City serves as the "Heart of the Hills" and benefits from year-round tourism due to its central location between multiple Black Hills attractions including Crazy Horse Memorial, plus it's the home of the 1880 Train which draws families and history enthusiasts. Custer provides excellent investment potential due to its gateway location to Custer State Park, Wind Cave National Park, and Crazy Horse Memorial, attracting nature lovers, wildlife enthusiasts, and tourists exploring the scenic Needles Highway, while also benefiting from the annual Buffalo Roundup event in September and Gold Discovery Days festival in July that create seasonal booking spikes.

Airbnb properties in the Mount Rushmore area of South Dakota are subject to both state and local lodging taxes. The state of South Dakota imposes a 4.5% state sales tax on short-term rental accommodations, which Airbnb typically collects and remits directly to the South Dakota Department of Revenue on behalf of hosts. Additionally, Pennington County, where Mount Rushmore is located, levies a 2% tourism tax on lodging accommodations, bringing the total tax rate to approximately 6.5%. The city of Keystone, the closest municipality to Mount Rushmore, may impose an additional municipal lodging tax of around 2-3%, potentially raising the total rate to 8.5-9.5% for properties within city limits. Airbnb generally handles the collection and remittance of these taxes automatically through their platform since 2019, deducting the appropriate amounts from guest payments and forwarding them to the respective tax authorities on a monthly basis. Hosts are typically required to register with local tax authorities and may need to file periodic returns even when Airbnb handles collection. Exemptions generally apply to stays exceeding 28 consecutive days, which are considered long-term rentals rather than short-term accommodations, and certain government or non-profit related stays may also qualify for exemptions depending on local regulations.

To start an Airbnb near Mount Rushmore, South Dakota, expect total costs around $285,000-$320,000. Property purchase represents the largest expense at $200,000-$230,000 for a median 3-bedroom home in the Keystone/Hill City area, with properties closer to Mount Rushmore commanding premium prices due to tourist demand. Furnishing costs typically range $15,000-$25,000 for a complete setup including beds, linens, kitchen appliances, living room furniture, and outdoor amenities that appeal to tourists visiting the monument. Initial setup expenses including professional photography, listing creation, welcome materials, and basic renovations add approximately $3,000-$5,000. Permits and fees vary by municipality but generally include business licenses, lodging permits, and tax registrations totaling $500-$1,500, with some areas requiring additional tourism-related permits. Insurance costs run $2,000-$3,500 annually for short-term rental coverage, significantly higher than standard homeowner's insurance due to commercial use and higher liability exposure. Utility setup and deposits for electricity, water, sewer, internet, and cable services cost around $1,000-$2,000 initially, with monthly utilities averaging $200-$400 depending on property size and seasonal usage. First six months operating costs including utilities, cleaning services, maintenance, supplies, platform fees to Airbnb and VRBO, marketing, and property management total approximately $8,000-$12,000, with higher expenses during peak summer tourist season when Mount Rushmore attracts maximum visitors.

Airbnb properties near Mount Rushmore in South Dakota typically generate annual revenues of $15,000-$35,000 for well-positioned properties, with peak summer months (June-August) accounting for 60-70% of total bookings due to the 2.8 million annual visitors to the monument. Operating expenses generally range from $8,000-$18,000 annually, including cleaning fees ($50-80 per turnover), property management (15-25% of revenue), utilities ($150-250/month), insurance ($1,200-2,000/year), and maintenance costs. Profit margins typically fall between 25-45% for successful properties, with higher-end cabins and homes within 10 miles of Mount Rushmore commanding premium rates of $150-300 per night during peak season compared to $80-150 in shoulder months. Success factors include proximity to the monument (properties within Keystone and Hill City perform best), unique amenities like hot tubs or mountain views, professional photography, and responsive host communication. Case studies from 2022-2023 show that a 3-bedroom cabin in Keystone generated $28,000 in revenue with $16,000 in expenses for a 43% profit margin, while properties further than 30 miles from Mount Rushmore typically see 30-40% lower occupancy rates and struggle to achieve profitability without additional attractions like proximity to Custer State Park or Crazy Horse Memorial.

Airbnb investments near Mount Rushmore in South Dakota typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the monument's 2.8 million annual visitors and peak summer tourism season from June through August. Properties within 10 miles of Mount Rushmore, particularly in Keystone and Hill City, command nightly rates of $150-300 during peak season and $80-150 in off-season, with occupancy rates averaging 65-75% annually. Initial investment recovery typically occurs within 6-8 years for properties purchased at $200,000-400,000, with many investors achieving profitability within 18-24 months after accounting for seasonal fluctuations. The market benefits from limited hotel inventory in the immediate area and strong demand from families visiting the Black Hills region, including nearby attractions like Crazy Horse Memorial and Custer State Park, though investors should factor in 4-5 month low seasons and higher property management costs due to the rural location.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in the Mount Rushmore area of South Dakota. Local real estate agents like Black Hills Real Estate Group and Spearfish Realty have experience with vacation rental properties near Mount Rushmore, while Coldwell Banker Lewis-Kirkeby-Hall serves the broader Black Hills region including Keystone and Hill City. National services include AirDNA for market analysis, Mashvisor for property investment analytics, and BiggerPockets for investor networking and deal sourcing. Vacasa and RedAwning provide property management services for Airbnb investors in the area, while local property management companies like Black Hills Property Management assist with vacation rental operations. Real estate investment firms such as Roofstock and Awning focus on turnkey rental properties, and platforms like VRBO and HomeAway offer market insights for the Mount Rushmore tourism corridor. Local mortgage brokers like First Interstate Bank and Great Western Bank provide financing options specifically for investment properties in South Dakota's tourism markets.