Custer, SD

  • Overview
  • Performance
  • Listings
  • Buy Box

Key Performance Metrics

Market snapshot

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

Listings

224 / 610

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$37,759

Middle-Earners Revenue

Occupancy

62%

Middle-Earners Occupancy

Home Value

$488,776

Median Home Sale Price

Top Earners

$72,011

Top-Earners Revenue

Custer

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Custer.

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C

Challenging to Investors

Custer Regulations

STRs are allowed but require a Conditional Use Permit with a public hearing, detailed plans, and City Council approval; zoning oversight is strict in residential areas, annual renewals and active enforcement raise compliance risk, and the two‑tier city/county framework adds complexity—all of which deter investment despite no explicit caps.

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About Custer

Custer is a small, characterful city in western South Dakota, serving as the county seat of Custer County. With a population of roughly 1,900 residents, it has the feel of a small mountain town, with a tidy downtown, pine-scented air, and a steady stream of visitors year-round drawn by the surrounding Black Hills scenery. The community functions primarily as a basecamp for travelers exploring nearby natural landmarks, and it sits within easy driving distance of some of the most recognizable sites in the region. Rapid City, the nearest major hub, lies about 30 miles to the northeast, while larger metropolitan areas such as Denver are several hours away by car.

Just south and east of the city lies Custer State Park, one of the largest and most-visited state parks in the United States. Covering more than 70,000 acres of pine-studded hills, granite spires, and open prairie, the park is famous for its free-roaming bison herds, scenic byways such as the Needles Highway and Wildlife Loop Road, and the strikingly clear waters of Sylvan Lake. Entry is only minutes from downtown Custer, making it a daily draw for guests staying in town.

A short drive north of the city brings travelers to two of the most iconic monuments in the American West. Mount Rushmore National Memorial, roughly 25 miles from Custer, features the sixty-foot faces of four U.S. presidents carved into a granite cliffside and draws visitors from around the world. Not far beyond it, the ongoing Crazy Horse Memorial — about 20 miles from Custer — depicts a Lakota warrior on horseback and, when complete, will be the largest mountain carving in the world. Both sites include visitor centers, museums, and evening programs that extend their appeal well beyond a quick photo stop.

To the south and southwest, two of the world's most remarkable cave systems lie within a short drive of town. Wind Cave National Park, roughly 20 minutes south, protects one of the longest and most complex caves on earth and is also home to a large herd of prairie bison. Jewel Cave National Monument, about 45 minutes west of Custer, contains the third-longest cave in the world and offers ranger-led tours through glittering underground chambers. Together, these sites give the Custer area an unusually rich mix of above-ground scenery and below-ground adventure.

With its central Black Hills location, walkable downtown, and proximity to multiple headline destinations, Custer makes a natural base for travelers who want to experience several major attractions without constantly packing up. Guests can return each evening to a quieter, more intimate small-town setting while still being within reach of state parks, national monuments, and cultural landmarks that anchor any trip to the region.

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