Big Stone City, South Dakota Short Term Rental Regulations Guide for Airbnb hosts

IMPORTANT DISCLAIMER: Based on the provided content analysis, I was unable to locate specific short-term rental (STR) regulations for Big Stone City, SD. The provided documents contain Pennington County zoning regulations that may apply to unincorporated areas, but do not contain city-specific ordinances for Big Stone City. This guide reflects the available county-level information and general South Dakota context.

Overview: Short-Term Rental Status in Big Stone City, SD

STRs are likely allowed in Big Stone City, SD, but specific regulations depend on zoning classifications and may require permits. The available information shows that Pennington County (where Big Stone City is located) has established a regulatory framework for "Vacation Home Rentals" (VHRs), which is the local term for short-term rentals.

What do Airbnb hosts actually earn in Big Stone City?

Big Stone City hosts earn a median $31,640/year with $251 ADR and 54% occupancy.

Top performers pull in $38,389+ per year.

See the full Big Stone City market breakdown

How to Start a Short-Term Rental Business in This Market

Based on Pennington County regulations, the process for establishing a short-term rental business involves:

1. Zoning Compliance Verification

Determine your property's zoning district
Verify that short-term rentals are permitted in that zone (allowed-by-right or as conditional use)
Check minimum lot requirements for your zoning district

2. Vacation Home Rental Registration

If operating as a VHR as defined by Pennington County regulations, you must register with the Planning Department
The VHR definition includes: "A dwelling that is rented, leased, or furnished in its entirety to the public on a daily or weekly basis for more than 14 days in a calendar year and is not occupied by an owner or manager during the time of rental"

3. Permitting Process

Apply for any required building permits
Obtain conditional use permits if VHR is not allowed-by-right in your zoning district
Comply with septic system requirements if applicable

Required Documents, Permits, Licenses, and Guidelines

Essential Documents:

Property Ownership Documentation
Building Permit (if significant modifications are planned)
Vacation Home Rental Registration (VHR Registration)
Conditional Use Permit (if required by zoning)
Septic System Compliance Certificate (if applicable)
Fire Mitigation Plan (if in fire protection district)

Key Guidelines from Pennington County:

VHRs are defined as rentals exceeding 14 days per calendar year
Must not be occupied by owner/manager during rental period
Bed and breakfast establishments are specifically excluded from VHR regulations
Must comply with residential zoning requirements
Property must meet minimum lot size requirements for the zoning district

Specific Regulations (County and State Level)

Pennington County VHR Regulations:

Section 319 - Vacation Home Rental (Referenced but full text not provided in available content)

Key Zoning Districts where STRs may be permitted:

LDR (Low Density Residential): 1 acre minimum, 35 ft max height
SRD-1 (Suburban Residential-1): 6,500 sq ft minimum, 35 ft max height
SRD-2 (Suburban Residential-2): 6,000 sq ft minimum, 35 ft max height
C (Commercial): May allow STRs with commercial zoning requirements

Septic System Requirements:

General requirement: 20,000 sq ft minimum lot size for on-site septic systems
Private well properties: 43,560 sq ft minimum lot size required
Central water and sewer: 6,500 sq ft minimum lot size
All septic systems must comply with Section 331 regulations

General Building Standards:

Must meet residential construction standards
Maximum height varies by zoning district (typically 35 ft)
Setback requirements apply based on zoning district
One principal structure per lot (with exceptions for commercial zones)

Bed and Breakfast Regulations:

Specifically regulated separately from VHRs under Section 323
Different regulatory framework than short-term rentals
Must comply with SDCL 34-18-9.1(1) requirements

Contact Information

Pennington County Planning Department

Address: 130 Kansas City Street, Suite 200, Rapid City, SD 57701
Phone: (605) 394-2186
Website: planning.pennco.org

For Big Stone City-Specific Regulations:

Note: Big Stone City likely has its own municipal ordinances separate from county regulations. Contact the city directly:

Big Stone City, SD (Estimated - please verify)
Phone: (605) [Number not available in provided content]
Email: [Email not available in provided content]
Website: [Website not available in provided content]

Important Limitations and Next Steps

Data Limitations:

No city-specific regulations found in the provided content for Big Stone City
Section 319 details not complete - full VHR regulations may have additional requirements
Missing municipal contact information for Big Stone City

Recommended Action Steps:

Contact Big Stone City directly for city-specific STR regulations
Consult with Pennington County Planning Department for county requirements in unincorporated areas
Verify current zoning of your target property
Review complete Section 319 of Pennington County Zoning Ordinance for detailed VHR requirements
Check for additional permits required by state health department or other agencies

Source Documents Referenced:

Pennington County Zoning Ordinance (Revised October 22, 2025)
Specific sections: §150 (VHR Definition), §319 (Vacation Home Rental), §331 (On-site Wastewater Treatment)

Final Note: This guide provides foundational information based on available county-level regulations. For comprehensive compliance, investors should consult directly with both Big Stone City officials and Pennington County Planning Department to obtain the most current and complete regulatory requirements.

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Ask the AI Advisor about Big Stone City

Big Stone City is a tiny community in Grant County, in the northeastern corner of South Dakota, sitting just a few miles from the Minnesota state line. With a population of roughly 450 residents, the town has the quiet, unhurried character typical of small prairie-border communities, and its identity is shaped almost entirely by its proximity to the water and rolling countryside that surrounds it. Big Stone City is best known as a gateway to Big Stone Lake and the surrounding lake country, and it serves as a peaceful stop for travelers exploring the upper Minnesota River valley. The nearest major city is Sioux Falls, roughly three hours to the south, while Watertown lies about 45 miles to the west and offers the closest full range of urban services, shopping, and an airport.

The defining natural feature of the area is Big Stone Lake, a long, narrow lake that straddles the South Dakota–Minnesota border and is one of the larger natural lakes in the region. The lake is popular for fishing — especially walleye, northern pike, and smallmouth bass — as well as boating, kayaking, and ice fishing in the winter. Because the city sits right at its southern end, visitors staying in Big Stone City can be on the water within minutes, and the lakeshore road provides scenic access to several public landings and picnic spots along the way.

Just north and west of the city lies the Big Stone National Wildlife Refuge, a protected expanse of wetlands, grasslands, and shallow water habitat that draws birdwatchers, wildlife photographers, and hunters. The refuge is part of the larger wetland complex along the Minnesota River and hosts migratory waterfowl, herons, and prairie species throughout the year. It is roughly a fifteen-minute drive from town and offers a quiet, uncrowded alternative to busier Midwestern wildlife destinations.

A short drive east across the state line brings visitors to Hartford Beach State Park on the Minnesota side of the lake, which is well known for its sandy swimming beach, shaded campground, and a historic stone lodge built by the Civilian Conservation Corps. About twenty minutes from Big Stone City, the park makes an easy day trip and adds another layer of outdoor appeal to the area, especially for families traveling with children.

For travelers seeking a calm, nature-focused base, Big Stone City offers an appealing combination of small-town quiet, immediate access to a major lake, and proximity to several well-regarded natural areas in both South Dakota and Minnesota. Its position along the lake and near the wildlife refuge, combined with the slower pace of the upper prairie, makes it a natural fit for short-term rentals aimed at anglers, hunters, birders, and anyone looking to unplug for a few days along the South Dakota–Minnesota border.