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Hot Springs

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Hot Springs, SD

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STR Regulations for Hot Springs, South Dakota

Yes—short-term rentals (STRs) are allowed in Hot Springs, South Dakota. There are no city‑specific short‑term rental licensing, registration, or cap ordinances in effect for Hot Springs at the time of this guide. Hosts must follow general city codes and state law, including tax obligations and standard housing/health/safety rules. As in many South Dakota tourism towns, the regulatory environment is evolving; neighboring communities like Hill City, Custer, and Deadwood have adopted more restrictive residential STR rules, but Hot Springs currently has no parallel local STR ordinance. Sources: GoSummer; RedAwning; City of Hot Springs municipal code and ordinances page; South Dakota News Watch article.

Note on other local requirements: While not STR-specific, you must comply with zoning (including any HOA/landlord restrictions), building, fire, health, and safety codes; maintain the property in habitable condition; and observe normal noise/quiet-hour expectations. State law currently prohibits municipalities from banning STRs statewide, but local governments can regulate aspects like zoning, health/safety, nuisance, and parking. Sources: South Dakota News Watch.

How to Start a Short-Term Rental in Hot Springs, SD

  • Decide your STR model and confirm zoning. Determine whether you’ll operate an entire-home rental, a room rental, or a Bed & Breakfast. Confirm with the Building/Development Department that your property’s zoning allows transient lodging and that any HOA/CC&Rs or lease terms permit short-term renting. Sources: City Building/Development/Zoning page.
  • Prepare the property. Meet or exceed habitability standards (safe electrical, gas, smoke/CO detection, emergency egress, sanitation, and reasonable noise/quiet hours). Source: City ordinances and general municipal codes.
  • Obtain required state tax registrations (and any city fees). All lodging providers must register with the South Dakota Department of Revenue to collect and remit state sales and tourism taxes. If your city imposes a municipal sales tax on lodging, you must collect and remit that as well. Sources: GoSummer; SD Dept. of Revenue; SD Department of Tourism.
  • Set up compliance systems. Implement responsible screening and house rules, guest communications, turnovers, parking/trash/noise protocols, and emergency procedures. Display your tax license number if required on receipts and listings.
  • Launch listings and operations. Create your listings on major platforms; clearly state local rules; price dynamically for Hot Springs’ peak seasons (summer and Sturgis Rally) and the quieter winter months. Sources: GoSummer; RedAwning.
  • Monitor municipal updates. Watch the City of Hot Springs Ordinances page for any newly adopted or pending STR-related ordinances. Sources: City Ordinances page.
  • Consider professional management. Local property managers can streamline operations, compliance, and guest experience; typical management fees range from ~15–30% of revenue depending on services. Source: RedAwning.

Required Documents, Permits, Licenses, and Guidelines

  • State-level (required for all lodging providers in South Dakota)
    • Sales Tax License and lodging tax registration with the South Dakota Department of Revenue; remit:
      • 4.5% state sales tax on lodging.
      • 1.5% state tourism tax on lodging.
      • Any applicable municipal sales tax where lodging is taxed (e.g., 2% municipal lodging tax in Hot Springs).
    • Business/insurance considerations (recommended): appropriate liability and property coverage for operating an STR. Sources: GoSummer; SD Dept. of Revenue; SD Department of Tourism.
  • Local—City of Hot Springs (general compliance)
    • Zoning/use verification: confirm transient lodging is an allowed use. Source: City Building/Development/Zoning page.
    • Standard building, fire, health, safety, and nuisance codes: maintain safe conditions and reasonable guest behavior to avoid code enforcement. Source: City ordinances and departments.
    • No STR-specific permit or registration was identified in the provided sources; if you operate a Bed & Breakfast, check for any B&B licensing/requirements in the Municipal Code. Sources: City Municipal Code (see ordinances link).
  • Documentation and records
    • Ownership or lease proof; written rental/House Rules; guest screening criteria; emergency procedures; maintenance logs; and tax remittance records. Sources: standard municipal practice and STR best practice guidance.

Specific Regulations: City, County, and State

  • City of Hot Springs
    • No dedicated STR licensing or cap ordinances identified. Hosts must comply with general municipal codes (zoning, building, fire, health/safety, nuisances, and normal neighborhood expectations). Source: City ordinances page and departments.
    • Zoning: You must verify that transient lodging is a permitted use in your zoning district. Sources: City Building/Development/Zoning page.
  • County (Fall River County)
    • No county-level STR permit or cap is referenced in the provided sources. County general ordinances and health/safety rules may apply; confirm with county offices if operating outside city limits or for any septic/well requirements. Sources: County GIS reference page (mapping context only).
  • State of South Dakota
    • Municipalities cannot outright ban STRs statewide, but they may regulate zoning, health/safety, and nuisances; multiple Black Hills towns (e.g., Hill City) have adopted residential STR restrictions. Source: South Dakota News Watch.
    • Taxes: South Dakota requires collection of:
      • 4.5% state sales tax on lodging.
      • 1.5% state tourism tax on lodging.
      • Any local lodging/municipal sales tax where applicable.
    • Registration: Obtain a Sales Tax License and lodging tax registration through the SD Dept. of Revenue; remit all applicable taxes. Sources: GoSummer; SD Dept. of Revenue; SD Department of Tourism.

Practical implications: Operate responsibly to align with health/safety, zoning, and neighborhood standards. Because STR policy is evolving in tourism towns, Hot Springs investors should stay informed via the City Ordinances page and monitor any Planning & Zoning or City Council activity. Sources: City Ordinances page; South Dakota News Watch.

Contact Information (Local Authority in Charge of STRs and Related Offices)

City of Hot Springs

Building/Development (Planning & Zoning; permits; zoning verification)

Finance (municipal fees and tax information)

County Government (Fall River County)

  • County GIS Map: fallriver.southdakotadirectors.com/
  • Note: Contact the County for zoning/permit context outside city limits; no STR-specific county contacts were provided in the sources. Source: County GIS page.

State Agencies (Taxes)

  • South Dakota Department of Revenue (Sales Tax License, lodging tax registration)
    • Website: dor.sd.gov/
    • Phone: 1-605-773-3311
    • Note: Registration is required for all lodging providers. Sources: SD Dept. of Revenue; GoSummer.
  • South Dakota Department of Tourism (1.5% tourism tax administered with state lodging tax)
    • Website: www.travelsouthdakota.com/
    • Note: Confirm any local tourism or municipal lodging taxes with the Finance Officer or the Dept. of Revenue. Sources: SD Department of Tourism; GoSummer.

Links to Source Pages

Notes and cautions

  • Confirm zoning and any HOA or landlord lease restrictions before converting a property to an STR. Sources: City Zoning page; standard practice.
  • If you operate a Bed & Breakfast, check the Municipal Code for any B&B-specific licensing or standards. Source: City ordinances page.
  • Local/municipal lodging taxes can vary by jurisdiction; while sources indicate Hot Springs’ municipal lodging tax rate and the combined state/local rate as 8%, verify current rates and applicability with the Finance Officer or SD Dept. of Revenue. Sources: GoSummer; SD Dept. of Revenue; City Finance.
  • Because local regulation is evolving, monitor the City Ordinances page for new rules or pending codifications. Source: City Ordinances page.
Hot Springs

Market Saturation Score

036912
Moderate Saturation
5/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Hot Springs Market Analysis →

Photos of Hot Springs

Overview of Hot Springs

Hot Springs (Lakota: mni kȟáta; "hot water") is a city in and county seat of Fall River County, South Dakota, United States. As of the 2020 census, the city population was 3,395. In addition, neighboring Oglala Lakota County contracts the duties of Auditor, Treasurer and Register of Deeds to the Fall River County authority in Hot Springs.

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