What are the key requirements for Sioux Falls hosts?

You must have a local contact person available 24 hours a day to respond to complaints within 45 minutes.

What should Sioux Falls hosts know about state lodging license from the?

State lodging license from the Dept of Health is mandatory BEFORE starting operations.

What should Sioux Falls hosts know about maximum occupancy is strictly enforced?

Maximum occupancy is strictly enforced at 2 people per bedroom plus 2 extra, regardless of bed count.

What should Sioux Falls hosts know about taxes are high: total effective?

Taxes are high: Total effective tax is 8.7% (4.2% state + 2% city + 1% gross receipts + 1.5% tourism).

Sioux Falls

Permissive

STRs Allowed

South DakotaLast updated: February 12, 2026

Baseline Verification

100%

Basic verification complete

Verified: Feb 13, 2026

Summary

Sioux Falls requires short-term rentals to be registered with the city and licensed by the state, with specific safety and occupancy standards defined in the 2024 updated zoning ordinance.

Restriction Level

✅

Permissive

Score: 0 (restrictive)

Why this classification:

•Permit required
•Reporting required
•Safety standards required
•No night cap
•No primary residence requirement
•No STR-specific fee
•Tenants can host

In Plain English

To run an Airbnb in Sioux Falls, you must get a lodging license from the South Dakota Department of Health and register your property with the city. You need a local contact person available 24/7, and you must follow occupancy limits of two people per bedroom plus two additional guests.

At a Glance

Permit Required

Yes

Night Limit

None

Primary Residence

Not Required

Total Tax Rate

0.1%

Permit Fee

Processing Time

1-2 weeks

4 Things Hosts Often Miss

1.You must have a local contact person available 24 hours a day to respond to complaints within 45 minutes.
2.State lodging license from the Dept of Health is mandatory BEFORE starting operations.
3.Maximum occupancy is strictly enforced at 2 people per bedroom plus 2 extra, regardless of bed count.
4.Taxes are high: Total effective tax is 8.7% (4.2% state + 2% city + 1% gross receipts + 1.5% tourism).

Regulation Details

Eligibility(5)

•Sioux Falls: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
•Sioux Falls: You can have a co-host or property manager help manage your listing.
•Sioux Falls does NOT require the property to be a primary residence. Investment properties are allowed.

Requirements(12)

•Sioux Falls: Tenants CAN host STRs but must get written landlord approval first. Keep documentation.
•Sioux Falls: You must have a local contact person available 24 hours a day to respond to complaints within 45 minutes.
•Sioux Falls STR warning: Maximum occupancy is strictly enforced at 2 people per bedroom plus 2 extra, regardless of bed count.

Application Process(8)

•How to set up an STR in Sioux Falls: To run an Airbnb in Sioux Falls, you must get a lodging license from the South Dakota Department of Health and register your property with the city. You need a local contact person available 24/7, and you must follow occupancy limits of two people per bedroom plus two additional guests.

Taxes(3)

•South Dakota has a state sales tax of 0.042% that applies to STR rentals.
•Sioux Falls charges a Lodging and Gross Receipts Tax of 0.045%. This applies to stays under 28 days. Platforms like Airbnb collect and remit this tax. Note: Airbnb and VRBO remit state sales tax and municipal taxes, but owners must still file zero-returns.

Limits & Restrictions(4)

•Sioux Falls limits stays to a maximum of 28 nights.
•Sioux Falls enforces quiet hours: 10pm - 7am.
•Sioux Falls: Maximum occupancy is strictly enforced at 2 people per bedroom plus 2 extra, regardless of bed count.
•Sioux Falls occupancy calculation: 2 per bedroom plus 2 additional persons. Count your bedrooms to determine your max guest limit.

Safety Requirements(1)

•Sioux Falls requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Egress windows in all sleeping rooms, Interconnected smoke alarms, Local 24/7 contact person.

Penalties(2)

•Sioux Falls: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
•Sioux Falls enforces the following penalties for STR violations: First offense: Warning or $100 fine. Second offense: $250 fine. Third offense: $500 fine and registration revocation. Daily fine: $100 per day. Permit may be revoked for violations.

Exemptions(2)

•Sioux Falls: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
•Sioux Falls exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

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Disclaimer

Regulatory information is AI-researched for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Other South Dakota Markets

Spearfish

South Dakota

Permissive

Short-term rentals in Spearfish are not currently regulated by city-specific ordinances, but operators must obtain a mandatory South Dakota state lodging license and register for state and local taxes.

0.1% total tax

Brookings

South Dakota

Moderate

The City of Brookings requires all short-term rentals to obtain an annual permit, comply with specific residential standards, and remit state and local lodging taxes.

Permit required

0.1% total tax

Vermillion

South Dakota

Moderate

Short-term rentals in Vermillion are regulated under the general Rental Housing Code, which requires mandatory registration and biennial inspections for all rental dwellings.

Permit required

0.1% total tax

Pierre

South Dakota

Permissive

Pierre does not have a specialized short-term rental ordinance but requires a state-level lodging license and the collection of several state and local taxes, including a $2.00 per room per night occupancy tax.

0.1% total tax

Sioux Falls

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

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Regulation Details

Eligibility(5)

Requirements(12)

Application Process(8)

Taxes(3)

Limits & Restrictions(4)

Safety Requirements(1)

Penalties(2)

Exemptions(2)

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Step-by-Step Application Guide

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Frequently Asked Questions

Related Content

Other South Dakota Markets

Spearfish

Brookings

Vermillion

Pierre

Sioux Falls

Baseline Verification

Summary

Restriction Level

Why this classification:

In Plain English

At a Glance

4 Things Hosts Often Miss

Step-by-Step Application Guide

Upgrade to Pro

Frequently Asked Questions

1Do I need a permit for short-term rentals in Sioux Falls?

2What is the TOT tax rate in Sioux Falls?

3Are there occupancy limits for Sioux Falls rentals?

4What are the penalties for non-compliance in Sioux Falls?

Related Content

Other South Dakota Markets

Spearfish

Brookings

Vermillion

Pierre