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  1. Home
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  3. Regulations
  4. ·
  5. South Dakota
  6. ·
  7. Sioux Falls

Sioux Falls

Permissive
South DakotaUpdated Mar 23, 2026
Gold-standard verification1% sourced

Cross-referenced against 0 official sources — municipal codes, planning-department pages, and government registries.

Verified Feb 13, 2026Sources 0

Summary

Plain-english overview

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

Severity 0
Classification
Permissive
0
Severity

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

What this means for you

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

Key numbers
Permit requiredYes
Night limitNone
Primary residenceNot required
Total tax rate0.1%
Permit fee$0
Processing time1-2 weeks

4 things hosts often miss

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

Regulation details

Sourced from official code
Eligibility5 rules
  • 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.
Requirements12 rules
  • 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 process8 rules
  • 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.
Taxes3 rules
  • 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 & restrictions4 rules
  • 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 requirements1 rule
  • 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.
Penalties2 rules
  • 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.
Exemptions2 rules
  • 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.

How to get permitted

Step-by-step guide for Sioux Falls

0/3
steps completed
Step 1

Obtain South Dakota Sales Tax License

Register with the SD Department of Revenue to collect and remit applicable sales and lodging taxes.

5-7 daysFree
Documents needed
  • SSN or EIN
  • Business Name
Official resource
Step 2

Apply for State Lodging License

Submit an application to the South Dakota Department of Health for a lodging license. This requires a health and safety inspection.

2-4 weeks$150
Documents needed
  • Proof of Insurance
  • Floor plan
  • Sales tax license number
Official resource
Step 3

Register with City of Sioux Falls

Complete the city's STR registration form online to notify the Planning office of your operation.

1-2 weeksFree
Documents needed
  • State Lodging License Number
  • Local 24/7 Contact Name/Phone
  • Occupancy Verification
Official resource

Frequently asked questions

4 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes 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.

Researched & verified by Learn STR at GoStudioM

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