Short-Term Rental Regulations
in Custer County, SD

Airbnb listings are allowed in Custer County, SD, but with restrictions. Custer municipal code authorizes 'hosted' short-term rentals as a permitted conditional use in residential zones only; the owner’s principal structure must be their primary residence, and the owner must be physically present during the rental period. Rentals are limited to 80% of the habitable area, only one hosted STR is allowed per parcel, and accessory dwelling units (ADUs) are prohibited from being used as hosted STRs. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.

Custer municipal code authorizes 'hosted' short-term rentals as a permitted conditional use in residential zones only; the owner’s principal structure must be their primary residence, and the owner must be physically present during the rental period. Rentals are limited to 80% of the habitable area, only one hosted STR is allowed per parcel, and accessory dwelling units (ADUs) are prohibited from being used as hosted STRs.

Yes, a permit is required to operate a short-term rental in Custer County. 1) Submit a Conditional Use Permit (CUP) application to the City Planning Department at least 20 days prior to a Planning Commission meeting, including a site/floor plan, proof of commercial liability insurance, and the application fee. 2) Attend the Planning Commission public hearing (held the 2nd Tuesday of each month) for review and potential imposition of conditions. 3) Ensure compliance with all local, state, and federal lodging requirements.

1) Submit a Conditional Use Permit (CUP) application to the City Planning Department at least 20 days prior to a Planning Commission meeting, including a site/floor plan, proof of commercial liability insurance, and the application fee. 2) Attend the Planning Commission public hearing (held the 2nd Tuesday of each month) for review and potential imposition of conditions. 3) Ensure compliance with all local, state, and federal lodging requirements.

Vrbo is permitted in Custer County, SD under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.

Short-term rental hosts in Custer County are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.

We are not currently tracking any recent short-term rental ordinance changes for Custer County. STR rules change frequently — verify the current requirements with the city or county before listing, using the official source linked on this page.