Sioux Falls, SD Accessory Structures: ADU Rental Restrictions (2026)

Under Sioux Falls' Shape Places Zoning Ordinance (Title 16 Article 15.20), an ADU may be rented as long-term housing — defined as a tenancy of more than 28-30 days — without any city registration, license, or rental inspection program. The South Dakota Codified Laws Chapter 43-32 (Lease of Real Property — Residential) governs tenancies, including: security deposits capped at one month's rent unless special conditions exist (SDCL 43-32-6.1); 30-day notice for month-to-month termination by either party (SDCL 43-32-13); written lease required for tenancies of one year or longer (statute of frauds, SDCL 53-8-2); habitability obligations on the landlord; and eviction through Forcible Entry and Detainer (FED) actions in magistrate or circuit court under SDCL Chapter 21-16. South Dakota is not a rent-control state and SDCL preempts municipal rent regulation. Short-term vacation rental use (renting to the public on a daily or weekly basis for more than 14 days per calendar year while the unit is not owner/manager occupied) requires the §159.303 permit: $50 fee, contact information posted inside and outside the property, and registration with the South Dakota Department of Revenue for state sales tax (4.2 percent) and tourism tax (1.5 percent on lodging). Source-of-income discrimination: South Dakota does not have statewide protection for Section 8 voucher holders, and Sioux Falls has not added local protection — landlords may decline voucher tenants. Fair housing: the federal Fair Housing Act and SDCL Chapter 20-13 (South Dakota Human Relations Act) prohibit discrimination based on race, color, religion, sex, familial status, national origin, ancestry, and disability.