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Sioux Falls, SD Short-Term Rentals: Short-Term Rental Permits (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Short-term rental permit rules in Sioux Falls, SD, also called Airbnb permits, vacation rental licenses, or STR registration, list the application steps, fees, and operating requirements for hosting.

Key Facts

Permit fee
$50 (since July 1, 2024)
Owner course
2 hours, city-approved
Extra licenses
State sales tax + lodging license
Change notice
30 days to update application

Summary

Sioux Falls requires every short-term rental to hold a city residential rental permit before it can be advertised or occupied, with a $50 fee.

No residential rental property owner shall allow to be occupied, advertise for occupancy, solicit occupants of, or let to another person for occupancy any residential rental unit within the city that has not been permitted as residential rental unit by the city. All owners of a residential rental unit shall have filed a permit application for the physical address of each building with the city. ... The fee for the permit shall be $50 beginning on July 1, 2024.

Source: Sioux Falls §159.303 Vacation Home Rental/STRView official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: 2026 S-135: Current through local ordinance 54-26, passed 7-14-2026).

Full Breakdown

The city treats a short-term rental unit as a category of residential rental unit, so owners must file a permit application with the city for the physical address before advertising, soliciting occupants, or letting the property. The application discloses owner and contact information, unit counts, and any recent health, nuisance, or code violation history. The permit costs $50 (waived for new construction prior to first tenant occupancy), and the owner must complete a two-hour approved course unless the property is managed by a state-licensed broker, broker associate, property manager, or rental agent. Short-term rental applicants must also show proof of a state sales tax license (or that a third party remits it) and a state health department lodging license under SDCL 34-18.

Violations & Fines

Operating, advertising, or leasing an unpermitted unit is subject to the general penalty under § 10.999; permits can also be suspended after two health, nuisance, or code violations with fines in the prior year.

Frequently Asked Questions

Does a short-term rental in Sioux Falls need a permit?
Yes. It's regulated as a residential rental unit and must be permitted with the city before it can be advertised or occupied, per § 150.177.
What licenses does a Sioux Falls short-term rental owner need besides the city permit?
Proof of a state sales tax license (or third-party remittance) and a state health department lodging license under SDCL 34-18, per § 150.177(f).

Sources & Official References

Other rules in Sioux Falls

All Sioux Falls rules

How Sioux Falls compares: Most Airbnb-Friendly Cities in America·Compare Sioux Falls to another location·View the South Dakota short-term rentals overview

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