Short-Term Rental Opportunity in Brookings
Brookings’s event calendar creates concentrated short-term rental demand that no hotel supply can fully absorb. SDSU Jackrabbits home football games, graduation weekends (May), Hobo Day (October — SDSU’s homecoming, the largest in the nation), and the state 4-H and FFA events bring thousands of visitors to a city with fewer than 1,000 hotel rooms. For savvy property owners, this creates a compelling Airbnb / VRBO opportunity.
Brookings Short-Term Rental Revenue Potential
- Regular weekends (off-peak): $80 – $130/night for a 2BR home
- SDSU football weekends: $200 – $400/night (homes within 2 miles of campus)
- Hobo Day weekend: $300 – $600/night (2-3 night minimum typical)
- Graduation weekend (May): $250 – $500/night
- State fair and ag events: $150 – $300/night
A well-located Brookings property with active STR management can generate $15,000–$30,000/year in gross revenue, with peak events accounting for 40–60% of annual income.
Brookings City Regulations for Short-Term Rentals
As of 2025, Brookings has implemented a short-term rental registration requirement. Property owners operating STRs in Brookings must register with the city, pay the applicable municipal business license fee, collect and remit Brookings municipal accommodations tax (in addition to SD’s 4.5% sales tax and 1.5% tourism tax), and maintain liability insurance. Failure to register can result in fines and forced closure. Verify current regulations at the Brookings City Finance Office before listing.
South Dakota Short-Term Rental Tax Obligations
- South Dakota sales tax: 4.5% of gross receipts
- SD tourism tax: 1.5% of gross receipts
- Brookings municipal gross receipts tax: Verify current rate with city
- Federal income tax: STR income reported on Schedule E (if personal use <15 days/year) or Schedule C (if more business-like)
- Airbnb/VRBO tax remittance: These platforms now collect and remit SD state taxes automatically, but municipal taxes may still require owner remittance
Setting Up a Successful Brookings STR
Location Matters Most
Properties within 1–2 miles of the SDSU campus command significantly higher event-weekend rates. Proximity to the Jackrabbits’ Dana J. Dykhouse Stadium (football) is particularly valuable. Downtown Brookings properties benefit from year-round walkability appeal.
Photography and Listing Quality
Professional photography increases Airbnb booking rates by 24% (Airbnb’s own data). In a college town, amenities that matter most: fast WiFi, parking (critical for Brookings events), flexible check-in/check-out, and a well-equipped kitchen. List these features prominently.
Pricing Strategy
Use dynamic pricing tools (PriceLabs, Wheelhouse, or AirDNA’s SmartRates) to automatically raise rates for SDSU event weekends. Manual price management leaves significant money on the table during peak demand periods.
Long-Term vs. Short-Term Rental: Which Is Better in Brookings?
Annual gross revenue comparison for a typical Brookings 3BR property:
- Long-term rental: $1,200/month × 12 = $14,400/year (stable, low management)
- Short-term rental (active management): $18,000 – $28,000/year gross (higher management cost, higher risk, higher reward)
The STR premium is real but requires active management, furnishing investment ($8,000–$15,000 for a quality setup), and regulatory compliance. Hybrid strategies (long-term lease with STR during key SDSU events) are technically complex but may be the optimal approach for risk-averse landlords.
