Watertown Airbnb Market Analysis 2025: Short Term Rental Data & Vacation Rental Statistics in South Dakota, United States
Is Airbnb profitable in Watertown in 2025? Explore comprehensive Airbnb analytics for Watertown, South Dakota, United States to uncover income potential. This 2025 STR market report for Watertown, based on AirROI data from April 2024 to March 2025, reveals key trends in the niche market of 25 active listings.
Whether you're considering an Airbnb investment in Watertown, optimizing your existing vacation rental, or exploring rental arbitrage opportunities, understanding the Watertown Airbnb data is crucial. Leveraging the low regulation environment is key to maximizing your short term rental income potential. Let's dive into the specifics.
Key Watertown Airbnb Performance Metrics Overview
Monthly Airbnb Revenue Variations & Income Potential in Watertown (2025)
Understanding the monthly revenue variations for Airbnb listings in Watertown is key to maximizing your short term rental income potential. Seasonality significantly impacts earnings. Our analysis, based on data from the past 12 months, shows that the peak revenue month for STRs in Watertown is typically August, while January often presents the lowest earnings, highlighting opportunities for strategic pricing adjustments during shoulder and low seasons. Explore the typical Airbnb income in Watertown across different performance tiers:
- Best-in-class properties (Top 10%) achieve $5,970+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $3,704 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $2,006 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $1,150, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Watertown
Watertown Airbnb Occupancy Rate Trends (2025)
Maximize your bookings by understanding the Watertown STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Augustsees the highest demand (peak season occupancy), while January experiences the lowest (low season). Effective strategies, like adjusting minimum stays or offering promotions, can boost occupancy during slower periods. Here's how different property tiers perform in Watertown:
- Best-in-class properties (Top 10%) achieve 76%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 61% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 42%.
- Entry-level properties (Bottom 25%) average 24% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Watertown
Average Daily Rate (ADR) Airbnb Trends in Watertown (2025)
Effective short term rental pricing strategy in Watertown involves understanding monthly ADR fluctuations. The Average Daily Rate (ADR) for Airbnb in Watertown typically peaks in December and dips lowest during October. Leveraging Airbnb dynamic pricing tools or strategies based on this seasonality can significantly boost revenue. Here's a look at the typical nightly rates achieved:
- Best-in-class properties (Top 10%) command rates of $343+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $216 or more.
- Typical properties (Median) charge around $107 per night.
- Entry-level properties (Bottom 25%) earn around $70 per night.
Average Daily Rate (ADR) Trend by Month in Watertown
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Airbnb Seasonality Analysis & Trends in Watertown (2025)
Peak Season (August, July, May)
- Revenue averages $4,097 per month
- Occupancy rates average 55.8%
- Daily rates average $160
Shoulder Season
- Revenue averages $2,859 per month
- Occupancy maintains around 40.9%
- Daily rates hold near $157
Low Season (January, February, March)
- Revenue drops to average $1,981 per month
- Occupancy decreases to average 37.2%
- Daily rates adjust to average $162
Seasonality Insights for Watertown
- The Airbnb seasonality in Watertown shows highly seasonal trends requiring careful strategy. While the sections above show seasonal averages, it's also insightful to look at the extremes:
- During the high season, the absolute peak month showcases Watertown's highest earning potential, with monthly revenues capable of climbing to $4,196, occupancy reaching a high of 62.6%, and ADRs peaking at $169.
- Conversely, the slowest single month of the year, typically falling within the low season, marks the market's lowest point. In this month, revenue might dip to $1,871, occupancy could drop to 29.5%, and ADRs may adjust down to $150.
- Understanding both the seasonal averages and these monthly peaks and troughs in revenue, occupancy, and ADR is crucial for maximizing your Airbnb profit potential in Watertown.
Seasonal Strategies for Maximizing Profit
- Peak Season: Maximize revenue through premium pricing and potentially longer minimum stays. Ensure high availability.
- Low Season: Offer competitive pricing, special promotions (e.g., extended stay discounts), and flexible cancellation policies. Target off-season travelers like remote workers or budget-conscious guests.
- Shoulder Seasons: Implement dynamic pricing that balances peak and low rates. Target weekend travelers or specific events. Offer slightly more flexible terms than peak season.
- Regularly analyze your own performance against these Watertown seasonality benchmarks and adjust your pricing and availability strategy accordingly.
Best Areas for Airbnb Investment in Watertown (2025)
Exploring the top neighborhoods for short-term rentals in Watertown? This section highlights key areas, outlining why they are attractive for hosts and guests, along with notable local attractions. Consider these locations based on your target guest profile and investment strategy.
| Neighborhood / Area | Why Host Here? (Target Guests & Appeal) | Key Attractions & Landmarks |
|---|---|---|
| Downtown Watertown | The heart of the city with access to local businesses, restaurants, and festivities. High potential for attracting tourists during events and the holiday season. | Redlin Art Center, Watertown Mall, Codington County Heritage Museum, Brent’s Family Restaurant, Lake Kampeska |
| Lake Kampeska | Scenic area known for recreation and outdoor activities, popular with families and nature enthusiasts seeking lakefront relaxation. | Lake Kampeska, Watertown Municipal Utilities, Fishing and water sports, Camping areas, Parks and trails |
| Pelican Lake | A popular vacation spot for boating and fishing, offering a serene environment ideal for summer getaways and seasonal rentals. | Pelican Lake, Camping areas, Boat ramps, Fishing spots, Wildlife viewing |
| Historic Downtown District | Rich in history with charming architecture and local boutiques, it offers a unique experience for visitors wanting to explore the culture of Watertown. | Historic architecture, Local shops and cafes, Annual festivals, Art galleries, Theater events |
| Watertown Regional Airport Area | Convenient for travelers flying in and out of the region, perfect for short-term stays for business travelers and visitors. | Watertown Regional Airport, Nearby hotels and services, Business centers, Accessibility to main highways, Dining options |
| City Park | A picturesque area perfect for family gatherings and events, ideal for hosting visitors looking for a relaxing stay. | City Park, Playgrounds, Walking trails, Seasonal events, Picnic areas |
| Brentford | A small town nearby ideal for tranquil getaways, offering a closer experience with nature and community life. | Outdoor recreation, Community events, Local farms, Quiet and peaceful environment, Fishing spots |
| Terrace Park | A residential neighborhood that is close to schools and amenities, popular with families and individuals looking for a quieter stay. | Terrace Park, Community centers, Play areas, Local sports facilities, Accessibility to downtown |
Understanding Airbnb License Requirements & STR Laws in Watertown (2025)
While Watertown, South Dakota, United States currently shows low STR regulations, specific Airbnb license requirements might still exist or change. Always verify the latest short term rental regulations and Airbnb license requirements directly with local government authorities for Watertown to ensure full compliance before hosting.
(Source: AirROI data, 2025, finding no licensed listings among those analyzed)
Top Performing Airbnb Properties in Watertown (2025)
Benchmark your potential! Explore examples of top-performing Airbnb properties in Watertownbased on Trailing Twelve Month (TTM) revenue. Analyze their characteristics, revenue, occupancy rate, and ADR to understand what drives success in this market.
Luxury Lakefront Condo w/ Private Hot Tub & Sauna
Entire Place • 4 bedrooms
The Hangar-1/2 House 1/2 ManCave
Entire Place • 5 bedrooms
Lakefront House - Full Remodel!
Entire Place • 2 bedrooms
Kampeska Lakefront Cottage
Entire Place • 2 bedrooms
Waterfront Watertown Condo w/ Patio & Pool Access!
Entire Place • 4 bedrooms
Pet-Friendly Watertown Home ~ 1 Mi to Downtown!
Entire Place • 2 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Top Performing Airbnb Hosts in Watertown (2025)
Learn from the best! This table showcases top-performing Airbnb hosts in Watertown based on the number of properties managed and estimated total revenue over the past year. Analyze their scale and performance metrics.
| Host Name | Properties | Grossing Revenue | Stay Reviews | Avg Rating |
|---|---|---|---|---|
| Evolve | 3 | $156,643 | 44 | 4.83/5.0 |
| Pamela | 1 | $58,037 | 23 | 4.91/5.0 |
| William | 4 | $45,552 | 142 | 4.97/5.0 |
| Nichole | 1 | $41,171 | 8 | 5.00/5.0 |
| Alli | 1 | $38,415 | 99 | 4.97/5.0 |
| Host #1399994 | 1 | $32,339 | 1 | 0.00/5.0 |
| Ellen | 1 | $27,862 | 29 | 4.72/5.0 |
| Christopher | 1 | $26,385 | 217 | 4.94/5.0 |
| Tina | 1 | $18,061 | 51 | 5.00/5.0 |
| Kay | 1 | $18,038 | 114 | 4.74/5.0 |
Analyzing the strategies of top hosts, such as their property selection, pricing, and guest communication, can offer valuable lessons for optimizing your own Airbnb operations in Watertown.
Dive Deeper: Advanced Watertown STR Market Data (2025)
Ready to unlock more insights? AirROI provides access to advanced metrics and comprehensive Airbnb data for Watertown. Explore detailed analytics beyond this report to refine your investment strategy, optimize pricing, and maximize your vacation rental profits.
Explore Advanced MetricsWatertown Short-Term Rental Market Composition (2025): Property & Room Types
Room Type Distribution
Property Type Distribution
Market Composition Insights for Watertown
- The Watertown Airbnb market composition is heavily skewed towards Entire Home/Apt listings, which make up 76% of the 25 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Watertown, House properties are the most common (44%), reflecting the local real estate landscape.
- Houses represent a significant 44% portion, catering likely to families or larger groups.
Watertown Airbnb Room Capacity Analysis (2025): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Watertown
- The dominant room capacity in Watertown is 2 bedrooms listings, making up 28% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 2 bedrooms and 1 bedroom properties represent 52.0% of the active Airbnb listings in Watertown, indicating a high concentration in these sizes.
- A significant 32.0% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Watertown.
Watertown Vacation Rental Guest Capacity Trends (2025)
Distribution of Listings by Guest Capacity
Guest Capacity Insights for Watertown
- The most common guest capacity trend in Watertown vacation rentals is listings accommodating 8+ guests (24%). This suggests the primary traveler segment is likely larger groups.
- Properties designed for 8+ guests and 4 guests dominate the Watertown STR market, accounting for 48.0% of listings.
- 32.0% of properties accommodate 6+ guests, serving the market segment for larger families or group travel in Watertown.
- On average, properties in Watertown are equipped to host 4.2 guests.
Watertown Airbnb Booking Patterns (2025): Available vs. Booked Days
Available Days Distribution
Booked Days Distribution
Booking Pattern Insights for Watertown
- The most common availability pattern in Watertown falls within the 271-366 days range, representing 48% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 76.0% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 91-180 days range is most frequent in Watertown (28%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 24.0% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
Watertown Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
4 listings
18.2% of total
2 Nights
11 listings
50% of total
3 Nights
4 listings
18.2% of total
4-6 Nights
1 listings
4.5% of total
30+ Nights
2 listings
9.1% of total
Key Insights
- The most prevalent minimum stay requirement in Watertown is 2 Nights, adopted by 50% of listings. This highlights the market's preference for shorter, flexible bookings.
- A strong majority (68.2%) of the Watertown Airbnb data shows acceptance of very short stays (1-2 nights), indicating a dynamic, high-turnover market.
Recommendations
- Align with the market by considering a 2 Nights minimum stay, as 50% of Watertown hosts use this setting.
- If feasible, allowing 1-night stays, especially midweek or during low season, could capture last-minute bookings, as only 18.2% currently do.
- A 2-night minimum appears standard (50%). Consider this for weekends or peak periods.
- Explore offering discounts for stays of 30+ nights to attract the 9.1% of the market seeking extended stays.
- Adjust minimum nights based on seasonality – potentially shorter during low season and longer during peak demand periods in Watertown.
Watertown Airbnb Cancellation Policy Trends Analysis (2025)
Flexible
9 listings
42.9% of total
Moderate
2 listings
9.5% of total
Firm
4 listings
19% of total
Strict
6 listings
28.6% of total
Cancellation Policy Insights for Watertown
- The prevailing Airbnb cancellation policy trend in Watertown is Flexible, used by 42.9% of listings.
- There's a relatively balanced mix between guest-friendly (52.4%) and stricter (47.6%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Flexible policy to align with the 42.9% market standard in Watertown.
- Regularly review your cancellation policy against competitors and market demand shifts in Watertown.
Watertown STR Booking Lead Time Analysis (2025)
Average Booking Lead Time by Month
Booking Lead Time Insights for Watertown
- The overall average booking lead time for vacation rentals in Watertown is 35 days.
- Guests book furthest in advance for stays during October (average 81 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in April (average 11 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (62 days avg.) sees the longest lead times, while Winter (26 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (35 days) as a baseline for your pricing and availability strategy in Watertown.
- For October stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 81 days out to capitalize on advance planning.
- During April, focus on last-minute booking availability and promotions, as guests book with very short notice (11 days avg.).
- Target marketing efforts for the Summer season well in advance (at least 62 days) to capture early planners.
- Monitor your own booking lead times against these Watertown averages to identify opportunities for dynamic pricing adjustments.
Popular & Essential Airbnb Amenities in Watertown (2025)
Amenity Prevalence
Amenity Insights for Watertown
- Essential amenities in Watertown that guests expect include: Wifi, Smoke alarm, TV, Heating. Lacking these (any) could significantly impact bookings.
- Popular amenities like Air conditioning, Essentials, Hot water are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Watertown: Wifi, Smoke alarm, TV, Heating.
- Prioritize adding missing essentials: Heating.
- Consider adding popular differentiators like Air conditioning or Essentials to increase appeal.
- Highlight unique or less common amenities you offer (e.g., hot tub, dedicated workspace, EV charger) in your listing description and photos.
- Regularly check competitor amenities in Watertown to stay competitive.
Watertown Airbnb Guest Demographics & Profile Analysis (2025)
Guest Profile Summary for Watertown
- The typical guest profile for Airbnb in Watertown consists of primarily domestic travelers (99%), often arriving from nearby Sioux Falls, typically belonging to the Post-2000s (Gen Z/Alpha) group (50%), primarily speaking English or Spanish.
- Domestic travelers account for 99.2% of guests.
- Key international markets include United States (99.2%) and Canada (0.8%).
- Top languages spoken are English (92.1%) followed by Spanish (7.9%).
- A significant demographic segment is the Post-2000s (Gen Z/Alpha) group, representing 50% of guests.
Recommendations for Hosts
- Target domestic marketing efforts towards travelers from Sioux Falls and Watertown.
- Tailor amenities and listing descriptions to appeal to the dominant Post-2000s (Gen Z/Alpha) demographic (e.g., highlight fast WiFi, smart home features, local guides).
- Highlight unique local experiences or amenities relevant to the primary guest profile.
- Consider seasonal promotions aligned with peak travel times for key origin markets.
Nearby Short-Term Rental Market Comparison
How does the Watertown Airbnb market stack up against its neighbors? Compare key performance metrics like average monthly revenue, ADR, and occupancy rates in surrounding areas to understand the broader regional STR landscape.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Webster | 15 | $3,395 | $237.18 | 47% |
| Estelline Township | 17 | $3,211 | $256.44 | 47% |
| Brookings | 13 | $2,158 | $151.11 | 42% |
| Ortonville | 25 | $2,088 | $168.98 | 46% |
| Sioux Center | 24 | $2,087 | $138.99 | 51% |
| Aberdeen | 25 | $1,900 | $121.28 | 59% |
| Huron | 11 | $1,874 | $153.58 | 50% |
| Sioux Falls | 417 | $1,831 | $148.77 | 47% |
| Mitchell | 16 | $1,751 | $173.21 | 47% |
| Platte | 10 | $1,621 | $133.60 | 42% |