Watertown, South Dakota Airbnb Market Data 2026: STR Report & Statistics
How much can you earn on Airbnb in Watertown, South Dakota? Based on AirROI's 2026 dataset (April 2025 – March 2026), the short answer is $19,615 per year — at a $190 nightly rate, 40.6% occupancy, and a $79 RevPAR that reflects moderate rate-to-revenue efficiency with room to optimize.
With just 41 active listings, Watertown is a micro-market where moderate demand with room for well-positioned listings to outperform. Supply expanded 95.2% as revenue climbed even while nightly rates softened — occupancy gains are outrunning rate pressure. For hosts entering now, strengthening demand means there is still room to build a profitable listing.
Regulation is low with minimal registration requirements, pointing to an operator-friendly environment. In a market this size, differentiated listings with strong reviews can capture outsized returns relative to the competition.
Table of Contents [hide] [show]
What Are the Key Airbnb Metrics in Watertown?
In Watertown, the headline Airbnb metrics are $19,615 in average annual revenue,40.6% occupancy, $190 ADR, and $79 in RevPAR, and guests book about 53 days in advance.
How Much Do Airbnb Hosts Earn Monthly in Watertown?
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 June, while February 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 $5,366+ monthly, often utilizing dynamic pricing and superior guest experiences.
- Strong performing properties (Top 25%) earn $3,136 or more, indicating effective management and desirable locations/amenities.
- Typical properties (Median) generate around $1,785 per month, representing the average market performance.
- Entry-level properties (Bottom 25%) see earnings around $960, often with potential for optimization.
Average Monthly Airbnb Earnings Trend in Watertown
What Is the Monthly Airbnb Occupancy Rate in Watertown?
Maximize your bookings by understanding the Watertown STR occupancy trends. Seasonal demand shifts significantly influence how often properties are booked. Typically, Junesees the highest demand (peak season occupancy), while March 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 70%+ occupancy, indicating high desirability and potentially optimized availability.
- Strong performing properties (Top 25%) maintain 56% or higher occupancy, suggesting good market fit and guest satisfaction.
- Typical properties (Median) have an occupancy rate around 38%.
- Entry-level properties (Bottom 25%) average 23% occupancy, potentially facing higher vacancy.
Average Monthly Occupancy Rate Trend in Watertown
What Is the Average Airbnb Nightly Rate in Watertown?
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 July and dips lowest during November. 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 $347+ per night, often due to premium features or locations.
- Strong performing properties (Top 25%) achieve nightly rates of $254 or more.
- Typical properties (Median) charge around $132 per night.
- Entry-level properties (Bottom 25%) earn around $99 per night.
Average Daily Rate (ADR) Trend by Month in Watertown
What Is the RevPAR for Airbnb in Watertown?
RevPAR in Watertown is currently $79. Because RevPAR combines nightly rates with realized occupancy, it is one of the cleanest ways to compare how efficiently listings turn demand into revenue across the market.
- Entry-level properties (Bottom 25%) see $38 RevPAR.
- Typical properties (Median) generate $61 RevPAR.
- Strong performers (Top 25%) earn $95 RevPAR.
- Best-in-class (Top 10%) achieve $152 RevPAR.
Average Monthly RevPAR Trend in Watertown
RevPAR Insights for Watertown
- The average RevPAR in Watertown is $79. This metric combines nightly rates with realized occupancy, making it one of the best single-number indicators of market efficiency.
- The gap between the top 10% ($152) and bottom 25% ($38) is $114, indicating significant performance disparity driven by property quality, pricing strategy, and location.
- RevPAR peaks in Jun and bottoms out in Mar, mirroring the broader seasonal demand pattern and suggesting opportunities for dynamic pricing.
Recommendations for Hosts
- Track your own RevPAR monthly against these Watertown benchmarks. If your RevPAR falls below the median of $61, examine whether low occupancy or low ADR is the primary drag.
- Top-quartile listings achieve $95+ RevPAR through a combination of competitive pricing, strong reviews, and strategic amenities. Target this tier through incremental improvements.
- Use RevPAR rather than revenue alone when comparing properties of different sizes — it normalizes for available nights and gives a more accurate picture of performance.
Get Live Watertown Market Intelligence 👇
Explore Real-time Analytics
When Is the Peak Season for Airbnb in Watertown?
Watertown's peak Airbnb season falls in June, July, August, while the softest stretch is February, March, April. Overall, the market shows highly seasonal trends requiring careful strategy, which should guide pricing, minimum stays, and cash-flow planning.
Peak Season (June, July, August)
- Revenue averages $3,577 per month
- Occupancy rates average 52.5%
- Daily rates average $196
Shoulder Season
- Revenue averages $2,585 per month
- Occupancy maintains around 41.7%
- Daily rates hold near $186
Low Season (February, March, April)
- Revenue drops to average $1,330 per month
- Occupancy decreases to average 25.6%
- Daily rates adjust to average $179
Seasonality Insights for Watertown
- Airbnb seasonality in Watertown is pronounced. Revenue swings sharply between peak and low months, which means pricing strategy, minimum-stay settings, and cash reserves all need to account for extended slower periods.
- During the high season, the absolute peak month showcases Watertown's highest earning potential, with monthly revenues climbing to $3,796, occupancy reaching 58.7%, and ADRs peaking at $198.
- Conversely, the slowest single month marks the market's lowest point — revenue may dip to $1,236, occupancy could drop to 22.6%, and ADRs may adjust to $174.
- 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 and consider tightening cancellation policies to reduce last-minute gaps.
- Low Season: Offer competitive pricing, extended-stay discounts, and flexible cancellation policies. Target off-season travelers like remote workers, budget-conscious guests, and travelers with flexible schedules.
- Shoulder Seasons: Implement dynamic pricing that bridges peak and low rates. Target weekend travelers, local events, and business visitors. Slightly more flexible terms than peak season can help maintain occupancy without deep discounting.
- In a highly seasonal market like Watertown, building a cash reserve during the top months is essential for covering fixed costs during the slow period. Automated pricing tools can help capture demand shifts in real time.
Do You Need a License for Airbnb in Watertown?
Low regulation and minimal registration activity in Watertown, South Dakota, United States point to an operator-friendly environment. That said, even low-regulation markets may have tax collection requirements, safety standards, or HOA rules that affect short-term rental operations. 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, 2026, finding no licensed listings among those analyzed)
What Are the Best Neighborhoods for Airbnb in Watertown?
With a compact short-term rental market, Watertown gives early-mover hosts an advantage in the right neighborhoods. The areas listed below are where guest demand and local attractions converge — a useful lens for investors evaluating whether to enter this market and where to position their listing.
| 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 |
With 8 distinct neighborhoods showing meaningful short-term rental activity, Watertown offers diversification within a single market. Investors can tailor their strategy — from high-turnover tourist zones to quieter residential areas that attract longer stays and remote workers.
What Types of Properties Are on Airbnb in Watertown?
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 95.1% of the 41 active rentals. This indicates strong guest preference for privacy and space.
- Looking at the property type distribution in Watertown, Apartment/Condo properties are the most common (34.1%), reflecting the local real estate landscape.
- Houses represent a significant 34.1% portion, catering likely to families or larger groups.
Watertown Airbnb Room Capacity Analysis (2026): Bedroom Distribution
Distribution of Listings by Number of Bedrooms
Room Capacity Insights for Watertown
- The dominant room capacity in Watertown is 1 bedroom listings, making up 34.1% of the market. This suggests a strong demand for properties suitable for couples or solo travelers.
- Together, 1 bedroom and 2 bedrooms properties represent 65.8% of the active Airbnb listings in Watertown, indicating a high concentration in these sizes.
- A significant 31.8% of listings offer 3+ bedrooms, catering to larger groups and families seeking more space in Watertown.
Watertown Vacation Rental Guest Capacity Trends (2026)
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 (24.4%). This suggests the primary traveler segment is likely larger groups.
- Properties designed for 8+ guests and 2 guests dominate the Watertown STR market, accounting for 48.8% of listings.
- 43.9% 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 4.8 guests.
How Do Listings in Watertown Compare on Quality?
Listing quality in Watertown can be approximated through presentation depth, bedroom count, and how often hosts disclose exact locations. These signals show how professionally the local supply base is merchandised.
Listing Quality Insights for Watertown
- At 21.3 photos per listing on average, Watertown hosts invest well in visual presentation. Listings with 20+ photos consistently outperform in search ranking and conversion.
- 24.4% of listings show their exact location. Lower disclosure rates can increase booking hesitation — guests want to know exactly where they are staying.
Recommendations for Hosts
- Enable exact location if possible — it removes a common source of guest uncertainty and can improve your listing's position in map-based searches.
- Use these quality indicators as a self-audit checklist. Listings that exceed the Watertown averages across all three metrics are better positioned for premium pricing.
What Amenities Do Airbnb Guests Expect in Watertown?
Amenity Prevalence
Amenity Insights for Watertown
- Essential amenities in Watertown that guests expect include: Free parking on premises, Air conditioning, Heating, Wifi, Smoke alarm, TV. Lacking these (any) could significantly impact bookings.
- Popular amenities like Hot water, Kitchen, Essentials are common but not universal. Offering these can provide a competitive edge.
Recommendations for Hosts
- Ensure your listing includes all essential amenities for Watertown: Free parking on premises, Air conditioning, Heating, Wifi, Smoke alarm, TV.
- Prioritize adding missing essentials: Free parking on premises, Air conditioning, Smoke alarm, TV.
- Consider adding popular differentiators like Hot water or Kitchen 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.
Which Airbnb Amenities Boost Revenue in Watertown?
Not every amenity matters equally. This table focuses on the amenities most associated with higher revenue in Watertown, which makes it more useful for prioritizing upgrades than a simple popularity list alone.
| Amenity | Prevalence | Revenue With | Revenue Without | Revenue Uplift |
|---|---|---|---|---|
Kitchen | 87.8% | $21,458 | $6,351 | 237.9% |
Hot water kettle | 12.2% | $50,123 | $15,378 | 225.9% |
Dryer | 70.7% | $24,574 | $7,631 | 222.0% |
Exterior security cameras on property | 12.2% | $45,309 | $16,047 | 182.4% |
Ethernet connection | 14.6% | $41,467 | $15,869 | 161.3% |
Luggage dropoff allowed | 12.2% | $42,737 | $16,404 | 160.5% |
Dishwasher | 41.5% | $30,490 | $11,912 | 156.0% |
Board games | 19.5% | $38,102 | $15,133 | 151.8% |
Blender | 22.0% | $36,291 | $14,925 | 143.2% |
Barbecue utensils | 17.1% | $38,248 | $15,779 | 142.4% |
Revenue Impact Insights for Watertown
- Kitchen tops the revenue impact list with a 237.9% uplift — listings with this amenity earn $21,458 vs. $6,351 without it.
- Kitchen — while widespread — still correlate with meaningful revenue gains, making it table stakes rather than true differentiators.
Recommendations for Hosts
- Focus your upgrade budget on amenities in the top half of this table. Below-median amenities may improve guest experience but contribute less to revenue growth.
- Highlight revenue-impacting amenities prominently in your listing title, photos, and description — guests can't value what they don't notice.
Dive Deeper: Advanced Watertown STR Market Data (2026)
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 Airbnb Guest Demographics & Profile Analysis (2026)
Guest Profile Summary for Watertown
- The typical guest profile for Airbnb in Watertown consists of primarily domestic travelers (98%), 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 98.4% of guests.
- Key international markets include United States (98.4%) and Lithuania (0.5%).
- Top languages spoken are English (81.9%) followed by Spanish (9.7%).
- 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 Minneapolis.
- 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.
What Are Airbnb Guest Ratings in Watertown?
Listings in Watertown average 4.9 out of 5 overall, with about 36.4 reviews per active listing and 53.7% of listings carrying the Guest Favorite badge.
Rating Breakdown by Category
Guest Rating Insights for Watertown
- With an overall rating of 4.9, Watertown listings meet an exceptionally high bar. Guests consistently report strong satisfaction, which drives repeat bookings and referral traffic.
- The strongest subcategory is Communication (4.95), while Value (4.84) trails behind — a useful signal for hosts looking to prioritize upgrades.
- 53.7% of listings carry the Guest Favorite badge, a strong trust signal that can meaningfully lift click-through and booking rates.
Recommendations for Hosts
- Focus improvement efforts on Value — even small gains in the weakest subcategory can lift overall ratings and search ranking.
- Encourage guests to leave reviews after checkout. Listings with more reviews rank higher in search results and convert browsers into bookers more effectively.
Watertown Airbnb Booking Patterns (2026): 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 53.7% of listings. This suggests many properties have significant open periods on their calendars.
- Approximately 83.0% of listings show high availability (181+ days open annually), indicating potential for increased bookings or specific owner usage patterns.
- For booked days, the 31-90 days range is most frequent in Watertown (36.6%), reflecting common guest stay durations or potential owner blocking patterns.
- A notable 17.1% of properties secure long booking periods (181+ days booked per year), highlighting successful long-term rental strategies or significant owner usage.
How Far in Advance Do Guests Book Airbnb in Watertown?
Average Booking Lead Time by Month
Booking Lead Time Insights for Watertown
- The overall average booking lead time for vacation rentals in Watertown is 53 days.
- Guests book furthest in advance for stays during July (average 97 days), likely coinciding with peak travel demand or local events.
- The shortest booking windows occur for stays in January (average 17 days), indicating more last-minute travel plans during this time.
- Seasonally, Summer (78 days avg.) sees the longest lead times, while Winter (29 days avg.) has the shortest, reflecting typical travel planning cycles.
Recommendations for Hosts
- Use the overall average lead time (53 days) as a baseline for your pricing and availability strategy in Watertown.
- For July stays, consider implementing length-of-stay discounts or slightly higher rates for bookings made less than 97 days out to capitalize on advance planning.
- Target marketing efforts for the Summer season well in advance (at least 78 days) to capture early planners.
- Monitor your own booking lead times against these Watertown averages to identify opportunities for dynamic pricing adjustments.
What Is the Average Length of Stay for Airbnb in Watertown?
Guests in Watertown stay about 5.6 nights on average, generating roughly 776 reservations and 18.9 bookings per listing in the latest AirROI dataset. The most common check-in time is 3:00 PM and check-out is 11:00 AM.
Monthly Length of Stay in Watertown
Check-in Time Distribution
Check-out Time Distribution
Stay Pattern Insights for Watertown
- A mid-range stay length points to leisure-driven demand — weekend getaways and short vacations. Hosts should optimize for quick turnover efficiency while keeping the guest experience smooth.
- 18.9 bookings per listing is a manageable pace that balances revenue with operational overhead.
- Stay lengths peak in Sep (6.5 nights) and shorten in Feb (3.1 nights). Adjust minimum-night requirements seasonally to match.
Recommendations for Hosts
- Leverage the longer-stay pattern by offering weekly discounts — even 5-10% off can convert browsing into bookings for guests considering an extended stay.
- Set your check-in time to match or beat the market standard of 3:00 PM. Offering early check-in flexibility can be a low-cost differentiator.
- Monitor length-of-stay seasonality to adjust minimum-night requirements — longer minimums during peak periods maximize revenue while shorter minimums fill gaps in shoulder seasons.
Watertown Airbnb Minimum Stay Requirements Analysis
Distribution of Listings by Minimum Night Requirement
1 Night
9 listings
22% of total
2 Nights
9 listings
22% of total
3 Nights
6 listings
14.6% of total
4-6 Nights
2 listings
4.9% of total
7-29 Nights
1 listings
2.4% of total
30+ Nights
14 listings
34.1% of total
Key Insights
- The most prevalent minimum stay requirement in Watertown is 30+ Nights, adopted by 34.1% of listings. This highlights the market's preference for longer commitments.
- A significant segment (34.1%) caters to monthly stays (30+ nights) in Watertown, pointing to opportunities in the extended-stay market.
Recommendations
- Align with the market by considering a 30+ Nights minimum stay, as 34.1% 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 22% currently do.
- Explore offering discounts for stays of 30+ nights to attract the 34.1% 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 (2026)
Flexible
13 listings
31.7% of total
Moderate
10 listings
24.4% of total
Firm
12 listings
29.3% of total
Strict
6 listings
14.6% of total
Cancellation Policy Insights for Watertown
- The prevailing Airbnb cancellation policy trend in Watertown is Flexible, used by 31.7% of listings.
- There's a relatively balanced mix between guest-friendly (56.1%) and stricter (43.9%) policies, offering choices for different guest needs.
Recommendations for Hosts
- Consider adopting a Flexible policy to align with the 31.7% market standard in Watertown.
- Using a Strict policy might deter some guests, as only 14.6% of listings use it. Evaluate if potential revenue protection outweighs possible lower booking rates.
- Regularly review your cancellation policy against competitors and market demand shifts in Watertown.
How Much Are Airbnb Cleaning Fees in Watertown?
Cleaning fees in Watertown are meaningful operating levers, not just pass-through charges. What matters most is how often hosts charge them, how high they run relative to market norms, and how large a share of gross revenue they consume.
Cleaning Fee Insights for Watertown
- 82.9% of listings charge a cleaning fee, making it standard practice in Watertown. Guests expect it and factor it into their booking decisions.
- The gap between the average ($152) and median ($100) cleaning fee indicates some high-end properties are pulling the average up considerably.
- Cleaning fees represent 8.8% of gross revenue on average — a modest component of the overall booking price.
Recommendations for Hosts
- Price your cleaning fee competitively against the Watertown median of $100. Fees significantly above market norms can deter bookings, especially for shorter stays.
- Monitor competitor cleaning fees regularly. Airbnb's search algorithm factors in total price, so a well-calibrated cleaning fee can improve your listing's ranking.
What Do the Top Airbnb Listings in Watertown Look Like?
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.
Lake Kampeska Home @ Stony Point
Entire Place • 6 bedrooms
Waterfront Watertown Condo w/ Patio & Pool Access!
Entire Place • 4 bedrooms
South Lake Haven
Entire Place • 3 bedrooms
The Hangar-1/2 House 1/2 ManCave
Entire Place • 5 bedrooms
Dad’s Place
Entire Place • 1 bedroom
Kampeska Lakefront Cottage
Entire Place • 2 bedrooms
Note: Performance varies based on location, size, amenities, seasonality, and management quality. Data reflects the past 12 months.
Who Are the Top Airbnb Hosts in Watertown?
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 |
|---|---|---|---|---|
| Heather | 1 | $125,192 | 12 | 5.00/5.0 |
| Evolve | 3 | $105,664 | 49 | 4.78/5.0 |
| Michael | 4 | $68,166 | 42 | 4.84/5.0 |
| Eric | 4 | $63,326 | 139 | 4.83/5.0 |
| Aaron | 1 | $56,003 | 56 | 4.96/5.0 |
| Pamela | 1 | $41,753 | 34 | 4.94/5.0 |
| Bill | 1 | $37,700 | 22 | 4.95/5.0 |
| Alli | 1 | $36,863 | 133 | 4.98/5.0 |
| Midwest Bible Camp | 5 | $36,098 | 107 | 4.95/5.0 |
| Christopher | 1 | $31,571 | 237 | 4.93/5.0 |
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.
Who Are the Airbnb Hosts in Watertown?
Watertown is a quality-focused market, with a high Superhost share and fairly mature operating standards.
Host Profile Insights for Watertown
- With 63.4% Superhosts, Watertown has an experienced host base that sets high guest expectations. New entrants should plan for competitive quality standards.
- 9.8% of listings are professionally managed, reflecting a market still dominated by individual hosts.
- 2.4% of listings have Instant Book enabled. Lower Instant Book adoption means many guests must request approval, which can slow conversions.
- 70.7% of listings use Airbnb's simplified pricing (host-only fee), where the host pays the entire platform service fee and the guest sees one all-in price with no separate Airbnb service charge. High adoption signals a professional, PMS-connected host base — Airbnb mandates simplified pricing for software-connected listings.
Recommendations for Hosts
- Consider enabling Instant Book — it reduces booking friction and Airbnb's algorithm tends to favor Instant Book listings in search results.
- With 19.5% cohosted listings, there may be a growing local market for property management services.
- Benchmark your host metrics against these Watertown averages regularly and adjust your hosting strategy based on what top performers do differently.
Top Professional Management Companies in Watertown
These are the highest-grossing professional property management operations in Watertown, ranked by total revenue across their portfolio. Their performance metrics offer a benchmark for what institutional-level hosting looks like in this market.
| Company | Listings | Revenue | ADR | Occ. | Rating |
|---|---|---|---|---|---|
| Evolve | 3 | $105,664 | $265 | 40.2% | 4.78/5 |
| Tony | 1 | $5,064 | $214 | 19.1% | 4.56/5 |
Management Company Insights for Watertown
- The leading management company, Evolve, operates 3 listings with $105,664 in gross revenue — a useful benchmark for what scale looks like in Watertown.
- Top managers average 2 properties each, suggesting professional management in Watertown still operates at a relatively boutique scale.
- Professionally managed listings in the top tier average 4.67/5 in guest ratings — suggesting room for quality improvement even among larger operators.
Recommendations
- With only 9.8% of listings professionally managed, there may be an opportunity to differentiate through more structured operations and consistent guest experiences.
- Study how top management companies price, position, and maintain their portfolios — their ADR and occupancy rates reflect strategies refined across dozens of listings.
- If you're considering hiring a property manager, compare their portfolio performance against these benchmarks before committing.
How Does Watertown's Airbnb Market Compare to Nearby Cities?
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.
Compared with Aberdeen, Watertown has 17 percentage points lower occupancy and about $36 higher ADR. That helps frame whether this market is winning more on demand, pricing, or both.
| Market | Active Properties | Monthly Revenue | Daily Rate | Avg. Occupancy |
|---|---|---|---|---|
| Webster | 16 | $2,789 | $251.88 | 43% |
| Estelline Township | 15 | $2,650 | $269.91 | 43% |
| Mitchell | 21 | $2,372 | $265.29 | 45% |
| Huron | 10 | $2,108 | $164.38 | 48% |
| Aberdeen | 32 | $2,101 | $154.33 | 58% |
| Sioux Center | 21 | $1,954 | $146.01 | 51% |
| Sioux Falls | 454 | $1,800 | $171.50 | 42% |
| Brookings | 21 | $1,778 | $172.54 | 39% |
| Ortonville | 28 | $1,711 | $188.36 | 36% |
| Norden Township | 14 | $1,639 | $229.35 | 34% |
Frequently Asked Questions About Airbnb in Watertown
These quick answers summarize the most common investor and operator questions using AirROI's latest market data for Watertown.
How much do Airbnb hosts make in Watertown?
Watertown hosts earn about $19,615 per year on average, with an average nightly rate of $190 and RevPAR of $79. Those figures describe the typical revenue environment for active listings in Watertown, South Dakota, not the ceiling for the best operators. Source: AirROI 2026 data, Watertown market, April 2025 to March 2026.
What is the average Airbnb occupancy rate in Watertown?
The average Airbnb occupancy rate in Watertown is 40.6%. June is the strongest month and February is the softest, so hosts should expect demand to move meaningfully throughout the year rather than stay flat.
What is the average Airbnb daily rate in Watertown?
Listings in Watertown average $190 per night. The broader pricing spread also matters: lower-performing listings cluster closer to the lower quartiles, while premium homes can price materially above the city average when demand spikes or listing quality stands out.
How many Airbnb listings are active in Watertown?
Watertown currently has about 41 active Airbnb listings in AirROI's market dataset. That supply count helps explain how competitive the market is, how much depth there is for benchmarking, and whether the market behaves like a niche destination or a scaled urban market.
How strict are short-term rental regulations in Watertown?
AirROI currently classifies the short-term rental regulation level in Watertown as Low. The dataset also shows about 0.0% of listings with registration evidence. That is a market signal, not legal advice, so hosts should still confirm current licensing and compliance rules locally before listing.
What is the RevPAR for Airbnb in Watertown?
RevPAR in Watertown is about $79. That metric combines pricing and occupancy into one efficiency number, so it is often a better quick benchmark than ADR alone when investors want to compare how well listings convert nightly rates into realized revenue.
Is Airbnb profitable in Watertown?
At 40.6% occupancy, Watertown can be profitable — but margins depend heavily on operating costs, property acquisition price, and how well hosts optimize pricing across seasons. Average annual revenue is $19,615, but individual returns depend on property type, location within the city, and the host's operating efficiency.
How far in advance do guests book Airbnb in Watertown?
The average booking lead time in Watertown is about 53 days — a longer planning horizon typical of destination or vacation markets where travelers book well in advance. Hosts who understand their market's booking cadence can adjust minimum stays and pricing windows accordingly.
What are the best neighborhoods for Airbnb in Watertown?
Based on AirROI's analysis, some of the top neighborhoods for short-term rentals in Watertown include Downtown Watertown, Lake Kampeska, Pelican Lake. Each area attracts different guest profiles — from business travelers to leisure visitors — so the best location depends on the property type and target audience a host is aiming for. See the full neighborhood breakdown above.
What type of property performs best on Airbnb in Watertown?
entire_home listings make up 95.1% of the active supply in Watertown. The most common configuration does not always mean the most profitable — operators who identify underserved property types or bedroom counts can sometimes outperform the market average by filling a gap in local supply.
How does Watertown compare to nearby Airbnb markets?
Among neighboring markets, Webster posts $33,472 in average annual revenue with 42.5% occupancy, compared to Watertown's $19,615 and 40.6%. Comparing nearby markets helps investors understand whether a destination's performance reflects local demand or broader regional trends.
What is the average length of stay in Watertown?
The average Airbnb stay length in Watertown is about 5.6 nights. That matters for turnover, cleaning operations, and pricing strategy because shorter stays increase changeovers while longer stays can smooth occupancy and reduce operational friction.
What is the average Airbnb guest rating in Watertown?
Airbnb listings in Watertown average 4.9 out of 5 overall. About 53.7% of listings carry the guest favorite badge, which suggests a meaningful share of inventory is competing on review quality rather than price alone.
Which amenities boost Airbnb revenue in Watertown?
Kitchen and Hot water kettle are among the strongest revenue-linked amenities in Watertown. In AirROI's latest dataset, listings with these amenities outperform those without on average revenue, which makes amenities analysis useful for prioritizing investment and listing upgrades.
Do Airbnb hosts charge cleaning fees in Watertown?
Yes. About 82.9% of active Airbnb listings in Watertown charge a cleaning fee, and the average fee is $152. The more important operating benchmark is how much of gross revenue that fee consumes, not just the absolute dollar amount.
What percentage of Airbnb hosts are Superhosts in Watertown?
A 63.4% Superhost rate signals a highly competitive market where review quality and responsiveness are table stakes, not differentiators.
About AirROI Market Data
AirROI tracks over 20 million properties across 190+ countries and maintains 15+ years of historical performance data, making it one of the deepest Airbnb and STR intelligence platforms available. The analytics pipeline aggregates listing-level data monthly — revenue, occupancy, nightly rates, RevPAR, guest demographics, booking patterns, and competitive supply — so investors and operators can benchmark any market against its own history and against neighboring destinations.
Real estate investors, property managers, financial institutions, hedge funds, tourism boards, hospitality consultants, tech platforms, and academic researchers rely on AirROI data to underwrite acquisitions, optimize pricing, model macro trends, and conduct peer-reviewed research. Data is available through in-depth market reports like this one and the Airbnb API with 22 endpoints and an Airbnb MCP Server for AI agents.
AirROI proprietary analytics as of 2026-03-31. Metrics reflect trailing twelve-month aggregates from active listings. Revenue figures are market averages, not projections. Neighborhood descriptions are AI-generated and reviewed for accuracy. For full methodology, see the data methodology page.