The town of Hermosa is located in the county of Custer. The town covers a total area of 1.24 sq. km. The economy of the town revolves around industries involved in auto painting and repair, beverage shops, supplies of building materials, contracting in building, contracting in excavation, contracting in fencing, industrial and commercial machinery, contracting in remodeling and repairing and rental agencies in property. Commercial spaces are utilized by convenience stores, showrooms of recreational vehicles, night clubs, auditoriums and bridal shops.