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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Look, Put differently: South Dakota — no income tax and Great Plains affordability. The 1 cities we track here average a cost index of 74 and median income of $74,714. It's a clear buyer's market compared to national norms. The typical rent runs $1,265/month, which is $630 less than the national med…
#1 Ranked: Sioux Falls — cost index 74, rent $1,265/mo, income $74,714
1 of 1 cities come in below the national cost-of-living average of 111
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Sioux Falls | 74 | $1,265 | Details |
Look, Put differently: South Dakota — no income tax and Great Plains affordability. The 1 cities we track here average a cost index of 74 and median income of $74,714. It's a clear buyer's market compared to national norms. The typical rent runs $1,265/month, which is $630 less than the national median.
The numbers are clear: 1 of 1 cities in South Dakota beat the national cost-of-living benchmark of 111. Sioux Falls stands out at 74 on the index, with rent of $1,265/month and household income of $74,714. Assembled from 2026 Census, Zillow, and BLS data.
The #1 spot goes to Sioux Falls, and the breakdown explains why. Renters here pay $1,265/month — saving renters $7,560 per year compared to the national average. Meanwhile, Housing is the standout at index 74, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget.
Rent data is sourced from Zillow's Observed Rent Index (ZORI), which tracks the median rent across all active listings — not just new leases. This gives a more representative and stable signal than asking prices alone. Sioux Falls: $1,265/mo. The cheapest city here is $630 under the national median — that's $7,560/year in savings on rent alone.
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours (and that gap widens if you factor in state taxes).
206,410 residents · South Dakota
Dive into Sioux Falls's numbers: cost index 74 (37 points below national average), rent $1,265/month, income $74,714, and a home price of $326,187. The city's cost profile isn't flat — Housing is the cheapest category at 74, while Healthcare runs 95. With 206,410 residents, it balances mid-size city convenience with manageable costs.
Cities are ranked by median 1-bedroom rent in ascending order using Zillow's Observed Rent Index (ZORI). We include all tracked cities in South Dakota with verified rent data, giving you a complete picture of the rental landscape from cheapest to most expensive. All data is sourced from federal agencies and verified research institutions. Cost of living indices are normalized to 100 (national median) using Zillow rent as the primary signal, with sub-category adjustments derived from regional BLS price data. Rankings are updated monthly as new data is released.
Sioux Falls ranks #1 in South Dakota for this analysis with a cost index of 74 and median income of $74,714.
Our cost of living index uses real Zillow rent data as the foundation, indexed to 100 (national median). Sub-categories (housing, food, transport, utilities, healthcare) are derived from the overall index with regional adjustments. Data is updated monthly.
City data is refreshed monthly from Census Bureau population estimates, Zillow rent and home price indices, BLS salary data, and Tax Foundation tax rates. Last updated: 2026.
The median 1-bedroom rent in Sioux Falls is $1,265/month as of 2026, based on Zillow's Observed Rent Index. This is $630 below the national median of $1,895/month.
The median home price in Sioux Falls is $326,187, which is 4.4× the local median income. It's on the edge of affordability for median-income households. The national median home price is $467,370.
South Dakota has a 0% state income tax rate — one of the states with no income tax. Combined state and local sales tax averages 6.1%, and the effective property tax rate is 1.08%.
This ranking was generated using data current as of early 2026. Population and income data comes from the Census Bureau's American Community Survey (5-year estimates). Rent and home price data is from Zillow's monthly releases. Tax rates are from the Tax Foundation's 2025 edition. Rankings are refreshed monthly.