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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The difference between a comfortable retirement and a tight one often comes down to location. And in practical terms, in South Dakota — known for no income tax and Great Plains affordability, we evaluated 1 cities on healthcare costs, tax burden, and cost of living. Sioux Falls is the top pick for 2…
#1 Ranked: Sioux Falls — cost index 95, rent $1,265/mo, income $74,714
Retiree-weighted scoring: healthcare index 98, no state income tax, cost index 95 — protecting fixed retirement income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
The difference between a comfortable retirement and a tight one often comes down to location. And in practical terms, in South Dakota — known for no income tax and Great Plains affordability, we evaluated 1 cities on healthcare costs, tax burden, and cost of living. Sioux Falls is the top pick for 2026 (that's pre-tax, of course).
Real talk: Retirement affordability is about protecting fixed income. Our model weights healthcare costs at 25 points (medical bills are the #1 financial risk in retirement), cost index at 25 points, and state tax burden at 15 points (taxes directly reduce pension and Social Security income). Sioux Falls leads with low healthcare costs, no state income tax, and a cost index of 95 (and that gap widens if you factor in state taxes).
Why Sioux Falls ranks #1: the numbers tell a clear story. At 95 on the cost index, residents save roughly 17% less than the typical American. Rent sits at $1,265/month while the median household pulls in $74,714/year. The Utilities category is particularly strong at 88, though Healthcare (98) lags behind. Home prices average $326,187 — $141,183 below the national median.
This looks affordable — until you factor in healthcare. In Sioux Falls, the healthcare index sits at 98 — not a dealbreaker, but worth knowing about (and that gap widens if you factor in state taxes).
Bottom line: Sioux Falls leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And as a general rule, click into any city below to see the full detail page with 12-month trend charts, profession-specific salary data, and a breakdown of all five cost categories. If you're seriously considering a move, use our salary calculator to model your specific income against these numbers.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Sioux Falls | 95 | $1,265 | Details |
206,410 residents · South Dakota
Sioux Falls earns its position at #1 through a combination that's hard to replicate. The 95 cost index sits 17 points below the national baseline, and the $74,714 median income means purchasing power here is amplified by the low cost base. Homes list at $326,187 — $141,183 below the national median — a genuine ownership opportunity. On the cost side, Utilities leads the way at 88, while Healthcare trails at 98 (and that gap widens if you factor in state taxes).
Our persona scoring model weights cost of living, income, rent, healthcare costs, tax burden, and population size differently based on what matters most to retirees. Each factor contributes 10-25 points to a 0-100 composite score. Cities with the highest composite rank first. 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 95 and median income of $74,714.
Sioux Falls scores highest for retirees due to its below-average cost of living, median rent of $1,265/mo, and competitive 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.