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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
Dollar for dollar, few states match South Dakota's value. 1 out of 1 cities undercut the national cost index of 112 — though some people might weigh that differently — . Leading the pack: Sioux Falls at index 95, where median rent of $1,265/month saves renters $7,560/year versus the national median …
#1 Ranked: Sioux Falls — cost index 95, rent $1,265/mo, income $74,714
1 of 1 cities come in below the national cost-of-living average of 112
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
Dollar for dollar, few states match South Dakota's value. 1 out of 1 cities undercut the national cost index of 112 — though some people might weigh that differently — . Leading the pack: Sioux Falls at index 95, where median rent of $1,265/month saves renters $7,560/year versus the national median (which, to be fair, is a metric that favors smaller cities).
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 (not adjusted for inflation, but still telling).
The ranking uses a composite of 2026 data from Census Bureau population/income surveys, Zillow rent and home price indices, BLS salary benchmarks, and Tax Foundation tax rates. Sioux Falls (index 95 — which, honestly, is lower than you'd expect here — , rent $1,265). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons.
The bigger question, though, is this: State context matters: South Dakota's 1 cities average a 95 cost index with $1,265/month median rent and $74,714 household income. And depending on your situation, no income tax and Great Plains affordability. Below, we isolate the healthcare number — it's the wild card.
Bottom line: Sioux Falls leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. 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 (that's pre-tax, of course).
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Sioux Falls | 95 | $1,265 | Details |
206,410 residents · South Dakota
At $1,265/month — which, honestly, is lower than you'd expect here — for rent and a cost index of 95, Sioux Falls is pretty much what you'd expect from a mid-size city in this part of the country. Income is $74,714. It's fine. Not great, not bad.
Cities are ranked by overall cost of living index in ascending order. This index weights housing (Zillow ZORI rent data) most heavily, with food, transportation, utilities, and healthcare sub-indices providing a composite picture. A score of 80 means overall costs are 20% below the national median. 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.
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.