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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
The numbers are clear: 1 of 1 cities in South Dakota beat the national cost-of-living benchmark of 112. Sioux Falls stands out at 95 on the index, with rent of $1,265/month and household income of $74,714. Assembled from 2026 Census, Zillow, and BLS data.
The numbers are clear: 1 of 1 cities in South Dakota beat the national cost-of-living benchmark of 112. Sioux Falls stands out at 95 on the index, with rent of $1,265/month and household income of $74,714. Assembled from 2026 Census, Zillow, and BLS data.
A closer look at Sioux Falls: the cost index of 95 breaks down to a Utilities index of 88 (strongest category) and a Healthcare index of 98 (weakest). Median rent is $1,265/month — 33% below the national median — while household income sits at $74,714, meaning locals spend about 20% of income on rent. That's a healthy margin by any standard.
Now, stack that against what people actually earn here: Across South Dakota, the average cost of living index is 95 — 17 points below the national median. Known for no income tax and Great Plains affordability, the state offers 1 tracked cities with median rents averaging $1,265/month. That's $630 less than the national average of $1,895. The practical impact: more room for childcare, savings, or just breathing room (that's pre-tax, of course).
Bottom line: Sioux Falls leads this ranking for clear, data-backed reasons — but the "best" city depends on your priorities. And depending on your situation, 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.
#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
206,410 residents · South Dakota
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, Utilities is the standout at index 88, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 98. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget.
| Rank | City | Transportation Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Sioux Falls | 90 | 95 | $1,265 | Details |
Cities are ranked by their transportation cost sub-index within South Dakota. Each sub-index is derived from the overall cost of living with regional adjustment factors. 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, SD has the lowest transportation index at 90, compared to the national average of 100.
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.