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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. Leading the pack: Sioux Falls at index 95, where median rent of $1,265/month saves renters $7,560/year versus the national median.
Dollar for dollar, few states match South Dakota's value. 1 out of 1 cities undercut the national cost index of 112. Leading the pack: Sioux Falls at index 95, where median rent of $1,265/month saves renters $7,560/year versus the national median.
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. That's more or less in line with the region. Home prices average $326,187 — $141,183 below the national median. If you've been scrolling through listings in high-cost metros and feeling defeated, look at these numbers again. Seriously. The difference between renting here and renting in a major coastal city could literally fund a retirement account. That's not hyperbole — run the math yourself. A thousand dollars a month saved, compounded over a decade, is a down payment on a house. In this city, that math actually works.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. The difference between #1 and #5 is often smaller than the difference between "good on paper" and "actually fits my life." Compare your top picks with our calculator to see real take-home 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
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 (that's pre-tax, of course). No gimmicks — just good numbers.
| Rank | City | Utilities Index | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Sioux Falls | 88 | 95 | $1,265 | Details |
Cities are ranked by their utilities 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 utilities index at 88, 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.