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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. It lines up with what you'd expect. 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.
#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. It lines up with what you'd expect. 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.
What does daily life actually cost in Sioux Falls? Start with the 20% rent-to-income ratio — that's the kind of margin that lets people build savings. And in practical terms, on the category level, Utilities (index 88) is where the real savings show up, while Healthcare (index 98) is the line item most likely to surprise newcomers. Income at $74,714 and homes at $326,187 round out a profile that ranks #1 for clear reasons.
Contrast this with: 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. This is worth factoring into any relocation decision.
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. There's an argument to be made — and I think the data supports it — that the cities getting all the attention right now are exactly the wrong places to move. The spotlight drives migration, migration drives demand, demand drives costs, and eventually the value proposition disappears. Meanwhile, cities like this one keep quietly being affordable, and the people who find them early are the ones who benefit most.
| Rank | City | Median Rent | Cost Index | |
|---|---|---|---|---|
| 1 | Sioux Falls | $1,265 | 95 | 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.
Cities are ranked by median 1-bedroom rent from Zillow's Observed Rent Index (ZORI). ZORI reflects the median rent across all listed units, not just new leases, providing a more stable and representative figure. 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.