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Crunching costs, sorting signals, rendering insights.
Crunching costs, sorting signals, rendering insights.
South Dakota is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Sioux Falls leads at an index of 95 with rent at just $1,265/month — 33% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026. The …
206,410 residents · South Dakota
Why Sioux Falls ranks #1: the numbers tell a clear story. And for many people, 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 (and that gap widens if you factor in state taxes).
#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
| Rank | City | Population | Cost Index | Median Rent | |
|---|---|---|---|---|---|
| 1 | Sioux Falls | 206,410 | 95 | $1,265 | Details |
South Dakota is a genuine bargain: 1 of the 1 cities in this ranking come in below the national cost-of-living average. Sioux Falls leads at an index of 95 with rent at just $1,265/month — 33% less than the $1,895 national median. Here are the numbers, sourced from federal data updated in 2026. The math checks out.
Frankly, Sioux Falls is one of the cheaper options here. Rent is $1,265/month, which is lower than most cities in this ranking. The cost index is 95. Income sits at $74,714. You get the picture.
Look, 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. And roughly speaking, 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.
Straight up: Quietly competitive.
Now, the part that complicates the narrative: State context matters: South Dakota's 1 cities average a 95 cost index with $1,265/month median rent and $74,714 household income. No income tax and Great Plains affordability. But it's not #1 for the reason you might think.
What to do with this data: use the ranking as a shortlist, then dig into the city profiles for trend lines and category breakdowns. And broadly, 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.
Cities are ranked by total population from the latest Census estimates. Growing populations typically signal economic opportunity — but also rising costs. We pair population data with affordability metrics for context. 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.