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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 111. Sioux Falls stands out at 74 on the index, with rent of $1,265/month — which, honestly, is lower than you'd expect here — and household income of $74,714. Assembled from 2026 Census, Zillow, and …
206,410 residents · South Dakota
Here's Sioux Falls by the numbers — and there's a lot to like (and a little to watch). Cost index: 74. Rent: $1,265/month. Income: $74,714/year. Home price: $326,187. Population: 206,410. The strongest category is Housing at 74; the most expensive is Healthcare at 95. Translate that rent to annual numbers, and residents are saving renters $7,560 per year vs. the national median. That level of affordability is getting rarer every year.
#1 Ranked: Sioux Falls — cost index 74, rent $1,265/mo, income $74,714
0 of 1 cities keep rent under 30% of $40K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Sioux Falls | $1,265 | 38% | 74 | Details |
The numbers are clear: 1 of 1 cities in South Dakota beat the national cost-of-living benchmark of 111. Sioux Falls stands out at 74 on the index, with rent of $1,265/month — which, honestly, is lower than you'd expect here — and household income of $74,714. Assembled from 2026 Census, Zillow, and BLS data.
At $1,265/month for rent and a cost index of 74, Sioux Falls is pretty much what you'd expect from a mid-size city in this part of the country. Income is $74,714. You get the picture.
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.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Sioux Falls | 0% | 6.1% | 1.08% | $32,372 |
Sioux Falls ranks #1 in South Dakota for this analysis with a cost index of 74 and median income of $74,714.
Yes. On a $40K salary in Sioux Falls, rent would consume about 38% of your gross monthly income. Financial experts recommend keeping rent under 30%. It's tight — consider a roommate or nearby suburb.
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.
After federal taxes, FICA (7.65%), and 0% state income tax, estimated take-home on $40K in Sioux Falls is approximately $32,372/year ($2,698/month). After median rent of $1,265/month, you'd have roughly $17,192/year for all other expenses.
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.