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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 74 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.
#1 Ranked: Sioux Falls — cost index 74, rent $1,265/mo, income $74,714
1 of 1 cities keep rent under 30% of $60K gross income
Data sourced from Census Bureau, Zillow, BLS, and Tax Foundation — current as of 2026
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 74 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.
Why Sioux Falls ranks #1: the numbers tell a clear story. At 74 on the cost index, residents save roughly 37% less than the typical American. Rent sits at $1,265/month while the median household pulls in $74,714/year. The Housing category is particularly strong at 74, though Healthcare (95) lags behind. Home prices average $326,187 — $141,183 below the national median.
On a $60K salary, the key number is $1,500/month — that's 30% of gross, the standard affordability line. Sioux Falls ($1,265/mo, 25%) all clear that bar. After federal tax, FICA (7.65%), and state income tax, estimated take-home ranges from $47,157 to $47,157/year across these top picks.
Flip the lens, and you get a different read: The 1 cities we track in South Dakota paint a clearly affordable picture. It's fine. Not great, not bad. Average cost index: 74. Median rent: $1,265/month. Household income: $74,714. South Dakota is known for no income tax and Great Plains affordability — and the data backs that reputation convincingly (and that gap widens if you factor in state taxes).
If you're ready to act on this, three things to do next: 1) Click into the city pages for the top 3 and check rent trends — direction matters more than the snapshot. 2) Run your income through the salary calculator for a personalized cost comparison. That tracks. 3) Compare your top two picks head-to-head on our comparison page. The data is here; the decision is yours.
| Rank | City | Median Rent | Rent % of Gross | Cost Index | |
|---|---|---|---|---|---|
| 1 | Sioux Falls | $1,265 | 25% | 74 | Details |
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, Housing is the standout at index 74, making it one of the cheapest in the country for that category. The weak spot? Healthcare at 95. At a 20% rent-to-income ratio, there's genuine breathing room in the average household budget.
| City | State Tax | Sales Tax | Property Tax | Est. Take-Home |
|---|---|---|---|---|
1Sioux Falls | 0% | 6.1% | 1.08% | $47,157 |
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 $60K salary in Sioux Falls, rent would consume about 25% of your gross monthly income. Financial experts recommend keeping rent under 30%. You're well within that guideline.
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 $60K in Sioux Falls is approximately $47,157/year ($3,930/month). After median rent of $1,265/month, you'd have roughly $31,977/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.