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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.
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.
The numbers for Sioux Falls are straightforward: 74 on the cost index, $1,265/month rent, $74,714 income. Not the most exciting entry in the list, but solid. That's about what we'd expect given the state context.
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. Sioux Falls (index 74, rent $1,265). Each city profile below links to the full detail page with 12-month trends, salary breakdowns, and cost category comparisons (not adjusted for inflation, but still telling). The definition of value.
Now apply that to an actual budget: South Dakota — no income tax and Great Plains affordability. The 1 cities we track here average a cost index of 74 — we had to double-check this one — and median income of $74,714. It's a clear buyer's market compared to national norms. The typical rent runs $1,265/month, which is $630 less than the national median.
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.
#1 Ranked: Sioux Falls — cost index 74, rent $1,265/mo, income $74,714
1 of 1 cities come in below the national cost-of-living average of 111
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 74 breaks down to a Housing index of 74 (strongest category) and a Healthcare index of 95 (weakest). It's fine. Not great, not bad. 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.
| Rank | City | Cost Index | Median Rent | |
|---|---|---|---|---|
| 1 | Sioux Falls | 74 | $1,265 | Details |
Cities are ranked by median household income using Census ACS data. Income alone doesn't tell the full story — we also show cost of living index so you can gauge real purchasing power in each city across South Dakota. 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 74 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.