Midwest ranking
2 South Dakota cities ranked by cost of living, cheapest first.
Index 84
Index 86
Sorted by cost-of-living index — lowest (most affordable) first.
| # | City | Cost index | Median rent | Median income | Population | |
|---|---|---|---|---|---|---|
| 1 | Rapid City | 84 | $975/mo | $62,784 | 76K | Compare → |
| 2 | Sioux Falls | 86 | $965/mo | $71,785 | 193K | Compare → |
Why do people move to South Dakota? The most common reasons line up with what the data and geography support: affordable across the board, no state income tax, plus 2 more. The rest is below.
Averaging across the South Dakota cities we track, the composite cost-of-living index lands at about 85 — roughly 15% under the US baseline. That's not a quirk of one or two outlier towns; it shows up across most of the state. Average median rent across South Dakota cities runs about $970/mo.
South Dakota is one of just nine US states with no state income tax on wages. For a household earning $100,000, that's typically several thousand dollars a year that stay in the account instead of going to a state revenue department — and it stacks every year you live here.
South Dakota has the full four-season rotation, with winters that are cold enough to matter — meaning real snow, real ski resorts, and a culture that's built around it instead of pretending it isn't happening. If winter is a thing you actively like, this is the side of the country to be on.
South Dakota is one of the least densely populated states in the country, which sounds abstract until you've driven through it. Empty highways, big skies, no traffic, and the kind of nature-to-people ratio you can't really replicate by moving to the suburbs of a bigger metro.
Reasons reflect aggregated city data for South Dakota (Census ACS, BLS, BEA) plus well-known state-level geography. We only list points that are actually supported — different states show different sections.
Across South Dakota, Rapid City is the most affordable city we track (cost index 84, with median rent around $975/mo), while Sioux Falls sits at the top of the range with an index of 86—roughly 2% pricier than Rapid City. Use the table above to compare any South Dakota city directly against Rapid City.
The other end of the ranking — priciest first.