Cost of Living in South Dakota
(Last Updated – July 1, 2026)
South Dakota is known for expansive landscapes, iconic Mount Rushmore, and small towns with a strong sense of community. Before relocating to the Great Plains, it’s worth asking, “What’s the cost of living in South Dakota?” Read on for an in-depth look at the average cost of living in South Dakota to help determine if it’s the right move for you.
What’s the Average Cost of Living in South Dakota?
Average Cost of Living in South Dakota: $54,100 per year
Before you move to the Mount Rushmore State, consider how the cost of living will impact your monthly budget and personal finances.
According to MERIC’s 2026 Cost of Living Index , South Dakota has the 23rd lowest cost of living in the country, with a cost-of-living index of 94.1 (on this scale, 100 is the average U.S. cost of living). The cost of living in South Dakota is lower than that of Montana but higher than its other neighboring states. If you need your budget to stretch a bit further, you could consider a move to Iowa, which borders South Dakota and is tied with Missouri as the 7th most affordable state in the U.S. But don’t be surprised to see South Dakota on any list of the best affordable places to live in the U.S.
So what is the cost of living in South Dakota on average? According to 2024 data from the Bureau of Economic Analysis (BEA), the average total personal consumption cost in South Dakota is $54,100 annually. Put another way, the average monthly expense for one person is $4,508 in South Dakota. Here’s a closer look at how that spending breaks down by category:
|
Category |
Average Annual Per-Capita Cost in South Dakota |
|
Housing and Utilities |
$8,013 |
|
Health Care |
$12,451 |
|
Food and Beverages (non-restaurant) |
$3,641 |
|
Gas and Energy Goods |
$1,191 |
|
All Other Personal Expenditures |
$28,804 |
Source: The Bureau of Economic Analysis, Personal Consumption Expenditures by State, 2024
Housing Costs in South Dakota
Average Housing Costs in South Dakota: $892-$1,680 per month
Housing costs in South Dakota are more affordable than the national average — good news if getting a home loan is on the horizon. South Dakota has just 429,698 housing units, according to the latest Census data, so the housing inventory isn’t the most extensive.
Buying your first home in South Dakota? Keep in mind that the typical home value in South Dakota is about $323,067, according to Zillow, so there are many properties you could choose that won’t require a jumbo loan. This is what you can expect to spend monthly if owning or renting:
• Median monthly mortgage cost: $1,680
• Median studio rent: $892
• Median one-bedroom rent: $781
• Median two-bedroom rent: $1,071
• Median three-bedroom rent: $1,193
• Median four-bedroom rent: $1,536
• Median five-bedroom (or more) rent: $1,546
• Median gross rent: $999
Where you live in South Dakota can impact how much you’ll pay for housing costs and the type of mortgage loan that will best suit your needs. Let’s take a look at the average home values for some of South Dakota’s largest cities, according to Zillow data from June 2026. (Remember there are down payment assistance programs to help homebuyers who are having difficulty coming up with funds to put money down on a property.)
|
South Dakota City |
Typical Home Price |
|
Sioux Falls |
$335,410 |
|
Rapid City |
$365,969 |
|
Aberdeen |
$246,060 |
|
Watertown |
$314,383 |
|
Brookings |
$324,894 |
Source: Zillow, June 2026
Utility Costs in South Dakota
Average Utility Costs in South Dakota: $341 per month
What do you need to budget for utilities each month if you plan to live in South Dakota? Here’s a breakdown of the average monthly utility costs for South Dakotans.
|
Utility |
Average South Dakota Bill |
|
Electricity |
$82 |
|
Gas |
$69 |
|
Cable & Satellite |
$103 |
|
Water & Sewer |
$87 |
Source: Doxo Insights 2026 U.S. Household Bill Pay Report
Groceries & Beverage Spending
Average Grocery & Beverage Costs in South Dakota: $303 per month
How much you spend on food each month can depend on your dietary preferences, as well as where you live. According to data from the Bureau of Economic Analysis, the average cost of food per person is $3,641 per year. This comes out to about $303 per person per month.
The Council for Community and Economic Research ranked the grocery costs in South Dakota’s main population centers for 2025. Below are the grocery costs per location, ranked from lowest to highest.
|
South Dakota City |
Grocery Items Index |
|
Pierre |
94.7 |
|
Sioux Falls |
95.8 |
|
Rapid City |
103.0 |
Source: The Council for Community and Economic Research – Cost-of-Living Index, 2024 average
Transportation
Average Transportation Costs in South Dakota: $10,067 for one adult with no children
Between commuting to work, running errands, and trips to South Dakota’s beautiful national parks, transportation costs are something you’ll need to budget for.
How much you’ll spend on transportation will depend on where you live, your habits, and what your household looks like. To get a clearer picture of what you might spend on transportation costs in South Dakota, here are some estimates from MIT’s Living Wage Calculator .
|
Family Makeup |
Average Annual Transportation Cost |
|
One adult, no children |
$10,067 |
|
Two working adults, no children |
$11,651 |
|
Two working adults, three children |
$18,906 |
Source: MIT’s Living Wage Calculator, 2026
Recommended: 7 Ways to Save Money on Commuting to Work
Health Care
Average Health Care Costs in South Dakota: $12,451 per person, per year
According to the BEA, South Dakotans spend an average of $12,451 per year on health care. What you actually spend will depend on your personal care needs and health coverage.
Average health care costs in South Dakota are similar to North Dakota, but higher than other neighboring states, including Iowa, Minnesota, Montana, Nebraska, and Wyoming.
Child Care
Average Child Care Costs in South Dakota: $810-$1,042 or more per child, per month
For families with kids, child care can be a significant expense. South Dakota residents who need support with child care costs can apply for state child care assistance programs .
For a better idea of how much you’ll pay for child care costs, use these average costs from CostofChildCare.org .
|
Type of Child Care |
Average Cost Per Month, Per Child |
|
Infant Classroom |
$810 |
|
Toddler Classroom |
$810 |
|
Preschooler Classroom |
$810 |
|
Home-based Family Child Care |
$1,042 |
Source: Costofchildcare.org
Taxes
Highest Marginal Tax Rate in South Dakota: None
South Dakota residents do not pay any state income taxes, reports the Tax Foundation .
Miscellaneous Costs
Now that your essential expenses are covered, let’s have a look at what you can expect to budget for discretionary spending. According to the BEA, average personal expenditures amount to $28,804 per person, per year.
Here are some examples of what you might spend money on in South Dakota for fun and leisure.
• Visit Mount Rushmore: $0-10 per vehicle, depending on age and military service
• Enjoy family-friendly fun at the Reptile Gardens in Rapid City: $17-26 per person, depending on age and seasonality
• Marvel at the unique works at Porter Sculpture Park: $0-10 per person, depending on age
How Much Money Do You Need to Live Comfortably in South Dakota?
Whether you can enjoy a comfortable style of living in South Dakota will vary depending on your family’s needs and your chosen lifestyle, as well as where you live.
If you plan on living in South Dakota, you might be relieved to know it is more affordable than the average cost of living in the U.S. In fact, South Dakota ranks 4th in the U.S. News & World Reports Affordability Rankings, which assesses the average cost of living against the average household wealth in each state.
As a reminder, MERIC ranked South Dakota 23rd on its list of state’s average cost of living. Between both lists, South Dakota emerges as one of the more affordable places to live in the country.
What Major City Has the Lowest Cost of Living in South Dakota?
Although South Dakota is one of the most affordable states to live in, some cities offer a lower cost of living than others.
These are three of the least expensive cities in South Dakota according to the Council for Community and Economic Research’s Cost-of-Living Index for 2025.
Sioux Falls
Among the most affordable cities in South Dakota is Sioux Falls, which has a cost-of-living index score of 87.5. Sioux Falls has a population of 213,748, making it the most populous city in South Dakota. Situated on the Big Sioux River, the city has plenty of dining, shopping, and entertainment options. In terms of housing costs, Sioux Falls scored 75.5 on the housing cost index, so it’s a more competitive market for first-time home buyers. (Going through the mortgage preapproval process will help you figure out what your home buying budget should be.)
Pierre
With a cost-of-living index of 89.0, Pierre is another of South Dakota’s most affordable cities. Though it’s South Dakota’s capital city, Pierre has a population of just 13,848, making it the second-least populous capital in the U.S. Nestled on the Missouri River, Pierre offers a small town atmosphere and access to outdoor activities like fishing, camping, and boating.
Rapid City
Rapid City is more expensive than Sioux Falls and Pierre with a cost-of-living index of 98.7. According to council data, housing costs measured out to 97.0 on the cost-of-living index, meaning that homeownership and renting here is the least budget-friendly of the three cities but more affordable than the U.S national average. Rapid City is home to a population of 80,589, making it South Dakota’s second largest city.
Recommended: Best Afforable Places to Live in South Dakota
Helpful Resources for Future South Dakota Residents
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Perhaps better known for famous tourist attractions like Badlands National Park, South Dakota also offers one of the lowest costs of living in the country. If proximity to natural beauty and the relaxed pace of the Mount Rushmore State sound like a good fit, you may need to secure a mortgage to relocate and put down roots.
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FAQ
Is South Dakota expensive to live in?
The cost of living in South Dakota is less than the national average. Residents of South Dakota can expect to pay less for housing, plus there’s no state income tax.
What are the pros and cons of living in South Dakota?
Affordability is a major pro of living in South Dakota, alongside access to outdoor recreation, less congestion, and charming small towns. On the flip side, parts of the state get very cold in winter. It also lacks public transportation, and its rural setting could be a drawback for some.
How much does a house cost in South Dakota?
Housing prices vary by location, but the average statewide home value is $319,255 based on June 2026 data from Zillow. This is less than the average U.S home value of $368,198.
Photo credit: iStock/RiverNorthPhotography
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