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Most people hear South Dakota and immediately think of Mount Rushmore, the larger-than-life memorial of four U.S. presidents carved into the side of a mountain in the Black Hills. But this Great Plains state in the North Central United States has many more feathers in its cap.

It boasts a rich history, rugged landscapes, mighty rivers and small cities renowned for their liveability. Home to nine different tribes, the culture, history, cuisine and lifestyles of tribes like the Lakota, Dakota and Nakota are deeply ingrained in the state’s cultural fabric. From the colorful rock canyons of Badlands National Park to sweeping grasslands, South Dakota is a fantastic place for outdoors and nature lovers to live.

The cost of living in South Dakota is also reasonable. In general, things like housing and utilities cost less than the national average. But, due to the state’s rural location, some expenses like food are more costly. Different cities and towns around the state offer different living costs and lifestyles for a wide range of budgets and interests. If you’re considering moving to South Dakota, gaining a better understanding of how the cost of living differs around the state will help you find the best place for you. Let’s take a closer look at South Dakota‘s cost of living and prices in some of its biggest and most popular cities.

South Dakota housing prices

You’ll be paying below or equal to the national average for housing costs in South Dakota. Affordable housing is one benefit of living here, with low rents and home prices. Even in the state’s most populous cities, average rents for one-bedroom apartments are under $1,000.

Here’s a closer look at housing costs in three of South Dakota’s top cities.

Pierre

Sitting on the banks of the Missouri River in central South Dakota, Pierre is the state capital. With around 14,000 residents, it’s the ninth-most-populous city in the state. It’s also the second-least-populous state capital after Montpelier, VT. Locals here enjoy a laidback, relaxed quality of life, with a charming historic downtown and access to outdoor sports like fishing, boating and hiking. All in all, it’s a great state capital to call home.

Housing costs in Pierre are 5.1 percent above the national average, but average rents are some of the lowest in the state. You can find one-bedroom apartments for an average of $625 a month and two-bedroom units for $740. The price for one-bedrooms dropped significantly by 31 percent from last year. But two-bedroom rates are up 6 percent.

Rapid City

With a population of 76,184, Rapid City is South Dakota’s second-most-populous city. Located in the western part of the state, it’s best known for being the gateway to Mount Rushmore. But there’s far more to Rapid City beyond being a gateway town. Residents here can go hiking in Black Hills National Forest and enjoy the art scene and unique attractions like the Norwegian-style Chapel in the Hills. But, Rapid City is very much a hub for outdoor lovers. Along with the national forest and state parks, Rapid City is close to the spectacular rock formations of Badlands National Park.

The cost of housing here is among the lowest in the state, falling 18.2 percent below the national average. For a one-bedroom apartment, you’ll pay around $955 a month, which is up 9 percent from last year. For a two-bedroom apartment, the average rent is $1,012, up 4 percent from last year.

Sioux Falls

Named after the majestic waterfalls in the heart of town, Sioux Falls is an outdoorsy city in the southeastern part of the state. It’s also South Dakota’s most populous city with a population of 196,528. The Big Sioux River flows right through town, tumbling over rocks in Falls Park. Lush parks, walking trails and bike paths follow the river through town. Along with outdoor recreation and natural beauty, Sioux Falls is known for its vibrant cultural scene, universities and family-friendly atmosphere. If you love to ski but hate ski-town prices, this is one of the cheapest ski towns to live in.

Housing costs here are 5.4 percent below the national average. But both average rental rates and the housing market are on the rise. The cost of a one-bedroom apartment is up 13 percent from last year to $865. The average monthly rent for a two-bedroom apartment is up 10 percent to $976.

Sioux Fall’s housing market has grown 18.5 percent over the past year. The median sale price for a house here is $320,000.

South Dakota food prices

Living in South Dakota introduces you to its underappreciated and diverse cuisine. Dishes here have roots in a variety of cultures and countries, from native South Dakota tribes to German and Russian immigrants. Some typical foods that are popular here include Indian tacos, chislic, kuchen and buffalo.

In most South Dakota cities, you’ll be paying more than the national average for food costs. Overall, total grocery costs are 1.8 percent above the national average. The state’s remote location and far-between cities could be contributing factors to these higher costs. The average South Dakota resident spends between $233 and $266 a month on food, which comes out to between $2,801 and $3,200 annually. Compared to other states’ food spending, that’s a pretty average, middle-of-the-road amount. Residents of states like California and New York spend roughly the same.

But food costs do vary by city, with some areas being more or less than the national average:

• Sioux Falls is 9.7 percent below the national average
• Pierre is 4.7 percent above the national average
• Rapid City is 19.8 percent above the national average

Rapid City comes out on top as the most expensive city for food, while Sioux Falls is the least expensive. A half-gallon of milk costs $3.50 in Rapid City compared to $2.22 in Sioux Falls. The price tag for a loaf of bread in Rapid City is $4.49 in Rapid City but only $3.11 in Sioux Falls.

South Dakota utility prices

For utilities like water, electricity and internet, you’ll be paying less than the national average in South Dakota. With numerous big rivers cutting through the state, South Dakota gets the majority of its electricity from hydropower. In fact, almost 70 percent of the state’s power comes from renewable resources like water and wind. Groundwater from wells and aquifers provides the majority of the state’s water.

It’s always good knowing the energy powering your home is coming from a more sustainable source. But lower costs are also nice. This is how utility costs in these South Dakota cities compare to the national average:

• Sioux Falls is 18.5 percent below the national average
• Rapid City is 8.8 percent below the national average
• Pierre is 4.9 percent below the national average

Sioux City is the least expensive city, both compared to the national average and in average utility bills. The average monthly energy bill here is around $124.73. The city with the most expensive energy bills is Pierre at $157.34.

The average water bill in South Dakota is $24.

South Dakota transportation prices

South Dakota is famous for having a whole lot of space and not many people to fill it. With vast expanses between urban centers, public transit options are few and far between. Most big cities offer some form of mass transit like the bus. In some small towns and communities, though, having a car is a necessity. If you do use a car to get around, you’ll be happy to hear that there are no toll roads in South Dakota.

Using public transportation to get around your city or state has many benefits, like saving money on gas. It’s also more environmentally friendly and reduces traffic congestion in big cities. For the most part, you’ll be paying less than the national average for transportation costs in these South Dakota cities:

• Sioux Falls is 13.4 percent below the national average
• Pierre is 13 percent below the national average
• Rapid City is 2 percent above the national average

Rapid City is the only exception, with transportation costs slightly above the national average. All of these have mass transit options, but some are more extensive than others. For example, Pierre doesn’t have a transit bus system operating around town. But, it is part of Rapid Cities Public Transit, an intercity bus service connecting counties and cities in the central part of the state around the Missouri River. This service is primarily aimed at providing assistance to the elderly, disabled, youth and low-income passengers. But, the general public can use it, as well. Rates start at $2.

Let’s take a closer look at public transportation in Sioux Falls and Rapid City.

Sioux Area Metro in Sioux Falls

Sioux Area Metro provides fixed-route bus connections around the city of Sioux Falls and its metro area. Riders have 12 different routes to choose from. A one-way ride costs $1.50. Riders can purchase 7-day passes for $12.50 and 30-day passes for $30.

If you’re looking for a city that’s easy to get around on a bike or by foot, Sioux Falls isn’t the best option. It has average scores in both areas, with a walk score of 44 and a bike score of 49. However, some parts of town are nicely suited to walking or biking. The riverfront parks along the Big Sioux River make for a lovely spot to bike or walk.

Rapid Ride in Rapid City

Residents of Rapid City can get around town using the six different Rapid Ride fixed-route bus routes provided by Rapid Transit System. The provider also offers a dial-a-ride service for riders with disabilities. In addition to limited route options, Rapid Ride also has limited hours. This reduced service and access could be part of why transportation costs here are higher than the national average. Single ride fares cost $1.50 and a monthly pass is $30. Transfers are free, as well.

Combine limited public transit with a low walk score of 28 and a low bike score of 36 and you’re left with likely needing a car to get around Rapid City rapidly.

South Dakota healthcare prices

The cost of healthcare like doctor’s visits and prescriptions varies widely depending on where you live in South Dakota. But it’s also important to note that healthcare costs can also vary widely by person. It’s difficult to determine an overall average for healthcare costs since these prices and costs are vastly different from person to person. Due to factors like pre-existing conditions, a person may pay much more for healthcare than their next-door neighbor.

Taking this into consideration, the cost of healthcare in most South Dakota cities ranges from fairly affordable to very expensive. Take a look at how much it costs to go to the doctor in these cities:

• Sioux Falls: $162.50
• Rapid City: $110
• Pierre: $125

Rapid City is the least expensive, followed by Pierre. However, Sioux Falls jumps significantly in terms of cost. Compared to the national average, it’s also the most expensive South Dakota city for healthcare:

• Rapid City is 13.3 percent below the national average
• Pierre is 1 percent above the national average
• Sioux Falls is 1.6 percent above the national average

Sioux Falls is also the most expensive city to go to the dentist. A dental check-up costs $102 compared to $73 in Pierre and $90.33 in Rapid City.

South Dakota ranks 29th nationwide for the quality of its healthcare, access and overall public health. Sioux Falls has some of the top-ranked hospitals in the state, which could account for the higher prices. Otherwise, you’ll find good but standard healthcare resources around South Dakota.

South Dakota goods and services prices

Living in South Dakota, you’ll be paying less than the national average for basic goods and services like getting a haircut or going out to the movies. Here’s how the cost of some common items and services varies between different South Dakota cities:

This is how these prices and how the overall cost of other miscellaneous goods and services compares to the national average:

• Rapid City is 9 percent below the national average
• Sioux Falls is 8.3 percent below the national average
• Pierre is 2.2 percent below the national average

In relation to the national average, Pierre is the most expensive city. But, prices are often cheaper there than in other South Dakota cities. A haircut costs $16 in Pierre, but $21 in Rapid City. Movie tickets in Sioux Falls are $10.35 compared to $9 in Pierre. A city’s rank against the national average doesn’t always mean prices will follow the same trend.

Taxes in South Dakota

Whether it’s in the form of income taxes or sales taxes, tax is another important expense to consider. Some states have higher taxes than others. In South Dakota, the statewide sales tax is 4.5 percent. That means that for every $1,000 you spend in South Dakota, you’ll be paying $45 extra in taxes.

Most municipalities also levy their own local sales tax on top of the statewide rate. This amount can vary between cities:

• Sioux Falls has a combined tax of 6.5 percent
• Rapid City has a combined tax of 6.5 percent
• Pierre has a combined tax of 6.5 percent

While some South Dakota municipalities only have a 1 percent local sales tax, the majority are 2 percent. All three of our highlighted cities implement a 2 percent local sales tax in addition to the statewide rate. That brings that $45 extra in sales tax up to $65. Luckily, this is the maximum sales tax you’ll pay in South Dakota.

South Dakota is also one of the few states that doesn’t have an individual income tax. This can help you stretch your budget even more.

How much do I need to earn to live in South Dakota?

From housing to utilities, South Dakota has an affordable cost of living that’s either below or slightly above the national average. But, does it fit your budget? Housing is usually the most expensive part of a monthly budget, so it’s recommended that you only spend 30 percent of your gross monthly income on rent. This ensures you have ample money left over for other essentials like food and utilities, as well as savings or fun activities.

The average rent in South Dakota is $995. To only spend 30 percent of your monthly income on rent, you need to make $3,316 a month. That comes out to $39,792 annually. Salaries in South Dakota range from $24,375 to $103,587. This shows that some people may have trouble affording housing here. But the median household income is $59,896, so families and people who have roommates can make ends meet.

Based on factors like income and location, you can figure out what you can afford to pay in rent each month using our rent calculator.

Living in South Dakota

Living in South Dakota gives you access to epic landscapes to both admire and explore, unique cultural scenes and friendly cities. All this and more comes at a pretty reasonable cost of living that fits all sorts of budgets. So, if you want to live affordably in a sparsely-populated state with tons of wide open spaces and cool cities, South Dakota could fit the bill.

The Cost of Living Index comes from coli.org.

The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.

Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.

Source: rent.com