Most affordable places to live in South Dakota have cost of living about 7% lower than the national average. Housing costs run roughly 12% less than what most Americans pay.
A family earning $70,000 a year can save around $3,360 compared to families in coastal states with income tax. And since South Dakota has no state income tax, residents enjoy keeping more of their paycheck.
Key Takeaways
- Huron ranks as South Dakota’s most affordable city with median home prices of $177,070.
- Sioux Falls offers the cheapest rental market in South Dakota at $971 per month.
- Brandon residents earn the highest median household income at $105,618.
- South Dakota’s zero state income tax policy saves households thousands annually.
- Aberdeen’s cost of living runs 21.6% below the national average.
Comparing Most Affordable Places to Live in South Dakota
7 Most Affordable Places to Live in South Dakota in 2025
1. Huron
- Median Home Price: $177,070
- Median Rent: $1,194
- Cost of Living: 11% below U.S. average
- Best For: Budget-conscious families, agriculture professionals, retirees seeking low property taxes, State Fair enthusiasts
Huron is home to about 14,600 people and offers a welcoming small-town prairie experience. The South Dakota State Fair is the city’s biggest event, attracting over 180,000 visitors.
Moreover, families in Huron benefit from the Huron School District 02-2. They provides solid education through Huron High School and James Valley Christian School.
Property taxes here are the lowest in South Dakota, with a median of $1,953 per household. This saves homeowners about $1,000 a year compared to the state average. Additionally, the city has stable jobs in its agricultural sector.
However, the crime rates are higher than in 91% of other South Dakota cities, most of them property related.
👉 Discover affordable living and friendly neighborhoods in Huron. Start your Huron homes for sale search today!
2. Aberdeen
- Median Home Price: $215,892
- Median Rent: $864-$1,194
- Cost of Living: 21.6% below national average
- Best For: Families with young children, Northern State University students, arts enthusiasts, outdoor recreation lovers
Aberdeen is South Dakota’s third-largest city, with about 28,600 residents. Known as the “Hub City,” it sits centrally in the northern plains. Families and visitors enjoy Storybook Land, a free park with themed areas like a castle and the Land of Oz.
Meanwhile, Northern State University brings youthful energy and offers cultural events hosted by the Aberdeen Community Theatre. The median household income in Aberdeen is $67,348. Furthermore, energy costs here are low, ranked as the third-cheapest in the state at $0.122 per kWh.
However, Aberdeen is isolated from major metro areas. This can be a challenge for residents who want metropolitan amenities.
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3. Pierre
- Median Home Price: $274,895
- Median Rent: $1,194-$1,460
- Cost of Living: 6.3% below national average
- Best For: State government employees, fishing enthusiasts, history buffs, professionals seeking employment stability
Pierre, South Dakota’s capital, has about 13,800 residents, making it one of the smaller state capitals in the nation. Lake Sharpe provides year-round walleye fishing and boating.
Cultural Heritage Center showcases Native American artifacts and state history. Meanwhile, T.F. Riggs High School serves the families in the school district 32-2.
Furthermore, the median household income is around $74,000 to $84,000. However, housing costs are higher, with median rents about $1,460. The city’s remote location may also pose challenges.
👉 Enjoy riverfront views and relaxed capital city living in Pierre. Start browsing Pierre homes for sale today!
4. Yankton
- Median Home Price: $255,111
- Median Rent: $1,194
- Cost of Living: 8-10% below national average
- Best For: Water sports enthusiasts, boating families, outdoor recreation lovers, retirees seeking lakeside living
Yankton takes pride in its history as the first capital of Dakota Territory from 1861 to 1883. The Lewis and Clark Recreation Area offers 418 campsites, 20 camping cabins and 4 marinas.
Yankton High School and Stewart Elementary serve families through the school district 63-3. However, summer tourism cab bring large crowds, straining local services.
Property taxes in Yankton are among the most affordable, with a median of $2,415. Moreover, Energy costs are also low, tying for fourth-cheapest statewide.
👉 Find lakeside charm and great value in Yankton. So begin your Yankton homes for sale search today!
5. Sioux Falls
- Median Home Price: $213,527
- Median Rent: $971
- Cost of Living: 9.3% below U.S. average
- Best For: Young professionals, families wanting urban amenities, healthcare workers, tech professionals, career-focused movers
Sioux Falls is South Dakota’s largest city, home to about 202,000 residents. It offers urban amenities combined with Midwestern affordability. Falls Park is a highlight, featuring stunning pink quartzite waterfalls and scenic views.
The healthcare sector thrives here, led by Sanford Health’s headquarters. Furthermore, there is a 26-mile bike trail connects over 80 parks across the city. Meanwhile. Lincoln High School and Roosevelt High School serves the families with quality education.
Sioux Falls has the cheapest rental market in the state, with an average monthly rent of $971. Moreover, property taxes also rank low, with a median of $2,135. The city’s zero state income tax further protects resident’s take home pay.
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6. Mitchell
- Median Home Price: $237,354
- Median Rent: $1,194
- Cost of Living: 8-10% below national average
- Best For: Dakota Wesleyan University students, agricultural professionals, families seeking quirky attractions, tourism workers
Mitchell, home to about 15,600 residents, is famous for the World’s Only Corn Palace. Mitchell’s median property tax is $2,381. Plus, energy costs are also low. Meanwhile, Dakota Wesleyan University brings energy and culture to the town.
Each year, the palace is decorated with 275,000 ears of corn, attracting visitors to this hub in the James River valley. Additionally, the Corn Palace Festival features concerts along with rides.
Tourism and agriculture drive this local economy. But they can cause seasonal fluctuations as well.
👉 Discover community pride and small-town comfort in Mitchell. Start your Mitchell homes for sale search now!
7. Brandon
- Median Home Price: $375,694
- Median Rent: $1,194
- Cost of Living: Similar to U.S. average
- Best For: Growing families prioritizing top schools, Sioux Falls professionals, higher-income households, suburban lifestyle seekers
Brandon’s rapidly growing suburban community attracts families seeking newer construction and excellent schools.
In fact, Brandon Valley school district ranks among the best in South Dakota. They have a 95% graduation rate. Additionally, students consistently score above state and national ACT averages.
Moreover, the median household income is $105,618. This creates great income-to-housing ratios. Property taxes are 18th most affordable at $3,954. However, you would require vehicle ownership in this infrastructure.
👉 Enjoy suburban comfort and easy access to Sioux Falls in Brandon. Explore available Brandon homes for sale now!
How We Ranked South Dakota’s Most Affordable Cities in 2025
Our comprehensive analysis uses weighted criteria such as,
- Housing Costs (47.6%)
- Rental Costs (23.8%)
- Cost of Living Index (20%)
- Property Taxes (7.1%)
- Energy Costs (7.1%)
- Home Value Trends (9.6%)
Data sources include ListWithClever South Dakota Affordability Rankings, Zillow Home Value Index, Redfin housing market data, U.S. Census American Community Survey, RentCafe cost of living calculations, and U.S. Department of Energy electricity rates. NeighborhoodScout crime statistics utilize 2023 FBI data released October 2024.
What Drives Affordability in South Dakota?
Most affordable places to live in South Dakota have housing costs that are about 12% lower than the national average. Utilities also cost roughly 10% less compared to the rest of the country.
In fact, renters benefit as well, with median gross rent at $866 monthly, making rentals accessible for working families. Additionally, South Dakota boasts zero state income tax.
Moreover, energy bills average $128 monthly, while groceries cost $299. Hence, on average, personal consumption costs total of $4,083 per month per person.
Smart Tips for South Dakota Living
- Visit Huron during the South Dakota State Fair each September to experience the community before committing.
- Explore Aberdeen’s free Storybook Land with children to gauge family-friendly amenities.
- Time your Pierre visit during summer for Missouri River recreation.
- Tour Yankton’s Lewis and Clark Recreation Area before buying waterfront property.
- Test commute times from Brandon to Sioux Falls during rush hour.
- Budget for heating costs in northern cities.
- Research property tax rates by specific zip code.
Should You Move to South Dakota?
Most affordable places to live in South Dakota stands out for its affordability. The cost of living is about 7% below the national average while zero state income tax helping residents keep more of their money.
Housing costs are 12% lower than the national average. The state also offers a range of living options. From Huron’s ultra-low property taxes to Sioux Falls’ booming urban economy and job market, you can access it.
Whether you’re drawn to Huron’s budget-friendly housing or Brandon’s top-rated schools, South Dakota provides these at a great value.
Ready to explore most affordable places to live in South Dakota? Discover South Dakota homes for sale on Houzeo.
Frequently Asked Questions
What is the most affordable place to live in South Dakota?
South Dakota's most affordable place is Huron with an Affordability Score of 100.0. Median home prices sit at $177,070 while property taxes lead the state at just $1,953 annually.
What are the top 7 most affordable cities in South Dakota?
The top seven most affordable places to live in South Dakota include Huron (Affordability Score 100.0), Aberdeen (93.6), Pierre (89.0), Yankton (86.9), Sioux Falls (81.0), Mitchell (78.0), and Brandon (76.3).
Which South Dakota cities are best for families on a budget?
For families on a budget, Aberdeen, Huron, Brandon prioritize education, while still providing affordable housing.
Are there affordable beach towns in South Dakota?
What makes South Dakota one of the most affordable states?
South Dakota imposes zero state income tax, saving households thousands annually. Housing costs run 12% below national average while utilities cost 10% less. Overall cost of living sits 7% below U.S. average, with median gross rent at $866 monthly.
