Looking to live well for less in South Dakota?
From granite peaks to prairie skies, South Dakota delivers stunning scenery and low cost of living. Known for Mount Rushmore, Badlands National Park, and the Black Hills, South Dakota is truly a sight to behold.
With no state income tax, affordable housing, and small-town charm, it's a smart move for budget-conscious buyers.
Why it matters: Housing prices are rising nationwide. In South Dakota, you can still find room to grow without breaking the bank.
What’s ahead: We’ve rounded up 10 of the state’s affordable cities – complete with stats, local perks, and why each one stands out.
1. Huron – Where Affordability Meets Artistic Charm
Pop: 14,515 | Median Home Value: $164,700 | Median Household Income: $51,556
Cost of Living Index: 77.1 (22.9% below national average)
Property Tax Rate: 1.29%
Median Property Tax: $2,124
Major Industries: Agriculture, healthcare, education, light manufacturing
Mean Commute Time: 12 min
Amenities: Dakotaland Museum, South Dakota State Fair, Ravine Lake, eclectic public murals
Why it’s #1: Huron offers small-town affordability with quirky attractions and a creative spirit.
2. Yankton – Riverfront Living with a Historic Pulse
Pop: 15,670 | Median Home Value: $202,300 | Median Household Income: $69,071
Cost of Living Index: 82.7 (17.3% below national average)
Property Tax Rate: 1.61%
Median Property Tax: $2985
Major Industries: Manufacturing, healthcare, education, tourism
Mean Commute Time: 12 min
Amenities: Lewis and Clark Lake, historic downtown
Why it’s great: Yankton blends riverfront beauty and rich history with room to breathe and grow.
3. Mitchell – Corn Palace Cool with Prairie Pride
Pop: 15,621 | Median Home Value: $182,000 | Median Household Income: $56,374
Cost of Living Index: 79.5 (20.5% below national average)
Property Tax Rate: 1.39%
Median Property Tax: $2,529
Major Industries: Agriculture, manufacturing, healthcare, education
Mean Commute Time: 12 min
Public Amenities: Corn Palace, Dakota Discovery Museum, Lake Mitchell, Mitchell Prehistoric Indigenous Archaeological Site
Why it’s a win: Mitchell delivers small-town comfort with big personality and iconic corn art.
4. Vermillion – College Town Energy in a Riverside Setting
Pop: 11,877 | Median Home Value: $210,200 | Median Household Income: $52,815
Cost of Living Index: 81.3 (18.7% below national average)
Property Tax Rate: 1.47%
Median Property Tax: $3,090
Major Industries: Education, healthcare, public administration, retail
Mean Commute Time: 15 min
Amenities: University of South Dakota, National Music Museum, Spirit Mound Historic Prairie, Vermillion River hiking trails
Why it’s a standout: Vermillion is where learning, culture, and affordability meet in one vibrant package.
5. Aberdeen – Hub City Heart with a Family Focus
Pop: 27,919 | Median Home Value: $205,500 | Median Household Income: $63,715
Cost of Living Index: 78.4 (21.6% below national average)
Property Tax Rate: 1.44%
Median Property Tax: $2,959
Major Industries: Manufacturing, education, healthcare, agribusiness
Mean Commute Time: 11 min
Public Amenities: Storybook Land, Wylie Park, Northern State University, Aberdeen Aquatic Center, community gardens
The draw: Aberdeen thrives on strong schools, playful parks, and that unmistakable Midwest welcome.
6. Watertown – Lake Life with a Creative Soul
Pop: 23,492 | Median Home Value: $212,300 | Median Household Income: $62,721
Cost of Living Index: 84.5 (15.5% below national average)
Property Tax Rate: 1.12%
Median Property Tax: $2,378
Major Industries: Manufacturing, healthcare, agriculture, retail
Mean Commute Time: 14 min
Amenities: Lake Kampeska, Bramble Park Zoo, Prairie Lakes Wellness Center
Why it’s noteworthy: Watertown is where art, outdoors, and affordability create a peaceful yet vibrant life.
7. Sioux Falls – Big-City Perks with Midwestern Ease
Pop: 209,289 | Median Home Value: $271,400 | Median Household Income: $74,714
Cost of Living Index: 90.7 (9.3% below national average)
Property Tax Rate: 1.42%
Median Property Tax: $3,854
Major Industries: Healthcare, finance, tech, retail
Mean Commute Time: 17 min
Public Amenities: Falls Park, Great Bear Ski Valley, Great Plains Zoo, bike trail system
The allure: Sioux Falls balances career opportunity and livability without big-city prices.
8. Brookings – Smart Living with Small-Town Energy
Pop: 24,555 | Median Home Value: $243,600 | Median Household Income: $61,979
Cost of Living Index: 84.3 (15.7% below national average)
Property Tax Rate: 1.38%
Median Property Tax: $3,362
Major Industries: Education, manufacturing, biotech, agriculture
Mean Commute Time: 12 min
Amenities: SDSU, McCrory Gardens, South Dakota Art Museum, Children’s Museum of South Dakota
Why it’s great: Brookings mixes academic energy, green spaces, and affordability in one thoughtful town.
9. Pierre – Scenic Serenity at the State’s Heart
Pop: 13,788 | Median Home Value: $219,500 | Median Household Income: $74,053
Cost of Living Index: 85.1 (14.9% below national average)
Property Tax Rate: 1.28%
Median Property Tax: $2,809
Major Industries: Government, healthcare, utilities, tourism
Mean Commute Time: 12 min
Amenities: State Capitol, Missouri River access, LaFramboise Island, South Dakota Discovery Center, walking trails
Why it’s special: Pierre pairs riverside tranquility with civic pride and small-capital charm.
10. Rapid City – Gateway to Adventure with Western Soul
Pop: 79,894 | Median Home Value: $270,000 | Median Household Income: $65,712
Cost of Living Index: 97.8 (2.2% below national average)
Property Tax Rate: 1.33%
Median Property Tax: $3,591
Major Industries: Tourism, healthcare, retail, construction
Mean Commute Time: 17 min
Amenities: Mount Rushmore access, Black Hills trails, Journey Museum, Dinosaur Park,
Why it works: Rapid City fuses outdoor thrills, urban comfort, and frontier charm.
The Bottom Line
South Dakota offers wide-open space, rock-solid communities, and some of the lowest housing costs in the U.S. – proof that affordability doesn’t mean giving up on quality of life.
Julie Gordey
A lifelong educator, Julie Gordey, is a retired school administrator. After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.