South Dakota offers more than prairies and Mount Rushmore, it’s a state shaped by outdoor adventure, strong community values, and a pioneering spirit. But challenges include harsh winters, limited economic diversity, and geographic isolation. This guide delivers a balanced look at life in the 605 and highlights the best cities for young professionals, families, and retirees…
7 Most Affordable Places to Live in South Dakota
- Local Editor:Local Editor: The HOMEiA Team
- Category: City Living Guide
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In a nation where housing costs continue to climb, South Dakota stands out—not for its stunning landscapes and rich culture, but rather, its remarkably affordable cost of living. With a median home price significantly below the national average and no state income tax, the Mount Rushmore State offers a compelling case for families, remote workers, and retirees seeking a life rich in experience, not expense. However, affordability varies throughout the state, and finding the right community is key to balancing budget with lifestyle.
This guide moves beyond postcard imagery to provide a detailed, data-driven analysis of the most inexpensive areas to call home in South Dakota for 2025. We’ve crunched the numbers on housing, utilities, transportation, and more to offer seven cities and towns where you can achieve financial stability without sacrificing the unique Midwestern experience. If you’re also considering other regions, you might find our guide on the most affordable places to live in Ohio helpful for comparison.
Table of Contents:
Key Takeaways
- Widespread Affordability: South Dakota’s overall cost of living is anywhere from 5%-20% below the U.S. average, with communities offering wallet-friendly housing, especially compared to neighboring states.
- Variety of Options: Affordable living isn’t limited to remote towns; it includes suburbs, college towns, and communities with prosperous job markets, offering choices for every lifestyle.
- Trade-Offs Exist: The most affordable cities often come with trade-offs, including fewer job opportunities outside key sectors, higher crime rates, or more remote locations requiring longer drives for major amenities.
- Beyond the Purchase Price: True affordability includes utility costs, which can be high in areas with extreme temperatures, and transportation expenses, which are substantial in isolated communities.
- Essential to Research: Safety and school ratings differ from city to city, making it crucial to research specific neighborhoods rather than relying on statewide generalizations.
I. Methodology: How We Chose the Most Affordable Places
Our selection of these seven locations is based on a weighted criterion prioritizing key metrics relevant to residents seeking value. Our goal is to identify places that offer a harmonious balance of affordability, access to essentials, and community, not just the lowest price tag.
- Housing & Affordability (30%): A primary driver for relocation. We’ve examined median home price, average monthly rent, and overall affordability compared to state averages—using crucial ratios like home-price-to-income to gauge true accessibility in a high-cost environment.
- Cost of Living (25%): Beyond housing, this metric evaluates the day-to-day expenses that define a budget, including the cost of groceries, utilities, transportation, and healthcare relative to other parts of the state.
- Access & Infrastructure (20%): Here, affordability can be negated by isolation. This criterion assesses critical access to groceries, healthcare facilities, major employers, and reliable internet and transportation links.
- Community & Safety (15%): A fundamental need. This assesses crime rates and considers the strength of community engagement, social offerings, and amenities that contribute to a high quality of life.
- Economic Resilience & Opportunity (10%): For long-term viability, we evaluate economic diversity, key industries, and employment trends to ensure a community is built for a stable and prosperous future.
Data for this article is compiled from verified 2025 sources, including Zillow, the U.S. Census Bureau, Bureau of Labor Statistics, FBI crime data, and local market reports.
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7 South Dakota Communities, One State: A Quick Comparison Table
City | HOMEiA Score | Cost of Living | Avg. Rent (2-Bed) | Home Price to Income Ratio | Income to Rent Ratio | Safety Rating |
|---|---|---|---|---|---|---|
| Huron | 78/100 | -18% | $800 | 4.1:1 | 56.3x | 65/100 |
| Yankton | 80/100 | -10% | $950 | 4.1:1 | 49.5x | 75/100 |
| Mitchell | 81/100 | -12% | $900 | 4.5:1 | 61.1x | 70/100 |
| Pierre | 82/100 | -15% | $850 | 3.6:1 | 56.5x | 78/100 |
| Watertown | 84/100 | -12% | $900 | 3.9:1 | 55.6x | 72/100 |
| Rapid City | 85/100 | -5% | $1,300 | 4.1:1 | 57.7x | 70/100 |
| Aberdeen | 87/100 | -15% | $950 | 5.1:1 | 54.7x | 65/100 |
II. Detailed Community Analysis: Seven Affordable Enclaves
1. Huron: The Heart of South Dakota
HOMEiA Score: 78/100
- Cost of Living: 18% below U.S. average
- Monthly Rent: $800
- Home price to income ratio: 4.1:1
- Income to rent ratio: 56.3x
- Safety rating: 65/100
A. Cost of Living & Housing: Huron is one of the most affordable cities in South Dakota, with incredibly low rent and home prices. This is a haven for those looking to minimize housing costs above all else.
B. Economy & Job Market: Economic prosperity is driven by agriculture, manufacturing, and healthcare. As the county seat of Beadle County, government services provide steady employment. It plays home to the South Dakota State Fair annually, which heightens local tourism and retail sectors.
C. Access & Infrastructure: Located at the intersection of US-14 and US-37, it serves as a regional hub for eastern South Dakota. It possesses essential services including a hospital, big-box stores, and reliable internet infrastructure.
D. Quality of Life & Culture: Here offers an authentic small-town experience with community events like the State Fair and affordable living. There are parks, recreational facilities, and a community-focused atmosphere appealing to families and retirees.
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2. Yankton: The Historic River City
HOMEiA Score: 80/100
- Cost of Living: 10% below U.S. average
- Monthly Rent: $950
- Home price to income ratio: 4.1:1
- Income to rent ratio: 49.5x
- Safety rating: 75/100
A. Cost of Living & Housing: Yankton provides exceptional affordability in southeastern South Dakota. Its housing market is substantial and stable, with many homes under $200,000. The cost of living allows for a comfortable lifestyle.
B. Economy & Job Market: As a regional government seat, their economy is filled with jobs in healthcare, education, and public administration. Manufacturing and tourism related to the Missouri River also contribute significantly.
C. Access & Infrastructure: Situated on the Missouri River and connected via US-81 and SD-50, this part of the state has all essential amenities, including a regional medical center and major retailers. The city serves as a focal point for surrounding rural communities.
D. Quality of Life & Culture: Residents embrace its historic identity as South Dakota’s first capital, which fosters a strengthened sense of community. The city has a high safety rating, low-key pace of life, and is ideal for those wanting a small-city feel with all necessary services. For those seeking other affordable options, you might explore the cheapest places to live in Texas.
3. Mitchell: The Corn Palace City
HOMEiA Score: 81/100
- Cost of Living: 12% below U.S. average
- Monthly Rent: $900
- Home price to income ratio: 4.5:1
- Income to rent ratio: 61.1x
- Safety rating: 70/100
A. Cost of Living & Housing: Mitchell provides ideal value in the scenic James River Valley. Housing is respectable, and its cost of living is manageable, especially for those taking advantage of local agricultural benefits.
B. Economy & Job Market: The economy consists of agriculture, manufacturing, and tourism centered around the World’s Only Corn Palace. Diversity provides some stability against market fluctuations, making it ideal for tradespeople, healthcare workers, and those in the tourism industry.
C. Access & Infrastructure: Being located on I-90 makes it well-connected to larger cities while maintaining their own identity. This possesses a well-equipped hospital, major stores, and reliable infrastructure.
D. Quality of Life & Culture: Life revolves around community events and agricultural heritage. The Corn Palace attracts visitors year-round, while offering a family-friendly atmosphere with good schools and recreational opportunities.
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4. Pierre: The Capital City Value
HOMEiA Score: 82/100
- Cost of Living: 15% below U.S. average
- Monthly Rent: $850
- Home price to income ratio: 3.6:1
- Income to rent ratio: 56.5x
- Safety rating: 78/100
A. Cost of Living & Housing: Pierre offers the lowest barrier to homeownership on this list. Having a plethora of sub-$200,000 homes, it’s ideal for first-time buyers or those looking to maximize their budget. Their overall cost of living is among the lowest in South Dakota.
B. Economy & Job Market: As the state capital, economic opportunities are heavily tied to government employment, providing stability and higher-paying jobs relative to its size. Agriculture and tourism along the Missouri River are also historical pillars.
C. Access & Infrastructure: The state capital is a regional hotspot for central South Dakota, with essential amenities including a hospital and major retailers. Its location on the Missouri River creates unique recreational opportunities.
D. Quality of Life & Culture: Life here is community-oriented and deeply connected to their state government and Western heritage. Cost of living allows residents comfort on a single income. An exceptional safety rating reflects its stable, government-focused community.
5. Watertown: The Lakes Region Anchor
HOMEiA Score: 84/100
- Cost of Living: 12% below U.S. average
- Monthly Rent: $900
- Home price to income ratio: 3.9:1
- Income to rent ratio: 55.6x
- Safety rating: 72/100
A. Cost of Living & Housing: Watertown is one of the most affordable homeownership markets in the state. Home-price-to-income ratio is highly attractive, allowing families and retirees to easily own a home outright. Utility costs are manageable despite the northern climate.
B. Economy & Job Market: A secure economy driven by manufacturing, healthcare, and retail. Tourism related to the Glacial Lakes region is significant, alongside agriculture and education as other key employers.
C. Access & Infrastructure: Situated on US-212 and connected to I-29 means it needs all essential services, including a regional medical center and reliable internet infrastructure. It serves as the primary commercial center for northeastern South Dakota.
D. Quality of Life & Culture: Arguably their greatest asset is proximity to the Glacial Lakes region. Locals have access to numerous lakes and outdoor recreational opportunities. Community members are family-friendly and retiree-heavy, with a slower pace of life and secure safety profile.
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6. Rapid City: The Family-Friendly Value Play
HOMEiA Score: 85/100
- Cost of Living: 5% below U.S. average
- Monthly Rent: $1,300
- Home price to income ratio: 4.1:1
- Income to rent ratio: 57.7x
- Safety rating: 70/100
A. Cost of Living & Housing: While not the easiest on the checkbook, Rapid City offers the best value on this list. As the second-largest city in South Dakota, it includes diverse housing options, better infrastructure, and top-rated schools at a price that remains below the national average. Your dollar stretches farther here.
B. Economy & Job Market: Residents benefit from an economy comprised of successful fields including tourism (Mount Rushmore), healthcare, and Ellsworth Air Force Base. The city has its own growing economy in retail, healthcare, and light industry.
C. Access & Infrastructure: Fully integrated into the regional economy, RC possesses modern roads, reliable utilities, and top-notch emergency services. Being connected to major tourist attractions while maintaining its own distinct, family-oriented identity is a plus.
D. Quality of Life & Culture: Here consistently ranked as one of the safest cities in SD while boasting numerous parks, community centers, and family-friendly events. It is the premier choice for families seeking access to urban jobs without sacrificing safety, space, and established schools.
7. Aberdeen: The Sunny Value Hub
HOMEiA Score: 87/100
- Cost of Living: 15% below U.S. average
- Monthly Rent: $950
- Home price to income ratio: 5.1:1
- Income to rent ratio: 54.7x
- Safety rating: 65/100
A. Cost of Living & Housing: As the third-largest city in South Dakota, Aberdeen offers a rare combination of urban amenities and small-town affordability, with a cost of living about 15% below the U.S. average. Their housing market provides significant value, with spacious properties for a fraction of the cost of other Midwestern cities.
B. Economy & Job Market: Economic output is anchored by NSU, providing continual jobs in education and research. Healthcare, manufacturing, and retail are other major employers. Regionally, the job market is diverse, though it can be competitive for high-paying specialized roles.
C. Access & Infrastructure: Fully connected via US-12 and US-281, it serves as a major transportation center for the region. There is a regional airport (ABR), well-regarded hospital system, and every major big-box store and grocery chain, providing all the conveniences of a much larger city.
D. Quality of Life & Culture: Life is defined by its educational institutions, cultural events, and incredible access to outdoor recreation. Northern State University attracts youthful energy, cultural events, and Division II athletics. Its safety rating is average for a city of its size.
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III. A Relocation Checklist for Your South Dakota Home
Budget for the True Cost: Account for utility costs, which can increase quickly for heating in the winter. Factor in transportation costs, especially when commuting or living in a more remote area.
Secure Employment First: Job markets can be hyper-localized. Secure employment before moving, especially if you’re not in a high-demand field like healthcare, education, or a skilled trade.
Visit in Person: If possible, visit your chosen community. Neighborhoods can change from block to block in some cities. Get a feel for the area, traffic, and the amenities firsthand.
Confirm Internet Reliability: For remote workers, this is non-negotiable. While larger towns have fast service, confirm the provider and available speeds at your specific address before signing a lease or mortgage.
Conclusion: Your Affordable South Dakota Future Awaits
From the educational hub of Aberdeen to the family-friendly neighborhoods of Rapid City, these seven communities prove that you can experience the Midwestern dream without a premium price tag. South Dakota offers a unique opportunity to build a future where your spirit for adventure and community is matched by the financial wisdom of the chosen home. By carefully considering what each of these affordable enclaves has to offer, it’s possible to find the perfect spot to plant your roots and thrive under the endless prairie sky. For those considering a different state, you might also explore the most affordable cities to live in Colorado.
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FAQs About The Most Affordable Places to Live in South Dakota
1. Is it possible to find a home under $200,000 in South Dakota? Yes, absolutely. Markets like Huron, Pierre, and Yankton regularly have numerous homes listed below $200,000. These may be pre-war homes or require renovations, but they are livable and represent an incredible value.
2. What is the biggest hidden cost of moving to South Dakota? Utilities and transportation. Winter heating bills skyrocket throughout the state. In more remote communities, gas prices and vehicle maintenance for trips to larger cities for shopping or healthcare can become a significant monthly expense.
3. Are these communities good for remote workers? It varies. Larger towns including Rapid City, Aberdeen, and Sioux Falls (not on this list but worth considering) have multiple providers with reliable high-speed internet. Remote communities may have service, but it can be slower, with data caps, and pricier. It’s essential to confirm reliable internet availability at your specific address before moving.
4. What is the property tax situation like? South Dakota has relatively low property tax rates compared to the national average. There are also favorable tax provisions for seniors and agricultural property, which can further reduce the tax burden for eligible residents, adding to the overall affordability.
5. How do I choose between these cities?
Prioritize your needs.
- For Jobs: Look at Rapid City or Aberdeen.
- For Lowest Cost: Consider Huron or Pierre.
- For Families: Rapid City and Watertown are top choices for safety and schools.
- For Retirees: Pierre and Yankton offer great value and amenities.
- For Culture & Outdoor Access: Rapid City and Aberdeen are fantastic choices.
Always research specific neighborhoods within these cities, as conditions can vary.
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