Want South Dakota’s wide-open spaces and low taxes without Pierre’s rising prices? Don’t give up on the dream. You can afford a house in the Mount Rushmore State if you know where to look.
Your perfect home could be a family-friendly house in Huron or a starter home in Sioux Falls, South Dakota’s largest and fastest-growing hub. If you’re retiring, look at homes for sale in Madison to enjoy a low-cost capital lifestyle, with median home prices under $310,000.
After assessing hundreds of cities, we’ve ranked the 10 most affordable places to live in South Dakota to help you find a home that fits your budget.
Cheapest Places to Live in South Dakota in 2026
| City | Median Household Income | Median Home Value | Population | Unemployment Rate | Poverty Rate |
|---|---|---|---|---|---|
| Huron | $57,702 | $168,439 | 14,462 | 3.0% | 11.1% |
| Winner | $52,500 | $187,274 | 2,921 | 2.2% | 27.9% |
| Aberdeen | $62,684 | $214,774 | 28,210 | 1.9% | 13.0% |
| Madison | $62,756 | $220,319 | 6,097 | 3.0% | 14.8% |
| Vermillion | $47,813 | $224,384 | 11,915 | 2.7% | 26.2% |
| Mitchell | $51,763 | $229,007 | 15,659 | 2.9% | 17.6% |
| Yankton | $60,180 | $241,997 | 15,534 | 1.7% | 8.0% |
How We Ranked the Most Affordable Places to Live in South Dakota
To identify the cheap places to live in South Dakota, we carried out an in-depth analysis using multiple reliable data sources and indicators of affordability.
Data Sources
- Median Home Prices: We used Houzeo’s South Dakota Housing Market report and double-checked the numbers with state housing authorities like the South Dakota Housing Development Authority (SDHDA).
- Median Rent: We sourced rent data from C2ER’s national Cost of Living Index, verified quarterly for accuracy.
- Overall Cost of Living: We evaluated 6 key categories—housing, groceries, utilities, transportation, healthcare, and miscellaneous—from C2ER and Houzeo’s Cost of Living in South Dakota Calculator, benchmarking against the U.S. average of 100.
We studied housing data from 2022 to 2025 to identify cities that remained affordable over time, not just during short dips in prices. Furthermore, each city’s data was also cross-checked with HUD and state economic reports.
All our information is up to date as of 2025, ensuring you receive the most current insights.
Affordability Scoring
We applied a straightforward scoring system prioritizing essentials:
- Median Home Price (40%)
- Median Rent (35%)
- Cost of Living (25%)
This way, we can clearly show which South Dakota cities give you the best value for your money. You can also check out our score breakdown to see how each city was ranked.
Image credits: All blog images are sourced from Freepik.
7 Cheapest Places to Live in SD
The annual population growth of 11.5% since 2010 is reflective of people’s intention to move to South Dakota. If you’re considering shifting to the Mount Rushmore State, here are some cities that offer affordable living options:
1. Huron
| 🟢 Cost of Living Compared to National Average | 22.9%⬇️ |
| 🏡 Median Home Price | $168,439 |
| 💲 Median Rent | $700 |
| 🌅 Known For | Splash Central Waterpark |
Huron is an affordable place to live in South Dakota. Its median house rent ranges from $700 – $850. It also offers affordable utilities which are 3.9% lower than the national average.
Huron is renowned for its scenic beauty. Situated in east-central South Dakota along the James River, the city is part of the state’s Glacial Lakes and Prairies region.
» Homes for Sale in Huron, SD: Find your dream home in this city.
2. Winner
| 🟢 Cost of Living Compared to National Average | 17.5%⬇️ |
| 🏡 Median Home Price | $187,274 |
| 💲 Median Rent | $875 |
| 🏞️ Known For | Winner Drive-In Theatre |
Winner is one of the most budget-friendly rental destinations in South Dakota with an average home rent ranging from $100 – $942. It also offers affordable grocery which is 2.8% lower than the national average.
Winner holds historical significance as it was established as a city along the Chicago, Milwaukee, St. Paul, and Pacific Railroad in the late 19th century. This railroad played a crucial role in the development and growth of Winner, shaping its early economy and infrastructure.
» Homes for Sale in Winner, SD: Browse thousands of property listings in Winner.
3. Aberdeen
| 🟢 Cost of Living Compared to National Average | 11.6%⬇️ |
| 🏡 Median Home Price | $214,774 |
| 💲 Median Rent | $836 |
| 🏖️ Known For | Dacotah Prairie Museum |
With rental costs below the national average, Aberdeen stands as one of the most affordable cities to live in South Dakota. The house rent price is between $100 – $3,000.
As the third-largest city in South Dakota, Aberdeen is known for its thriving agricultural industry. It is also famous for educational institutions like Northern State University and Presentation College, as well as cultural attractions such as the Dacotah Prairie Museum.
4. Madison
| 🟢 Cost of Living Compared to National Average | 17.1%⬇️ |
| 🏡 Median Home Price | $220,319 |
| 💲 Median Rent | $1,000 |
| 🏖️ Known For | Lake Herman State Park |
Madison offers budget-friendly living with a median rent that is $1,000 lower than the national median. With transportation costs being 37% lower than the national average, the city stands out as one of the most inexpensive places to live in South Dakota.
Madison’s affordable food, health, housing, and transportation facilities make the city one of the cheapest places to live in America. The city is renowned for being the home of Dakota State University, known for its strong programs in computer science and cybersecurity.
Try South Dakota’s Mortgage Calculator to see how much house you can afford. Get an instant amortization schedule and a detailed cost breakdown for free💲.
5. Vermillion
| 🟢 Cost of Living Compared to National Average | 19.7%⬇️ |
| 🏡 Median Home Price | $224,384 |
| 💲 Median Rent | $689 |
| 🎨 Known For | University of South Dakota (USD) |
Often referred to as the ‘Waséoyuze,’ Vermillion’s cost of living is 9% lower than the state average. The utility expenses are 6.3% lower than the national average.
Vermillion is renowned for its vibrant community, diverse cultural offerings, and rich history. It is home to the University of South Dakota, providing educational opportunities and contributing to the town’s lively atmosphere.
» Homes for Sale in Vermillion, SD: Browse through thousands of properties in Vermillion.
6. Mitchell
| 🟢 Cost of Living Compared to National Average | 20.5%⬇️ |
| 🏡 Median Home Price | $229,007 |
| 💲 Median Rent | $850 |
| 🏫 Known For | Corn Palace |
The house rent in Mitchell is between $100 – $2,200. With an average household income of $51,763, you can comfortably live in this city.
Mitchell hosts a range of cultural events throughout the year. This includes the Corn Palace Festival, which showcases local talent, music, and arts, drawing visitors from near and far.
» Homes for Sale in Mitchell, SD: Find a home in one of the cheapest places to live in South Dakota.
7. Yankton
| 🟢 Cost of Living Compared to National Average | 17.3%⬇️ |
| 🏡 Median Home Price | $241,997 |
| 💲 Median Rent | $525 |
| 🖼️ Known For | Lewis and Clark Recreation Area |
Yankton is indeed one of the best places to live in South Dakota, with a slight year-over-year median home price decline of 2.9% in December 2023. The annual expenditure on food for an individual amounts to $3,185. This makes it one of the most budget-friendly options across the country.
Yankton is renowned for its rich Native American history, including its significance to the Lewis and Clark expedition. Additionally, Yankton city is known for its diverse outdoor recreational activities, such as fishing, boating, and hiking.
» Homes for Sale in Yankton, SD: Get yourself a home in this city.
Pro Tip If you’re looking for something in the southern region, Pierre could be a great option. From neighborhoods near the State Capitol to Fort Pierre across the river, you’ll find a wide range of affordable houses in Pierre with strong rental potential.
Sioux Falls (safety score of 89) and Rapid City (safety score of 83) are the cheapest and safest cities in South Dakota. They offer low crime rates, family-friendly neighborhoods, and a lively, welcoming lifestyle.
Top 3 Cheapest Cities to Live in South Dakota for Young Adults
When looking for the least expensive city to live in South Dakota, you want more than just cheap rent. You want good jobs, a fun lifestyle, and a city where you can thrive. These South Dakota cities deliver all three, with affordable housing and growing job markets.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Sioux Falls | Sioux Falls offers big-city opportunities across finance, healthcare, tech, and agribusiness in areas like downtown and All Saints. Young professionals engage through Young Professionals Network events at places like the Falls Park farmers market. Strong job growth and affordable homes make it easier to build wealth here. |
| 2. | Brookings | Home to South Dakota State University and a thriving ag-tech scene near Medary Avenue, the city combines research opportunities with a lively college-town vibe at bars like The Steel Inn. There’s also an increase in homes for sale in Brookings, and rental rates are below the state average. |
| 3. | Madison | Madison’s tech and education sectors at Dakota State University near downtown create strong career options in cybersecurity. Local young professional events at places like the Madison American Legion support networking amid a vibrant Main Street. Affordable houses for sale in Madison ensure that you don’t spend all your hard-earned money on housing. |
Top 3 Inexpensive Places to Live in South Dakota for Families
South Dakota is a favorite among families for its wide-open spaces, no state income tax, and affordable housing. These three cities offer low living costs and top-notch schools.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Huron | Families enjoy Lake Thompson access and educational spots like the Huron Event Center. Outdoor recreation and pocket-friendly homes for sale in Huron make this city a great place for families. |
| 2. | Aberdeen | Aberdeen offers strong family programs through its schools and community events. This significantly reduces child-rearing costs. Similar social programs and cheap homes for sale in Aberdeen make this city family-friendly. |
| 3. | Pierre | Home to the South Dakota Discovery Center & Museum, families enjoy year-round entertainment. If you’re looking for riverfront properties and community playgrounds, cheap homes for sale in Pierre are your best bet. |
3 Best Affordable Places to Live in South Dakota for Retirees
South Dakota is a retiree’s haven. In these cities, you can find affordable homes, accessible healthcare, and safe communities. There are also plenty of outdoor activities like kayaking, hiking, and picnics to enjoy a comfortable, active lifestyle.
| Rank | City | Why It’s Great for Retirees |
|---|---|---|
| 1. | Watertown | In Watertown, retirees have access to Prairie Lakes Healthcare System for rehab and heart services. Peaceful trails and picnic spots at Lake Pelican make it ideal for nature lovers. Affordable homes for sale in Watertown ensure a quiet, low-cost retirement. |
| 2. | Vermillion | Vermillion offers a relaxed lifestyle near Yankton Community Hospital for medical care. Senior communities host wellness events at The Center for Active Generations, and you can find homes for sale in Vermillion while enjoying river trails close to nature. |
| 3. | Madison | Madison provides senior living at Peaceful Pines with independent options and low costs around $3,500/month. Retirees enjoy Lake Herman State Park trails for gentle walks. Affordable homes for sale in Madison support a peaceful retirement. |
3 Hidden Costs to Consider in South Dakota
Even in the cheapest South Dakota cities to live in, home prices are only part of the cost. After severe blizzards and Missouri River flooding, insurance premiums have risen sharply. So, factor in hail, wind, and flood coverage along with property taxes when looking for the cheapest area to live in South Dakota.
Hail & Severe Weather Insurance: Many homeowners now pay around $2,800 yearly, with tornado alley areas like Sioux Falls exceeding $4,000. Inland cities like Aberdeen and Madison generally have lower rates around $2,200.
Flood Insurance: Standard homeowners insurance doesn’t include flood damage. Policies from FEMA’s NFIP or private insurers now average $1,200–$2,100 per year near the Missouri River in cities like Yankton, rising about 15% annually under FEMA’s Risk Rating 2.0.
Property Taxes: South Dakota property taxes typically range from 1.14% to 1.31% of assessed home value—highest in the nation—varying by county like Brown (Aberdeen) at 1.29% and adding significantly to yearly ownership costs.
Quick Tip South Dakota’s Property Tax Exemption for owner-occupied homes allows up to 50% off the first $200,000 of your primary residence’s assessed value (max $100,000 reduction), which can significantly lower costs. However, it does not apply to second homes or investment properties.
Savings Breakdown: Cheapest Cities in South Dakota to Live In
Housing costs vary dramatically across South Dakota. Winner residents save $1,515 monthly compared to Sioux Falls and $1,120 compared to Pierre. The following table breaks down these savings by median home price, monthly mortgage, property tax, insurance, and total monthly costs.
| City | Median Home Price | Avg. Monthly Mortgage | Insurance/taxes | Estimated Monthly Cost for a Single Person | Monthly Savings vs. Sioux Falls |
|---|---|---|---|---|---|
| Winner | $131,000 | $775 | $225 | $1,000 | $1,515 |
| Hermosa | $200,000 | $1,190 | $270 | $1,460 | $1,120 |
| Pierre | $275,000 | $1,635 | $310 | $1,945 | $570 |
Affordable Living Beyond South Dakota
Not sure if the cheapest places in South Dakota to live will fit your budget? Here are a few neighboring states that offer affordable housing, strong job markets, and stunning natural environments, just like South Dakota.
1. Affordable Housing in Nebraska
Nebraska offers low housing costs with median home prices around $260,000 and rents at $1,100—below national averages.
- Grand Island: Homes around $210,000 with rent under $950 make Grand Island one of Nebraska’s most affordable communities. Families and ag workers thrive near the Stuhr Museum of the Prairie Pioneer, which offers living history exhibits and pioneer village recreations. The strong agricultural community supports local events at the Fonner Park racetrack and fairgrounds, providing family-friendly entertainment year-round.
- Kearney: Homes around $225,000 with rent from $1,000 provide excellent value near the University of Nebraska-Kearney. Young professionals enjoy the thriving education and healthcare sectors, while families appreciate the Fort Kearny State Recreation Area for camping and trails along the Platte River.
- Lexington: Homes near $190,000 with rent from $900 offer rural charm at low costs. The community centers around meatpacking jobs at Tyson Foods and family outings at Plum Creek Park with playgrounds, ball fields, and picnic shelters.
2. Jobs in North Dakota
North Dakota ranks high for job growth with energy, agribusiness, and healthcare booming. Cost of living is 8% lower than national average.
- Minot: Homes around $220,000 with rent near $950 support careers in oil, healthcare, and Minot Air Force Base. The Magic City offers young professionals networking through the Minot Area Development Corporation and family stability with strong schools.
- Williston: Homes around $260,000 with rent near $1,200 fuel the energy boom. Workers in oil fields and logistics enjoy high wages, while community events at the Williston Basin Speedway provide recreation for all ages.
- Dickinson: Homes from $240,000 with rent $1,000–$1,300 attract energy and healthcare professionals earning strong wages. Dickinson State University adds education jobs, and the Dakota Dinosaur Museum engages families with interactive exhibits.
3. Natural Environment
Minnesota delivers lakes, prairies, and forests for outdoor enthusiasts.
- Worthington: Median home price $185,000 with rent from $900 creates a lakeside fishing community. Lake Okabena offers boating, swimming at the beach, and ice fishing, complemented by the Prairie Lakes Municipal Airport for aviation enthusiasts.
- Marshall: Median home price around $210,000 with rent from $950 features vibrant small-town parks. Camden Park provides playgrounds, splash pad, and trails, while the Redwood River offers kayaking and wildlife viewing year-round.
- Fairmont: Homes around $195,000 and rent from $925 make Fairmont one of Minnesota’s most affordable spots. Families love its Chain of Lakes—five connected lakes perfect for fishing, boating, kayaking at Gomsrud Park, and swimming at Budd Lake’s sandy beach. With 29 parks including Lincoln Park playgrounds, disc golf, and miles of scenic trails through 400 acres of green space, Fairmont offers accessible nature year-round.
Want to cast a wider net? Beyond Nebraska, North Dakota, and Minnesota, explore the cheapest places to live in the US where your dollar stretches even further.
Where Is the Cheapest Place to Live in South Dakota?
Winner, Henry, and Hermosa are the most affordable cities to live in South Dakota. These areas offer more than low prices; they also provide steady job markets, plenty of recreation, and a cost of living 18% lower than the national norm.
Moving to South Dakota also offers valuable tax advantages, with no state income tax and property taxes averaging 1.14% after exemptions. Whether you’re relocating or buying your first home, you can browse listings, compare prices, and make offers online.
What is the cheapest place to live in South Dakota?
The cheapest place to live in South Dakota is Huron. It offers affordable transportation, which is 40.1% lower than the national average.
» 7 Cheapest Places to Live in South Dakota: Find out the other cheapest places to live in South Dakota!
Is South Dakota the cheapest place to live in?
No, it is not. The median home value is $290,043. If you're looking for cities with affordable housing and a low cost of living, you can try your luck in some of these cheapest places in America.
