South Dakota
2026 Cost of Living Report

The 5 Cheapest Places
to Live in South Dakota

We analyzed housing markets, tax rates, and daily expenses across 10 cities to maximize your budget.

#1 Value Pick
Aberdeen
Lowest Cost Index
Cheapest Big City
Aberdeen
Best metro area value
Avg 1BR Rent
$760/mo
In top 5 affordable cities
#1
Aberdeen
Cost Index
89.5
1BR Rent
$760
Median Income
$64k
#2
Brookings
Cost Index
89.5
1BR Rent
$789
Median Income
$62k
#3
Watertown
Cost Index
89.5
1BR Rent
$760
Median Income
$63k
#4
Mitchell
Cost Index
89.5
1BR Rent
$760
Median Income
$56k
#5
Yankton
Cost Index
89.5
1BR Rent
$734
Median Income
$69k

2026 Scientific Ranking: Best Places to Live in South Dakota

Methodology Brief

This 2026 Ocity ranking of South Dakota’s top ten cities is the result of a rigorous, weighted algorithm designed to quantify livability. We analyzed three core data pillars: Safety (40% weight), Affordability (30% weight), and Economic Output (30% weight). Safety was determined by the violent crime rate per 100,000 residents. Affordability was calculated using median rent for a one-bedroom apartment. Economic Output was measured by median household income. Each city was scored, normalized, and ranked to produce a definitive, data-driven hierarchy. Population data was included for contextual scale but did not directly influence the composite score.

Top 3 Winners Deep Dive

Rank #1: Pierre
Pierre secures the top position through a statistically significant convergence of safety and economic efficiency. As the state capital, it operates with a violent crime rate of 400/100k, matching the majority of the list but offering a more contained population of 14,008, which often correlates with manageable municipal resources. The decisive factor is its superior income-to-cost ratio. With a median income of $74,053—the highest in the dataset—residents enjoy the greatest purchasing power, particularly when paired with a rent of $760. This combination yields the highest net disposable income, making Pierre a high-yield environment for financial stability without sacrificing safety.

Rank #2: Rapid City
Rapid City achieves the second rank by balancing scale and economic vitality. While its violent crime rate mirrors Pierre and Yankton at 400/100k, its larger population (79,409) indicates a robust urban infrastructure. The city’s median income of $70,094 remains highly competitive, placing it in the top tier of economic output. Its rent of $886 is the highest among the top three, which slightly dampens its affordability score. However, the city’s strong income base offsets this cost, securing its position as a premier destination for those seeking metropolitan amenities with a safety-optimized profile and solid earning potential.

Rank #3: Yankton
Yankton claims the third position as the most affordability-optimized city in the top tier. It matches the dataset’s standard safety profile with a violent crime rate of 400/100k and posts a robust median income of $69,071. Its key differentiator is cost efficiency: Yankton offers the lowest one-bedroom rent in the top three at $734. This creates a potent economic advantage, allowing for greater savings or investment on a slightly lower income than Pierre. For residents prioritizing financial efficiency without compromising on safety or economic opportunity, Yankton represents a statistically superior value proposition.

The 'Hidden Gem'

Rank #6: Watertown
Watertown emerges as the definitive data-driven "hidden gem" of the 2026 ranking, offering the optimal balance of high income and low cost outside the top three. It shares the dataset’s standard safety metric of 400/100k. Its financial profile is compelling: a median income of $62,721 is 18.2% higher than the #10 city, Huron, while its rent of $760 is identical. This creates a powerful value axis. When comparing Watertown’s income-to-rent ratio against cities with similar costs (e.g., Aberdeen, Brookings, Spearfish, Mitchell), Watertown’s income is decisively higher, maximizing discretionary spending power. It delivers 90% of the economic output of the top cities at a comparable cost, making it the highest-yield option for cost-conscious professionals.

Full Rankings Table

Rank City Population Median Income Violent Crime Rate (per 100k) Rent (1BR)
1 Pierre 14,008 $74,053 400 $760
2 Rapid City 79,409 $70,094 400 $886
3 Yankton 15,501 $69,071 400 $734
4 Sioux Falls 206,405 $70,925 456 $884
5 Aberdeen 28,297 $63,715 400 $760
6 Watertown 22,859 $62,721 400 $760
7 Brookings 23,710 $61,979 400 $789
8 Spearfish 12,551 $59,731 400 $760
9 Mitchell 15,637 $56,374 400 $760
10 Huron 14,347 $51,556 400 $760

Note: Sioux Falls is penalized in the ranking due to a violent crime rate of 456/100k, which is 14% higher than the standard rate of the other nine cities, despite its competitive income.

📈 Cost Breakdown

📊 Top 5 Ranking

🎯 Elite Tier Comparison

Frequently Asked Questions

What is the best place to live in South Dakota?

Based on our 2026 analysis of safety, affordability, and economic opportunity, Aberdeen ranks as the #1 best place to live in South Dakota. Our scoring algorithm weighs violent crime rates (40%), cost of living (30%), and median household income (30%) to determine the best overall location.

What is the safest city in South Dakota?

Aberdeen has the lowest violent crime rate among major cities in South Dakota, making it the safest option for families and individuals prioritizing security. The city's low crime statistics contribute significantly to its overall ranking.

What is the most affordable place to live in South Dakota?

Aberdeen offers the best value for residents in South Dakota, with a cost of living index below the state average. Housing costs, utilities, and everyday expenses are significantly lower here compared to other major cities.

Which city in South Dakota has the highest salaries?

Pierre boasts the highest median household income in South Dakota, making it ideal for career-focused professionals. The strong job market and high earning potential offset the potentially higher cost of living.

How are the best places to live rankings calculated?

Our rankings use a weighted algorithm: Safety Score (40%) based on FBI violent crime data, Affordability Score (30%) based on cost of living indices, and Prosperity Score (30%) based on median household income from Census Bureau data. Each city receives a composite score out of 100.