The Real Cost of Living in Brookings, SD (2026)

The marketing materials love to throw around the Cost of Living Index (COL) for Brookings, pegging it at 88.1 against a national average of 100. It looks like a steal. It suggests you can take a standard US salary, move here, and instantly have more breathing room. But an index is an abstraction; it’s a mathematical average that smooths out the jagged edges of actual monthly expenses. If you are looking at relocating as a single earner targeting the median household income of $61,979, or the lower single-income implication of $34,088, you need to strip away the averages and look at the specific bleed costs. "Comfort" in this market isn't just about covering the roof and the groceries; it’s about surviving the property tax assessments, the heating bills during a South Dakota winter, and the lack of consumer competition that keeps retail prices sticky. To actually live here without financial anxiety, you need to understand where the index lies and where it deceives.

The Big Items

Housing: The Rent vs. Buy Trap

The first thing a relocating professional notices is the rent. A one-bedroom apartment averages $789, and a two-bedroom sits at $1007. Compared to the coastal metros, this feels like a time machine. However, this is where the "average" creates a false sense of security. The rental market in Brookings is tight, largely driven by the South Dakota State University population. This creates a seasonality to availability; if you aren't moving in May or June, your options shrink, and landlords know it. You might find the advertised average, but you’ll likely be looking at older stock with poor insulation, which leads to the second part of the equation: utilities.

Buying isn't the slam dunk it appears to be either. The median home price of $265,000 seems manageable, but the inventory is notoriously low. You aren't just buying a house; you are fighting a scarcity market. This lack of inventory drives "sticker shock" when homes sell for over asking price, forcing you to waive inspections or cover appraisal gaps. Furthermore, property taxes in Brookings County are a heavy hitter compared to the home value. You are paying for infrastructure and schools in a growing area, and that cost is baked into the monthly mortgage payment. If you are stretching your budget to get into that $265,000 home, you are walking a tightrope.

Taxes: The State Income Tax Advantage and the Property Tax Bite

South Dakota sells itself on the "no income tax" angle, and for a high earner, that is real money kept in the pocket—specifically 0% state income tax on wages. That is a massive leverage point if you are coming from a state like California or New York. However, do not let the lack of a W-2 deduction lull you into complacency. The state makes its money elsewhere, primarily through sales and property taxes. The sales tax sits at 4.5%, but local municipalities can add to that, pushing it toward 6.5% in some scenarios. It’s a nickel and dime approach to revenue generation.

The real tax "bleed" for a homeowner, however, is the property tax. South Dakota property tax rates are high relative to home values. You are looking at an effective tax rate often hovering between 1.2% and 1.4%. On a $265,000 home, that is roughly $3,180 to $3,710 per year in taxes alone—money that does not build equity, it just pays for the privilege of owning. For a single earner making $34,088, a $3,500 annual property tax bill represents over 10% of their gross income. That is a crushing burden that the COL index completely obscures.

Groceries & Gas: The "Flyover" Variance

Brookings is an island of commerce in a rural sea. This geographic reality impacts the cost of goods. Groceries are generally reasonable, tracking close to the national average, but you lose the "bang for your buck" you get in a competitive metro. There are no Trader Joe's or Aldis here; you have Hy-Vee and Walmart. When those chains set prices, there is little local competition to force them lower. You will pay roughly $4.00 for a gallon of milk and $3.50 for a dozen eggs, which is standard, but the selection of specialty goods often comes with a premium shipping markup or simply isn't available.

Gas prices in South Dakota tend to be lower than the national average due to lower state fuel taxes, often running $0.20 to $0.30 cheaper per gallon than the coast. However, the driving dynamic changes the equation. You will drive more. Everything is spread out, and winters require reliable transportation. You are burning more fuel to access services than you might in a dense city. So while the price at the pump is a win, the total volume of gas you consume to maintain your lifestyle eats into that savings.

Hidden 'Gotcha' Costs

You won't find these costs in a generic calculator. They are the expenses that hit your bank account the moment you settle in.

• Heating & Utilities: While the electric rate is a low 12.86 cents/kWh, usage is the killer. A South Dakota winter is relentless. You aren't just heating a home; you are fighting sub-zero temperatures for five months. A $789 apartment might have a heating bill that jumps from $80 in summer to $250 in January. If you are in an older rental, expect it to be higher. This isn't a luxury; it is a survival cost.
• Specific Insurance Requirements: Standard homeowners and renters insurance is one thing. Lenders in this region, however, often push for specific riders. If you are in a flood plain (and parts of Brookings are near the Big Sioux River), you are looking at mandatory flood insurance, which can add $1,000+ annually to your housing costs. Hail damage is also a massive issue in South Dakota; your auto insurance premiums will reflect the high likelihood of windshield replacement and hail damage repairs.
• HOA Fees & Parking: If you buy a condo or townhome to save money on the purchase price, watch out for the HOA fees. In Brookings, these can range from $200 to $400 a month. In a low-cost housing market, a high HOA fee is an anchor that destroys your monthly cash flow. Parking is generally free in town, but if you are near the university or downtown during events, you will pay for the convenience.
• The "Time Tax": This is the hidden cost of rural living. If you need specialized medical care, high-end retail, or specific services not found in town, you are driving to Sioux Falls. That is a 55-mile drive one way. You are paying for gas (~$15 round trip) and losing time (~2 hours). That "cheap" cost of living comes with a tax on your time and vehicle wear and tear.

Lifestyle Inflation

The cost of entry to social life in Brookings is moderate, but it adds up if you aren't watching it. Because the housing costs are low, there is a tendency to over-spend on dining and entertainment, thinking, "Well, I saved $500 on rent compared to Denver."

• A Night Out: Dinner for two at a mid-range restaurant like the Pheasant Restaurant & Lounge will run you $60 to $80 before drinks. Adding alcohol pushes it over $100. A craft beer at a local brewery is $6.00 to $7.00.
• Fitness: A standard gym membership at a place like the Brookings Recreation Center will cost roughly $45 to $55 per month for an individual.
• Coffee: A latte at a local coffee shop averages $5.00 to $5.50. If you buy one every workday, that's $110 a month—roughly 3% of the take-home pay for someone earning $34,088.
• Streaming & Internet: High-speed internet is a necessity and costs between $60 and $80 per month, as there is limited competition for providers.

The danger here is that while goods are expensive, services are priced similarly to major metros, but your income may not be. This creates a squeeze where your "cheap" housing is eaten up by the cost of simply having a life outside the house.

Salary Scenarios

The following table breaks down the financial reality of Brookings based on different income levels. "Single Income" is gross annual; "Family Income" assumes two earners or one high income.

Frugal Analysis ($34,088 Single / $68,176 Family):
This is the median income threshold. For a single person, this is technically livable because the rent is low. You can afford the $789 apartment and utilities. However, after taxes (Federal + FICA), you are taking home roughly $2,300 a month. Subtracting rent leaves you with $1,511. If you have a car payment of $300, insurance $120, and groceries $350, you are down to $741. That has to cover everything else, including saving for that property tax bill. It requires zero debt and strict budgeting. For a family earning the same combined amount, this is below the poverty line for a household and is not viable.

Moderate Analysis ($55,000 Single / $110,000 Family):
This is the "Brookings Sweet Spot." A single earner here takes home roughly $3,600 a month. They can afford the $1,007 two-bedroom without being house poor. They can save for a down payment on that $265,000 home. They can handle the $250 winter heating bill without panic. A family at this level is doing very well; they can max out a 401k, handle childcare costs, and drive reliable vehicles. This is the income level where the "low cost of living" actually translates into financial freedom.

Comfortable Analysis ($85,000 Single / $170,000 Family):
At this level, you are effectively wealthy in the context of Brookings. A single earner clearing $5,500 a month take-home can buy a significantly better home (or rent a luxury unit), aggressively invest, and absorb any hidden costs (like a $1,000 hail damage deductible) without altering their lifestyle. You are insulated from the minor price hikes in gas or groceries. You are effectively buying the "small town safety" with "big city" purchasing power.