Income needed to buy a house in South Dakota
A median-priced home in South Dakota costs $289,600. With 20% down you'd need about $82,476 a year, $5,595 more than the state's median household income of $76,881. South Dakota ranks #19 of 51 for the lowest income needed.
Income needed: $82,476 a year
Defaults: state median home value and property tax (Census ACS 2024), median homeowners insurance paid by owners with a mortgage (Census ACS 2024; quotes vary by home and ZIP code), 30-year rate 6.95% (Freddie Mac, week of 2026-09-17).
You'd need a household income of about $82,476 a year to buy a $289,600 home in South Dakota with $57,920 down.
Based on lenders' 28/36 rule: housing costs under 28% of gross income, all debt under 36%.
| Monthly cost | Amount |
|---|---|
| Principal & interest | $1,534 |
| Property tax | $245 |
| Homeowners insurance | $146 |
| Total | $1,924 |
Monthly cost by down payment
| Down payment | Cash down | Monthly cost | Income needed |
|---|---|---|---|
| 5% | $14,480 | $2,327 | $99,712 |
| 10% | $28,960 | $2,225 | $95,346 |
| 20% | $57,920 | $1,924 | $82,476 |
Under 20% down includes estimated private mortgage insurance of 0.5% of the loan per year.
Buying in South Dakota: what's different
- Transfer tax
- 0.1% transfer fee (seller)
- On the median home
- $290
- Homestead break
- Owner-occupied school levy
- First-time buyer help
- South Dakota Housing
- Transfer and recording taxes. The seller pays a real estate transfer fee of 50 cents per $500 of value (0.1%). On the median South Dakota home ($289,600), that's about $290 in transfer fee.
- Property tax breaks for your home. There's no homestead exemption, but a home classified as owner-occupied pays a lower school general fund levy. Apply with the county director of equalization by March 15.
- First-time buyer help. South Dakota Housing offers the First-Time Homebuyers program through participating lenders. Check its site for income and price limits.
Checked against official sources on September 25, 2026. Local transfer taxes and exemptions vary, so confirm with the county before you close.
Home prices in South Dakota's largest metro area
| Metro area | Income needed | Median home value | Median household income |
|---|---|---|---|
| Sioux Falls, SD | $94,802 | $331,400 | $82,509 |
The median home in the Sioux Falls area is worth $331,400, 14% more than the statewide median, and takes about $94,802 a year to buy with 20% down.
Metro medians from Census ACS 2024 cover the whole metro area, including any part in a neighboring state. Income needed: 20% down at 6.95%, the metro's median property tax and its main state's median homeowners insurance for homes with a mortgage (Census ACS 2024), under the 28% rule.
What makes owning in South Dakota less expensive than most states
- Home prices: the median value of $289,600 is 20% below the U.S. median of $360,600.
- Property tax: about 1.02% of value a year ($245 a month on the median home).
- Insurance: owners with a mortgage paid a median $1,750 a year for homeowners insurance in 2024 (Census ACS). Premiums have risen in most states since then, and they vary a lot by home and ZIP code, so get quotes.
- Mortgage rate: each 1-point rise in rates adds roughly $158 a month on this loan.
7 states need at least 20% less income to buy their median home. States with a similar income requirement:
- Wisconsin $84,055
- Nebraska $80,722
- Tennessee $85,806
- Pennsylvania $78,509
- South Carolina $77,726
- North Carolina $87,708
Frequently asked questions
How much do you need to make to buy a house in South Dakota?
About $82,476 a year for the median home of $289,600 with 20% down at 6.95%. With 10% down it's about $95,346.
What is the property tax rate in South Dakota?
The median South Dakota homeowner pays $2,940 a year, about 1.02% of the median home value (Census ACS 2024). Rates vary by county and city.
Is it cheaper to rent or buy in South Dakota?
Median rent is $999 a month, while owning the median home costs about $1,924 a month with 20% down, before maintenance. Renting affordably takes about $39,960 a year under the 30% rule.