Income Needed to Buy a Home in South Dakota (2026)
Verdict: unaffordable — requires $98,189/year (#26 least affordable of 51 US states)
South Dakota ranks #26 of 51 US states for housing unaffordability in 2026. Buying the median home at $317,148 requires a household income of about $98,189. That's $21,308 more than the median household actually earns ($76,881) — a shortfall of 28% of typical income.
South Dakota's affordability ratio of 1.28 (required income ÷ actual median income) is 0.0% worse than the median across all 51 US states (1.28). Home prices here sit 8.5% below the cross-state median of $346,668.
An effective property tax rate of 0.99% adds $262 per month — and homeowners insurance is a real burden here at $3,152/year ($263/month), well above what most states pay. All-in, the monthly PITI (principal, interest, taxes, insurance) comes to $2,291. South Dakota has no state income tax, which effectively boosts take-home pay relative to the sticker income requirement.
South Dakota monthly cost breakdown (2026)
| Median home price | $317,148 |
| Loan amount (10% down) | $285,433 |
| Monthly principal & interest | $1,767 |
| Monthly property tax (0.99% rate) | $262 |
| Monthly homeowners insurance | $263 |
| Total monthly PITI | $2,291 |
| Required household income | $98,189 |
| Median household income | $76,881 |
Run your own numbers
These figures model the median buyer. Your rate, down payment, and debts change the answer — check your personal maximum with the Home Affordability Analyzer or build a full payment schedule in the Advanced Mortgage Calculator. Closing costs typically add 2–5% on top — estimate them with the Closing Costs Estimator.
How South Dakota compares
- Wisconsin — similar affordability (ratio 1.27, requires $98,221)
- Louisiana — similar affordability (ratio 1.26, requires $77,091)
- Texas — similar affordability (ratio 1.26, requires $100,396)
- West Virginia — among the most affordable US states (requires $48,369)
- Iowa — among the most affordable US states (requires $74,199)
See every state and province ranked in the 2026 Mortgage Affordability Index.
Frequently asked questions
How much income do you need to buy a house in South Dakota in 2026?
About $98,189 per year to afford the median-priced home of $317,148, assuming a 10% down payment and standard 28% housing-cost-to-income guideline. The median South Dakota household earns $76,881.
What is the monthly cost of owning a median home in South Dakota?
Roughly $2,291 per month, including principal and interest, property tax, and homeowners insurance.
Is South Dakota affordable at the median income?
No. The required income exceeds the median household income by $21,308 (28%), ranking South Dakota #26 least affordable of 51 US states.
Methodology & sources
Assumes 10% down, 30-year fixed at prevailing 2026 rates, 28% housing-cost-to-income guideline. Home prices from Zillow ZHVI (March 2026); incomes from Census ACS 1-Year 2024; property taxes from Tax Foundation; insurance from Bankrate state averages. Figures model the median scenario and are not financial advice. Full sources on the affordability index.