Is rent cheap in South Dakota? Report shows state is one of the most affordable for renters

The median rent in South Dakota is second-lowest among the 50 states, according to a new Construction Coverage report.

South Dakota’s median rent is $1,185 a month, less expensive than in all but one state, West Virginia, according to the report, which is based on federal housing data. Still, the median rent in South Dakota has increased in recent years – in 2024, it was $1,069 a month and the cheapest of any state.

The report also compares median rents in more than 380 cities, including Sioux Falls, which ranked among the least expensive at $1,257 a month.

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The year-over-year rent increases nationwide have slowed after hitting a peak of nearly 9% in early 2023, dropping to less than 4% in late 2025, according to the report. 

“While this slowdown marks a return to a more stable environment, renters continue to face steep housing costs due to the compounding effect of previous rent hikes,” the report says.

Here are cities and states where the median rent is most and least expensive.

What states have the highest median rent?

1. California, $2,895
2. Hawaii, $2,869
3. Massachusetts, $2,595
4. New York, $2,592
5. New Jersey, $2,373
6. Washington, $2,237
7. Florida, $2,220
8. Maryland, $2,195
9. New Hampshire, $2,143
10. Connecticut, $2,127

What states have the lowest median rent?

1. West Virginia, $1,126
2. South Dakota, $1,185
3. North Dakota, $1,201
4. Mississippi, $1,202
5. Iowa, $1,212
6. Arkansas, $1,231
7. Wyoming, $1,236
8. Kentucky, $1,239
9. Kansas, $1,247
10. Missouri, $1,275

How does the median rent in Sioux Falls compare with other cities?

The median rent in the Sioux Falls metro area is $1,257 a month, which ranks 310th out of 387 metro areas included in the report.

That’s an increase from 2024, when the Sioux Falls metro area’s median rent was $1,094 a month, the report says.