Rent vs buy in Sioux Falls, SD
In Sioux Falls, South Dakota, the typical rent is $1,279 /mo and the typical home value is $330,625.
Over 7 years, renting is ahead by $54k
For Sioux Falls's usual rent and home value, the calculation applies today's mortgage rate and assumes a 20% down payment. No break-even happens within 30 years.
How opinions and math are presented This opinion is clearly labelled, with the math shown. The values are estimates rather than quotes. The stamp changes when you change a number.
- Ahead with renting
- $54k after 7 years
- Break-even point
- 30+ years owning never catches up sooner
- Actual cost of ownership
- $2,976 /mo year 1, against $1,279 rent
Change my numbers
The stamp draws on typical rent and home value figures from Sioux Falls's market. Your rent, price and time period may change the result.
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Is it cheaper to rent or buy in Sioux Falls?
Over 7 years, renting costs $53,916 less, including the money returned to you when you sell. In every year shown, renting's net cost is lower than owning's. Within 30 years, owning still doesn't catch up.
The renting option. The owning option. Net cost to date, organized by year.
Average rent compared with mortgage payment in Sioux Falls
Rent and mortgage payments don't cover every cost. Here are all monthly expenses for year 1, based on Sioux Falls's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,279 | All of it, every month |
| Mortgage payment | $1,803 | $1,589 of it is interest in year 1 |
| Property tax | $320 | 1.16% of the value a year |
| Insurance | $117 | Census median for the city |
| Upkeep | $276 | 1% of the value a year |
| Owning, cash out | $2,515 | $214 of it builds equity |
| Lost return on the down payment | $537 | How much the cash would earn at 8.3% each year |
| Buying costs, spread out | $138 | 3.5% of the price over 7 years |
| True cost of owning | $2,976 | Cash paid out, minus the equity portion, plus the two amounts listed above |
The verdict for Sioux Falls rests on these numbers.
- Typical home valueZillow ZHVI, September 2026
- $330,625
- Typical rentZillow ZORI, September 2026
- $1,279 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, South Dakota, 1995 to 2025
- 4.5% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Sioux Falls
- 1.16% of value
- Home insuranceCensus ACS 2020-2024, Sioux Falls
- $117 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would flip the Sioux Falls verdict?
Each line shows where the 7-year Sioux Falls result changes, with all other factors remaining the same.
Renting is better when
- Home prices grow by less than 6.4% annually, using 4.5% as South Dakota's long-run rate.
- For this outcome, the mortgage rate stays above 4.32%.
- For a home like this, monthly rent is less than $1,860. Here, the typical rent is $1,279.
- If you move at any point during the next 30 years, the cost of owning never catches up at these figures.
Buying comes out ahead when
- Home prices increase by more than 6.4% a year.
- You get a mortgage rate under 4.32% locked in (right now it's 7.24%).
- If you rented the same home, you'd pay more than $1,860 a month.
How Sioux Falls compares with the other 812 cities
| Measure | Sioux Falls | Median city |
|---|---|---|
| Typical home value | $330,625 | $422,451 |
| Typical rent | $1,279 /mo | $1,837 /mo |
| Price-to-rent ratio | 21.5 (#263 of 813) | 18.5 |
| Home prices, last 10 years | 5.7% a year | 6.2% a year |
| Rents, last 5 years | 4.1% a year | 4% a year |
| Property tax | 1.16% | 0.87% |
| Households that rent | 40% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other South Dakota cities
- Rent. Rapid City, SD. Renting comes out ahead by $52k.