Is it cheaper to live in Aberdeen or Fairbanks?

Aberdeen, SD is cheaper. Its monthly baseline of $740 (1BR rent + utilities) runs about 45% below Fairbanks, AK's $1,350, mainly because of rent.

How much more do you need to earn to live in Aberdeen than in Fairbanks?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $23,000 a year in Aberdeen versus $43,000 in Fairbanks.

Which has lower taxes, Aberdeen or Fairbanks?

Aberdeen is taxed under South Dakota's rules (no state income tax and a 4.2% state sales tax); Fairbanks under Alaska's (no state income tax and no state sales tax).

Aberdeen vs Fairbanks Cost of Living 2026

Aberdeen

South Dakota

$740/mo est.

Fairbanks

Alaska

$1,350/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $740 in Aberdeen, SD versus $1,350 in Fairbanks, AK. Overall, Aberdeen, SD is roughly 45% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $63,715 in Aberdeen, SD and $72,077 in Fairbanks, AK — about 12% higher in Fairbanks, AK. South Dakota has no state income tax and a 4.2% state sales tax; Alaska has no state income tax and no state sales tax.

Aberdeen, SD

Fairbanks, AK

Rent

Studio

$529

$883

+67% in Fairbanks, AK

1 Bedroom

$576

$1,076

+87% in Fairbanks, AK

2 Bedroom

$824

$1,428

+73% in Fairbanks, AK

3 Bedroom

$924

$2,019

+119% in Fairbanks, AK

Buying a Home

Median Home Value

$205,500

$255,700

+24% in Fairbanks, AK

Income

Median Household Income

$63,715

$72,077

+13% in Fairbanks, AK

Metro Median Wage (annual)

—

$61,810

People & Lifestyle

Median Age

35.8 yr

28.6 yr

+7.2 yr in Aberdeen, SD

Homeownership

58.4%

40.5%

+17.9 pp in Aberdeen, SD

Bachelor's+ (25+)

33.6%

26.5%

+7.1 pp in Aberdeen, SD

Avg Commute

11.1 min

14.1 min

+3.0 min in Fairbanks, AK

Crime (per 100k/yr)

Violent Crime

275

726.1

+164% in Fairbanks, AK

Property Crime

1,421.2

3,504.2

+147% in Fairbanks, AK

FBI Crime Data Explorer. Offenses per 100,000 residents per year; agency reporting practices vary, so this is approximate.

Climate

Avg Annual Temperature

43.0°F

27.7°F

+15.3°F in Aberdeen, SD

Annual Precipitation

21.7 in

10.8 in

+10.9 in in Aberdeen, SD

Gas

Regular Gasoline

$3.85/gal

$5.21/gal

+35% in Fairbanks, AK

Area: Midwest (PADD 2) vs West Coast (PADD 5).

Utilities

Electricity (¢/kWh)

15.4

28.2

+84% in Fairbanks, AK

Natural Gas ($/MCF)

$15.26

$17.35

+14% in Fairbanks, AK

Residential, state-level averages (EIA). MCF = 1,000 cubic feet.

Groceries

Milk (gal)

$4.31

$4.82

+12% in Fairbanks, AK

Bread (lb)

$1.66

$2.04

+23% in Fairbanks, AK

Eggs (doz)

$3.63

$2.19

+40% in Aberdeen, SD

Ground Beef (lb)

$6.77

$7.36

+9% in Fairbanks, AK

Chicken (lb)

$2.10

$2.01

+4% in Aberdeen, SD

Bananas (lb)

$0.62

$0.70

+14% in Fairbanks, AK

Average prices — Midwest vs West (BLS). Regional where available, otherwise U.S. average.

State Taxes

Sales Tax (SD / AK)

4.2%

None

+4.2 pp in SD

Income Tax (top rate)

None

about equal

Aberdeen vs Fairbanks — FAQ

Is it cheaper to live in Aberdeen or Fairbanks?: Aberdeen, SD is cheaper. Its monthly baseline of $740 (1BR rent + utilities) runs about 45% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Aberdeen than in Fairbanks?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $23,000 a year in Aberdeen versus $43,000 in Fairbanks.
Which has lower taxes, Aberdeen or Fairbanks?: Aberdeen is taxed under South Dakota's rules (no state income tax and a 4.2% state sales tax); Fairbanks under Alaska's (no state income tax and no state sales tax).

Sources: US Census Bureau, ACS 5-Year (rent, income, home value, demographics); NOAA Climate Normals 1981–2010 (climate); EIA weekly retail (gas); Tax Foundation 2026 (state taxes).