Living Cost Compare
Ann Arbor

Michigan

$1,630/mo est.

vs
Sioux Falls

South Dakota

$1,030/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,630 in Ann Arbor, MI versus $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 37% cheaper to live in day-to-day than Ann Arbor, MI, driven mainly by rent.

Median household income is $81,089 in Ann Arbor, MI and $74,714 in Sioux Falls, SD — about 8% higher in Ann Arbor, MI. Michigan has a top state income tax rate of 4.25% and a 6% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Ann Arbor, MI
Sioux Falls, SD

Rent

Studio
$1,274
$825
+35% in Ann Arbor, MI
1 Bedroom
$1,389
$870
+37% in Ann Arbor, MI
2 Bedroom
$1,692
$1,000
+41% in Ann Arbor, MI
3 Bedroom
$1,812
$1,237
+32% in Ann Arbor, MI

Buying a Home

Median Home Value
$435,100
$271,400
+38% in Ann Arbor, MI

Income

Median Household Income
$81,089
$74,714
+8% in Ann Arbor, MI
Metro Median Wage (annual)
$55,380
$47,970
+13% in Ann Arbor, MI

People & Lifestyle

Median Age
27.7 yr
35.1 yr
+7.4 yr in Sioux Falls, SD
Homeownership
45.6%
60.0%
+14.4 pp in Sioux Falls, SD
Bachelor's+ (25+)
77.7%
37.4%
+40.3 pp in Ann Arbor, MI
Avg Commute
19.9 min
17.0 min
+2.9 min in Ann Arbor, MI

Crime (per 100k/yr)

Violent Crime
311
526.7
+69% in Sioux Falls, SD
Property Crime
1,744.5
2,927.1
+68% in Sioux Falls, SD

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

Climate

Avg Annual Temperature
47.7°F
45.8°F
+1.9°F in Ann Arbor, MI
Annual Precipitation
32.8 in
26.4 in
+6.4 in in Ann Arbor, MI

Gas

Regular Gasoline
$3.85/gal
$3.85/gal
about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)
23.0
15.4
+33% in Ann Arbor, MI
Natural Gas ($/MCF)
$19.72
$15.26
+23% in Ann Arbor, MI

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

Groceries

Milk (gal)
$4.31
$4.31
about equal
Bread (lb)
$1.66
$1.66
about equal
Eggs (doz)
$3.63
$3.63
about equal
Ground Beef (lb)
$6.77
$6.77
about equal
Chicken (lb)
$2.10
$2.10
about equal
Bananas (lb)
$0.62
$0.62
about equal

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

State Taxes

Sales Tax (MI / SD)
6%
4.2%
+1.8 pp in MI
Income Tax (top rate)
4.25%
None
+4.3 pp in MI

Ann Arbor vs Sioux Falls — FAQ

Is it cheaper to live in Ann Arbor or Sioux Falls?
Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 37% below Ann Arbor, MI's $1,630, mainly because of rent.
How much more do you need to earn to live in Ann Arbor than in Sioux Falls?
To keep rent near the recommended 30% of gross income, you'd want to earn roughly $56,000 a year in Ann Arbor versus $35,000 in Sioux Falls.
Which has lower taxes, Ann Arbor or Sioux Falls?
Ann Arbor is taxed under Michigan's rules (a top state income tax rate of 4.25% and a 6% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% 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).