Is it cheaper to live in Billings or Rapid City?

Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 7% below Billings, MT's $1,040, mainly because of rent.

How much more do you need to earn to live in Billings than in Rapid City?

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $32,000 in Rapid City.

Which has lower taxes, Billings or Rapid City?

Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Rapid City under South Dakota's (no state income tax and a 4.2% state sales tax).

Billings vs Rapid City Cost of Living 2026

Billings

Montana

$1,040/mo est.

Rapid City

South Dakota

$970/mo est.

Monthly estimate = 1BR rent + electricity + gas

A one-person monthly baseline (1BR rent plus typical utilities) runs $1,040 in Billings, MT versus $970 in Rapid City, SD. Overall, Rapid City, SD is roughly 7% cheaper to live in day-to-day than Billings, MT, driven mainly by rent.

Median household income is $71,855 in Billings, MT and $65,712 in Rapid City, SD — about 9% higher in Billings, MT. Montana has a top state income tax rate of 5.65% and no state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Billings, MT

Rapid City, SD

Rent

Studio

$877

$533

+39% in Billings, MT

1 Bedroom

$889

$807

+9% in Billings, MT

2 Bedroom

$1,102

$1,156

+5% in Rapid City, SD

3 Bedroom

$1,398

$1,260

+10% in Billings, MT

Buying a Home

Median Home Value

$311,800

$270,000

+13% in Billings, MT

Income

Median Household Income

$71,855

$65,712

+9% in Billings, MT

Metro Median Wage (annual)

$49,060

$46,270

+6% in Billings, MT

People & Lifestyle

Median Age

38.1 yr

39.0 yr

+0.9 yr in Rapid City, SD

Homeownership

64.8%

61.6%

+3.2 pp in Billings, MT

Bachelor's+ (25+)

37.0%

36.4%

+0.6 pp in Billings, MT

Avg Commute

16.7 min

17.4 min

+0.7 min in Rapid City, SD

Crime (per 100k/yr)

Violent Crime

750.2

718.9

+4% in Billings, MT

Property Crime

3,123.5

3,795.8

+22% in Rapid City, SD

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

Climate

Avg Annual Temperature

48.2°F

47.1°F

+1.1°F in Billings, MT

Annual Precipitation

13.7 in

16.3 in

+2.6 in in Rapid City, SD

Gas

Regular Gasoline

$4.27/gal

$3.85/gal

+10% in Billings, MT

Area: Rocky Mountain (PADD 4) vs Midwest (PADD 2).

Utilities

Electricity (¢/kWh)

15.1

15.4

+1% in Rapid City, SD

Natural Gas ($/MCF)

$10.12

$15.26

+51% in Rapid City, SD

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Billings, MT

Bread (lb)

$2.04

$1.66

+19% in Billings, MT

Eggs (doz)

$2.19

$3.63

+66% in Rapid City, SD

Ground Beef (lb)

$7.36

$6.77

+8% in Billings, MT

Chicken (lb)

$2.01

$2.10

+4% in Rapid City, SD

Bananas (lb)

$0.70

$0.62

+12% in Billings, MT

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

State Taxes

Sales Tax (MT / SD)

None

4.2%

+4.2 pp in SD

Income Tax (top rate)

5.65%

None

+5.7 pp in MT

Billings vs Rapid City — FAQ

Is it cheaper to live in Billings or Rapid City?: Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 7% below Billings, MT's $1,040, mainly because of rent.
How much more do you need to earn to live in Billings than in Rapid City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $36,000 a year in Billings versus $32,000 in Rapid City.
Which has lower taxes, Billings or Rapid City?: Billings is taxed under Montana's rules (a top state income tax rate of 5.65% and no state sales tax); Rapid City 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).