Is it cheaper to live in Bozeman or Rapid City?

Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 29% below Bozeman, MT's $1,360, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Bozeman versus $32,000 in Rapid City.

Which has lower taxes, Bozeman or Rapid City?

Bozeman 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).

Bozeman vs Rapid City Cost of Living 2026

Bozeman

Montana

$1,360/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 $1,360 in Bozeman, MT versus $970 in Rapid City, SD. Overall, Rapid City, SD is roughly 29% cheaper to live in day-to-day than Bozeman, MT, driven mainly by rent.

Median household income is $79,903 in Bozeman, MT and $65,712 in Rapid City, SD — about 18% higher in Bozeman, 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.

Bozeman, MT

Rapid City, SD

Rent

Studio

$1,064

$533

+50% in Bozeman, MT

1 Bedroom

$1,214

$807

+34% in Bozeman, MT

2 Bedroom

$1,528

$1,156

+24% in Bozeman, MT

3 Bedroom

$2,057

$1,260

+39% in Bozeman, MT

Buying a Home

Median Home Value

$614,900

$270,000

+56% in Bozeman, MT

Income

Median Household Income

$79,903

$65,712

+18% in Bozeman, MT

Metro Median Wage (annual)

$54,830

$46,270

+16% in Bozeman, MT

People & Lifestyle

Median Age

28.6 yr

39.0 yr

+10.4 yr in Rapid City, SD

Homeownership

44.6%

61.6%

+17.0 pp in Rapid City, SD

Bachelor's+ (25+)

65.1%

36.4%

+28.7 pp in Bozeman, MT

Avg Commute

15.4 min

17.4 min

+2.0 min in Rapid City, SD

Crime (per 100k/yr)

Violent Crime

451.2

718.9

+59% in Rapid City, SD

Property Crime

1,808.3

3,795.8

+110% 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

45.3°F

47.1°F

+1.8°F in Rapid City, SD

Annual Precipitation

14.0 in

16.3 in

+2.3 in in Rapid City, SD

Gas

Regular Gasoline

$4.27/gal

$3.85/gal

+10% in Bozeman, 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 Bozeman, MT

Bread (lb)

$2.04

$1.66

+19% in Bozeman, MT

Eggs (doz)

$2.19

$3.63

+66% in Rapid City, SD

Ground Beef (lb)

$7.36

$6.77

+8% in Bozeman, MT

Chicken (lb)

$2.01

$2.10

+4% in Rapid City, SD

Bananas (lb)

$0.70

$0.62

+12% in Bozeman, 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

Bozeman vs Rapid City — FAQ

Is it cheaper to live in Bozeman or Rapid City?: Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 29% below Bozeman, MT's $1,360, mainly because of rent.
How much more do you need to earn to live in Bozeman than in Rapid City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $49,000 a year in Bozeman versus $32,000 in Rapid City.
Which has lower taxes, Bozeman or Rapid City?: Bozeman 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).