Is it cheaper to live in Fairbanks or Rapid City?

Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 28% below Fairbanks, AK's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $32,000 in Rapid City.

Which has lower taxes, Fairbanks or Rapid City?

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

Fairbanks vs Rapid City Cost of Living 2026

Fairbanks

Alaska

$1,350/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 $1,350 in Fairbanks, AK versus $970 in Rapid City, SD. Overall, Rapid City, SD is roughly 28% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $65,712 in Rapid City, SD — about 9% higher in Fairbanks, AK. Alaska has no state income tax and no state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Fairbanks, AK

Rapid City, SD

Rent

Studio

$883

$533

+40% in Fairbanks, AK

1 Bedroom

$1,076

$807

+25% in Fairbanks, AK

2 Bedroom

$1,428

$1,156

+19% in Fairbanks, AK

3 Bedroom

$2,019

$1,260

+38% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$270,000

+6% in Rapid City, SD

Income

Median Household Income

$72,077

$65,712

+9% in Fairbanks, AK

Metro Median Wage (annual)

$61,810

$46,270

+25% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

39.0 yr

+10.4 yr in Rapid City, SD

Homeownership

40.5%

61.6%

+21.1 pp in Rapid City, SD

Bachelor's+ (25+)

26.5%

36.4%

+9.9 pp in Rapid City, SD

Avg Commute

14.1 min

17.4 min

+3.3 min in Rapid City, SD

Crime (per 100k/yr)

Violent Crime

726.1

718.9

+1% in Fairbanks, AK

Property Crime

3,504.2

3,795.8

+8% 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

27.7°F

47.1°F

+19.4°F in Rapid City, SD

Annual Precipitation

10.8 in

16.3 in

+5.5 in in Rapid City, SD

Gas

Regular Gasoline

$5.21/gal

$3.85/gal

+26% in Fairbanks, AK

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

Utilities

Electricity (¢/kWh)

28.2

15.4

+46% in Fairbanks, AK

Natural Gas ($/MCF)

$17.35

$15.26

+12% in Fairbanks, AK

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

Groceries

Milk (gal)

$4.82

$4.31

+10% in Fairbanks, AK

Bread (lb)

$2.04

$1.66

+19% in Fairbanks, AK

Eggs (doz)

$2.19

$3.63

+66% in Rapid City, SD

Ground Beef (lb)

$7.36

$6.77

+8% in Fairbanks, AK

Chicken (lb)

$2.01

$2.10

+4% in Rapid City, SD

Bananas (lb)

$0.70

$0.62

+12% in Fairbanks, AK

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

State Taxes

Sales Tax (AK / SD)

None

4.2%

+4.2 pp in SD

Income Tax (top rate)

None

about equal

Fairbanks vs Rapid City — FAQ

Is it cheaper to live in Fairbanks or Rapid City?: Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 28% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Rapid City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $32,000 in Rapid City.
Which has lower taxes, Fairbanks or Rapid City?: Fairbanks is taxed under Alaska's rules (no state income tax 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).