Is it cheaper to live in Fairbanks or Sioux Falls?

Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 24% below Fairbanks, AK's $1,350, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $35,000 in Sioux Falls.

Which has lower taxes, Fairbanks or Sioux Falls?

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

Fairbanks vs Sioux Falls Cost of Living 2026

Fairbanks

Alaska

$1,350/mo est.

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 $1,350 in Fairbanks, AK versus $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 24% cheaper to live in day-to-day than Fairbanks, AK, driven mainly by rent.

Median household income is $72,077 in Fairbanks, AK and $74,714 in Sioux Falls, SD — about 4% higher in Sioux Falls, SD. 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

Sioux Falls, SD

Rent

Studio

$883

$825

+7% in Fairbanks, AK

1 Bedroom

$1,076

$870

+19% in Fairbanks, AK

2 Bedroom

$1,428

$1,000

+30% in Fairbanks, AK

3 Bedroom

$2,019

$1,237

+39% in Fairbanks, AK

Buying a Home

Median Home Value

$255,700

$271,400

+6% in Sioux Falls, SD

Income

Median Household Income

$72,077

$74,714

+4% in Sioux Falls, SD

Metro Median Wage (annual)

$61,810

$47,970

+22% in Fairbanks, AK

People & Lifestyle

Median Age

28.6 yr

35.1 yr

+6.5 yr in Sioux Falls, SD

Homeownership

40.5%

60.0%

+19.5 pp in Sioux Falls, SD

Bachelor's+ (25+)

26.5%

37.4%

+10.9 pp in Sioux Falls, SD

Avg Commute

14.1 min

17.0 min

+2.9 min in Sioux Falls, SD

Crime (per 100k/yr)

Violent Crime

726.1

526.7

+27% in Fairbanks, AK

Property Crime

3,504.2

2,927.1

+16% 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

27.7°F

45.8°F

+18.1°F in Sioux Falls, SD

Annual Precipitation

10.8 in

26.4 in

+15.6 in in Sioux Falls, 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 Sioux Falls, SD

Ground Beef (lb)

$7.36

$6.77

+8% in Fairbanks, AK

Chicken (lb)

$2.01

$2.10

+4% in Sioux Falls, 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 Sioux Falls — FAQ

Is it cheaper to live in Fairbanks or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 24% below Fairbanks, AK's $1,350, mainly because of rent.
How much more do you need to earn to live in Fairbanks than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $43,000 a year in Fairbanks versus $35,000 in Sioux Falls.
Which has lower taxes, Fairbanks or Sioux Falls?: Fairbanks is taxed under Alaska's rules (no state income tax and no 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).