Is it cheaper to live in Houston or Rapid City?

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

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $32,000 in Rapid City.

Which has lower taxes, Houston or Rapid City?

Houston is taxed under Texas's rules (no state income tax and a 6.25% state sales tax); Rapid City under South Dakota's (no state income tax and a 4.2% state sales tax).

Houston vs Rapid City Cost of Living 2026

Houston

Texas

$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 Houston, TX versus $970 in Rapid City, SD. Overall, Rapid City, SD is roughly 29% cheaper to live in day-to-day than Houston, TX, driven mainly by rent.

Median household income is $62,894 in Houston, TX and $65,712 in Rapid City, SD — about 4% higher in Rapid City, SD. Texas has no state income tax and a 6.25% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Houston, TX

Rapid City, SD

Rent

Studio

$1,142

$533

+53% in Houston, TX

1 Bedroom

$1,156

$807

+30% in Houston, TX

2 Bedroom

$1,375

$1,156

+16% in Houston, TX

3 Bedroom

$1,664

$1,260

+24% in Houston, TX

Buying a Home

Median Home Value

$253,400

$270,000

+7% in Rapid City, SD

Income

Median Household Income

$62,894

$65,712

+4% in Rapid City, SD

Metro Median Wage (annual)

$49,410

$46,270

+6% in Houston, TX

People & Lifestyle

Median Age

34.3 yr

39.0 yr

+4.7 yr in Rapid City, SD

Homeownership

42.0%

61.6%

+19.6 pp in Rapid City, SD

Bachelor's+ (25+)

36.0%

36.4%

+0.4 pp in Rapid City, SD

Avg Commute

27.3 min

17.4 min

+9.9 min in Houston, TX

Crime (per 100k/yr)

Violent Crime

1,153.8

718.9

+38% in Houston, TX

Property Crime

4,324.9

3,795.8

+12% in Houston, TX

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

Climate

Avg Annual Temperature

70.3°F

47.1°F

+23.2°F in Houston, TX

Annual Precipitation

54.6 in

16.3 in

+38.4 in in Houston, TX

Gas

Regular Gasoline

$3.52/gal

$3.85/gal

+9% in Rapid City, SD

Area: Houston vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$1.25

—

Adult base one-way fare — Houston METRO vs — (2026).

Utilities

Electricity (¢/kWh)

15.9

15.4

+4% in Houston, TX

Natural Gas ($/MCF)

$31.89

$15.26

+52% in Houston, TX

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Rapid City, SD

Bread (lb)

$1.75

$1.66

+5% in Houston, TX

Eggs (doz)

$2.21

$3.63

+64% in Rapid City, SD

Ground Beef (lb)

$6.45

$6.77

+5% in Rapid City, SD

Chicken (lb)

$1.90

$2.10

+10% in Rapid City, SD

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (TX / SD)

6.25%

4.2%

+2.0 pp in TX

Income Tax (top rate)

None

about equal

Houston vs Rapid City — FAQ

Is it cheaper to live in Houston or Rapid City?: Rapid City, SD is cheaper. Its monthly baseline of $970 (1BR rent + utilities) runs about 29% below Houston, TX's $1,360, mainly because of rent.
How much more do you need to earn to live in Houston than in Rapid City?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $46,000 a year in Houston versus $32,000 in Rapid City.
Which has lower taxes, Houston or Rapid City?: Houston is taxed under Texas's rules (no state income tax and a 6.25% 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).