Is it cheaper to live in Memphis or Sioux Falls?

Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 7% below Memphis, TN's $1,110, mainly because of rent.

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

To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $35,000 in Sioux Falls.

Which has lower taxes, Memphis or Sioux Falls?

Memphis is taxed under Tennessee's rules (no state income tax and a 7% state sales tax); Sioux Falls under South Dakota's (no state income tax and a 4.2% state sales tax).

Memphis vs Sioux Falls Cost of Living 2026

Memphis

Tennessee

$1,110/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 $1,110 in Memphis, TN versus $1,030 in Sioux Falls, SD. Overall, Sioux Falls, SD is roughly 7% cheaper to live in day-to-day than Memphis, TN, driven mainly by rent.

Median household income is $51,211 in Memphis, TN and $74,714 in Sioux Falls, SD — about 31% higher in Sioux Falls, SD. Tennessee has no state income tax and a 7% state sales tax; South Dakota has no state income tax and a 4.2% state sales tax.

Memphis, TN

Sioux Falls, SD

Rent

Studio

$877

$825

+6% in Memphis, TN

1 Bedroom

$948

$870

+8% in Memphis, TN

2 Bedroom

$1,073

$1,000

+7% in Memphis, TN

3 Bedroom

$1,281

$1,237

+3% in Memphis, TN

Buying a Home

Median Home Value

$157,100

$271,400

+73% in Sioux Falls, SD

Income

Median Household Income

$51,211

$74,714

+46% in Sioux Falls, SD

Metro Median Wage (annual)

$46,890

$47,970

+2% in Sioux Falls, SD

People & Lifestyle

Median Age

34.3 yr

35.1 yr

+0.8 yr in Sioux Falls, SD

Homeownership

46.0%

60.0%

+14.0 pp in Sioux Falls, SD

Bachelor's+ (25+)

28.2%

37.4%

+9.2 pp in Sioux Falls, SD

Avg Commute

21.3 min

17.0 min

+4.3 min in Memphis, TN

Crime (per 100k/yr)

Violent Crime

2,507.6

526.7

+79% in Memphis, TN

Property Crime

6,966.3

2,927.1

+58% in Memphis, TN

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

Climate

Avg Annual Temperature

63.1°F

45.8°F

+17.3°F in Memphis, TN

Annual Precipitation

53.7 in

26.4 in

+27.3 in in Memphis, TN

Gas

Regular Gasoline

$3.94/gal

about equal

Area: Midwest (PADD 2) vs Midwest (PADD 2).

Public Transit

Base Fare (one-way)

$1.75

—

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

Utilities

Electricity (¢/kWh)

14.5

15.7

+9% in Sioux Falls, SD

Natural Gas ($/MCF)

$16.83

$10.95

+35% in Memphis, TN

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

Groceries

Milk (gal)

$4.00

$4.31

+8% in Sioux Falls, SD

Bread (lb)

$1.75

$1.66

+5% in Memphis, TN

Eggs (doz)

$2.21

$3.63

+64% in Sioux Falls, SD

Ground Beef (lb)

$6.45

$6.77

+5% in Sioux Falls, SD

Chicken (lb)

$1.90

$2.10

+10% in Sioux Falls, SD

Bananas (lb)

$0.62

about equal

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

State Taxes

Sales Tax (TN / SD)

4.2%

+2.8 pp in TN

Income Tax (top rate)

None

about equal

Memphis vs Sioux Falls — FAQ

Is it cheaper to live in Memphis or Sioux Falls?: Sioux Falls, SD is cheaper. Its monthly baseline of $1,030 (1BR rent + utilities) runs about 7% below Memphis, TN's $1,110, mainly because of rent.
How much more do you need to earn to live in Memphis than in Sioux Falls?: To keep rent near the recommended 30% of gross income, you'd want to earn roughly $38,000 a year in Memphis versus $35,000 in Sioux Falls.
Which has lower taxes, Memphis or Sioux Falls?: Memphis is taxed under Tennessee's rules (no state income tax and a 7% 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).