What’s the average mortgage payment in South Dakota?

According to data from Redfin and Rocket Mortgage, the average monthly mortgage payment in South Dakota is about $1,768 before property taxes and insurance. That’s lower than the national average of $2,010 per month, reflecting the state’s generally lower home prices and moderate housing costs.

Known for its wide-open landscapes, growing regional hubs like Sioux Falls and Rapid City, and a lower overall cost of living, South Dakota offers a housing market that appeals to buyers seeking affordability and stability. 

A look at South Dakota’s housing market

Based on housing data from October 2025, the median home sale price in South Dakota is $321,100 — a little over 2% lower than last year and well below the national median at $439,917. 

Here are some of the recent median sale prices from Redfin:

What influences mortgage payments in South Dakota?

Monthly mortgage payments are made up of principal, interest, taxes, and insurance, often referred to as PITI. Each of these elements can fluctuate based on market conditions, loan terms, and property location. The Rocket Mortgage^® mortgage calculator helps break these costs down so buyers can better understand how each factor impacts monthly payments.

Home price and down payment

Because home prices in South Dakota tend to be lower than the national median, buyers often start with a smaller loan balance. For example, with 20% down on a $321,100 home and a 30-year fixed mortgage at 6.5%, your estimated monthly principal and interest would be about $1,624.

Lower down payments can make buying more accessible upfront, but they typically increase monthly costs and may require private mortgage insurance (PMI) until sufficient equity is built.

Mortgage rate

Your mortgage rate determines how much interest you’ll pay over the life of the loan. It’s influenced by factors such as credit score, down payment amount, loan type, debt-to-income ratio (DTI), and state market conditions. Because interest rates can shift quickly, checking them regularly can help you understand how changes may affect your monthly payment.

Loan term

The length of your mortgage, or loan term, plays a key role in affordability. A 30-year fixed mortgage spreads payments over a longer period and keeps costs lower, while a 15-year fixed mortgage raises the monthly payment but reduces total interest paid and builds equity faster. Choosing the right loan term depends on your budget, savings goals, and long-term plans.

Property taxes and insurance

South Dakota’s property taxes are at an average rate of $2,590 annually on a median valued home of $236,800. This adds about $215 per month to your monthly payments, but this estimate can vary depending on your home’s value. 

According to Insurify, homeowners insurance costs in South Dakota are generally close to the national average, though premiums can vary depending on home size, location, and exposure to severe weather. These costs are usually less volatile than in coastal or high-risk states.

South Dakota’s mortgage payments compared to other states

Thanks to lower home values and modest taxes, South Dakota’s average mortgage payments typically fall below national averages. Even with similar interest rates, buyers often see lower monthly costs simply because homes cost less.

Compared with neighboring Midwest and Plains states, South Dakota remains competitively priced, with only modest variation in monthly payments across the region:

Highest monthly payments in South Dakota

The highest estimated monthly mortgage payments in South Dakota are usually found in areas with stronger demand or faster growth, such as parts of Minnehaha and Pennington counties. However, even the most expensive counties only come in slightly above the national average. According to Q1 2025 median sale prices from the National Association of REALTORS^®, these are the five highest average monthly mortgage payments in South Dakota:

Lowest monthly payments in South Dakota 

Counties with lower home prices, often more rural or less densely populated, tend to have the lowest estimated monthly mortgage payments, with many falling well below statewide averages. Here are the five lowest estimated monthly mortgage payments in South Dakota: 

How to calculate your mortgage payment

Mortgage payments follow a standard formula that factors in loan amount, interest rate, and loan term. If you’d like to see how changing any of these variables affects your payment, the Rocket Mortgage online mortgage calculator makes it easy to run different scenarios. Additional tools from Rocket Mortgage can also help you explore affordability and long-term costs.

Mortgage resources in South Dakota 

If you’re looking at buying a home in South Dakota, there are a number of programs for first-time home buyers to look into on Redfin. The following are other local resources that could work for your situation: 

• South Dakota First-Time Homebuyer Loan (SDHDA): A mortgage program through the South Dakota Housing Development Authority (SDHDA) offering low-interest, fixed-rate loans to first-time homebuyers and some veterans, often paired with down payment and closing cost assistance.

• South Dakota Repeat Homebuyer Program (SDHDA): Designed for buyers who have owned a home before, this program provides competitive mortgage interest rates, options for down payment and closing cost assistance, and reduced mortgage insurance premiums to make buying a subsequent home more affordable.

• Downpayment & Closing Cost Assistance (SDHDA): Available through SDHDA, this program offers eligible buyers a 3% or 5% second mortgage at 0% interest to help cover down payment and closing costs, making upfront costs easier to manage.

• GROW South Dakota Home Ownership Programs: A number of available programs for mortgage loans, down payment and closing cost assistance, direct loans, and home ownership education and counseling. 

• Homes Are Possible, Inc. (HAPI) Down Payment Assistance: A nonprofit-linked program offering down payment and closing cost support, typically as a forgivable or low-interest loan or a forgivable grant in some counties.

FAQs on the average monthly mortgage payment in South Dakota

Have more questions about the average monthly mortgage payment in South Dakota? We have answers! 

What is a good mortgage payment in South Dakota right now?

To find a “good” monthly mortgage payment in any state, you’ll want to understand what your income, budget, down payment amount, and loan type will look like. Because South Dakota has generally low home prices compared to the national average, you could find significantly lower monthly payments. Using the Rocket Mortgage home affordability calculator could help you understand how much house you can afford based on your situation. 

What’s the difference between a 15-year vs. 30-year mortgage in South Dakota?

If you want to build equity and pay off your home quickly, you’ll want to go with a shorter loan term like a 15-year loan. You will have higher monthly payments, but your equity will accrue faster, and you’ll end up paying less interest overall. A 30-year loan will keep your monthly costs lower, but you could pay much more in interest since you will be paying off your mortgage over a longer time period. 

How much income is needed to afford a home in South Dakota?

According to data from Rocket Mortgage and Redfin, the average annual household income in a median priced home in South Dakota is $107,505. The exact amount of income you need may vary significantly depending on down payment, interest rate, property taxes, and other monthly costs. Take a look at common affordability guidelines, like the 28/36 rule, and use tools like the Rocket Mortgage affordability calculator to better understand your situation. 

The bottom line on average monthly mortgage payments in South Dakota 

South Dakota’s mortgage payments are largely influenced by home prices, interest rates, loan terms, and ongoing costs like property taxes and insurance. Thanks to generally lower home values and modest tax rates, buyers often enjoy more affordable monthly payments compared with the national average.

Whether you’re purchasing your first home or relocating within South Dakota, starting the process with Rocket Mortgage can give you a clear picture of your budget, help you understand your options, and make your homebuying experience smoother.

*Methodology: Average monthly mortgage payment in a region, calculated based on average home purchase price for a fixed 30-year loan and a 52-week average interest rate of 6.68% from Freddie Mac as of August 2025.