CALCMONEY // HOME AFFORDABILITY // SD // RAPID CITY
How much house can you afford in Rapid City? Based on local median home prices, current SD mortgage rates, and Rapid City property tax data.
$310,000
$2,055/mo
$88,070/yr
$203,944
Monthly housing costs of $2,055 represent 38.5% of Rapid City's median gross monthly income ($5,333/mo). At 38.5%, median-income buyers in Rapid City are significantly stretched — well above the 28% guideline. A larger down payment or higher income is required.
| Median Home Price | $310,000 |
| Down Payment (20%) | $62,000 |
| Loan Amount | $248,000 |
| Monthly PI Payment | $1,642 |
| Monthly Property Tax | $284 |
| Monthly Insurance Est. | $129 |
| Total Monthly PITI | $2,055 |
| Housing Cost % of Income | 38.5% |
| Required Income (28% rule) | $88,070/yr |
| Max Affordable Home | $203,944 |
$10,850
$2,605/mo
Rapid City Home Affordability Quick Reference 2026
| Metric | Value | Notes |
|---|---|---|
| Median Home Price | $310,000 | Rapid City city median |
| Down Payment (20%) | $62,000 | Conventional loan |
| Monthly PITI | $2,055 | 6.95% rate, 30yr fixed |
| Required Income (28% rule) | $88,070 | Annual gross |
| Max Affordable Home | $203,944 | Based on median income |
| FHA Down (3.5%) | $10,850 | Minimum FHA |
| Housing Cost % of Income | 38.5% | Median income: $64,000/yr |
| Property Tax Rate | 1.1% | $3,410/yr on median home |
Monthly PITI includes principal, interest, property tax, and homeowners insurance. Estimates only.
The median home price in Rapid City is $310,000, with a local 30-year mortgage rate of 6.95%. A buyer putting 20% down carries a loan of $248,000, generating a monthly P&I payment of $1,642. Adding property taxes ($284/mo) and homeowners insurance ($129/mo) brings total monthly PITI to $2,055.
Rapid City's property tax rate of 1.1% is near the national average, adding a standard increment to monthly housing costs. On the Rapid City median home, that is $284/month, or $3,410 per year.
South Dakota has no state income tax, improving effective take-home pay for Rapid City residents and giving buyers additional capacity relative to equally-priced homes in high-tax states.
Using the 28% rule, a household earning Rapid City's median income of $64,000/year can afford up to $1,493/month in total housing costs. Based on Rapid City's mortgage rate of 6.95% and property tax rate of 1.1%, that translates to a maximum affordable home price of approximately $203,944 with 20% down on a 30-year loan.
To afford the median Rapid City home priced at $310,000, you need an annual gross income of approximately $88,070. Total monthly housing costs (principal and interest of $1,642, property taxes of $284, and insurance of $129) come to $2,055/month, which equals 28% of the required income.
At the median home price of $310,000 and median household income of $64,000, the total monthly housing cost of $2,055 represents 38.5% of gross monthly income. This is well above the standard 28% threshold, making Rapid City a challenging market for buyers at median income.
A conventional 20% down payment on the median Rapid City home of $310,000 is $62,000. An FHA loan requires just 3.5% down — $10,850 — but adds mortgage insurance of roughly $212/month, bringing total FHA payments to $2,605/month.
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