Best places to buy rental properties in South Dakota

February 28, 2022
● Written by

South Dakota

Investing in South Dakota

Though South Dakota is one of the most sparsely populated states in the US (#47), it's gained a ton of steam in the past few years as people move out of cities and look towards places with lower costs of living. Owing to low taxes and economic opportunity, South Dakota is ranked #2 for fiscal stability by the US News and World Report.

If you're looking to invest in South Dakota real estate, the Nophin team crunched the numbers and found five of best places to invest.

Statewide vacancy rates

SD Rental Vacancy Rate via Federal Reserve Bank of St. Louis

Sioux Falls, SD

Sioux Falls is the largest city in South Dakota and is ranked as the Best City for Young Professionals in 2021 by SmartAsset.

  • Population: 192,517
  • Median household income: $61,738
  • Median 1-bedroom monthly rent: $795
  • Median listing home price: $310,000

Rapid City, SD

Rapid City is known as "The City of Presidents" because of the bronze statutes representing all former, non-sitting Presidents.

  • Population: 74,703
  • Median household income: $53,760
  • Median 1-bedroom monthly rent: $800
  • Median listing home price: $339,900

Aberdeen, SD

Aberdeen is a college town home to Northern State University and Presentation College.

  • Population: 28,495
  • Median household income: $56,455
  • Median 1-bedroom monthly rent: $550
  • Median listing home price: $235,000

Brookings, SD

Brookings is South Dakota's fourth largest city and home to the South Dakota State University.

  • Population: 23,377
  • Median household income: $53,845
  • Median 1-bedroom monthly rent: $599
  • Median listing home price: $284,900

Spearfish, SD

Spearfish is known for its scenic natural surrounding and the Spearfish Canyon.

  • Population: 12,193
  • Median household income: $50,072
  • Median 1-bedroom monthly rent: $550
  • Median listing home price: $515,000

Nophin is landlord banking and software for rental properties

With FDIC-insured bank accounts and cards that seamlessly integrate with easy-to-use software, Nophin helps landlords increase returns and automate rental property finances. Check out what we offer on the Nophin homepage!


To help us determine the five best cities in all states, the Nophin team used data from several sources including the 2020 United States Census, the Department of Housing & Urban Development, Federal Reserve Economic Data (FRED), the National Association of REALTORS®, Zumper, internal data, and other reputable sources.

More posts

The Landlord's Guide to the 1031 Exchange

The Landlord's Guide to Rental Property Depreciation

The Landlord's Guide to Tenant Security Deposits

How can I achieve financial independence through real estate?

Digitally collect rent on time, every time

Search all posts
Please note: Nothing above should be construed as legal, investment, tax, nor financial advice. This content is for informational purposes only. Consult a lawyer and/or an accountant if the above is right for your personal situation.

Upgrade your rental property finances

You're on the list!
Oops, something went wrong! Please try again.