Cost of Living in Madison, SD

With a cost of living index of 74, Madison, SD is one of the most affordable cities in the country. Living here is 26% cheaper than the national average and in line with the South Dakota state average. Madison is a smaller community of 6,158 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Madison's cost of living. The median monthly rent is $874 (34% below the US median of $1,319), and the median home value sits at $191,400 (37% below the national median of $304,900). At current prices, the median home costs roughly 3.1x the median household income — a moderately affordable ratio by today's standards.

The median household income in Madison is $62,180, which is 17% lower than the national median of $75,149. Residents spend roughly 17% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Madison. The area sees an average annual temperature of 45.1°F, with summers averaging 70°F and winters around 19°F. Annual rainfall totals 29.6 inches spread over roughly 108 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

Everyday prices in the Sioux Falls, SD-MN (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.