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Buying a home in Sioux Falls, South Dakota

In Sioux Falls, the median value of owner-occupied homes is $328,600, Minnehaha County's effective property tax rate is 1.14%, a purchase mortgage carried a median $5,442 in total loan costs in 2025, and median gross rent is $1,035 a month.

Data as of : Census ACS 2025 1-year, Census Vintage 2024, FHFA HPI 2026Q2, Census ACS 2020-2024, HMDA 2025, HUD FY 2027. Sources

Checked on against the official sources listed at the bottom of the page.

Sioux Falls home costs, fact by fact

Calculate for Sioux Falls

If you buy

South Dakota state transfer tax

Real estate transfer fee (SDCL 43-4-21): $0.50 for each $500 of value, or fraction of $500 (0.1%). Change the price: the amount is recalculated instantly.

Price$328,600
State transfer tax$329
Share of the price0.1% of the price
Who paysThe seller

Default price: the Sioux Falls median value of owner-occupied homes, $328,600 (Census ACS 2025). Rule: Divide the declared value by $500, round up to a whole number, multiply by $0.50. The statute sets no minimum or maximum. Who pays: By law the grantor pays (SDCL 43-4-21), which is the seller in a sale; the purchase contract could shift the cost by agreement. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. South Dakota transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: South Dakota state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Sioux Falls is $328,600, according to the Census Bureau’s 2025 American Community Survey. FHFA’s all-transactions index shows prices in the Sioux Falls metro area up 2.5% between the second quarters of 2025 and 2026. The city offers repair loans to income-qualified owners and a property tax refund of up to $500 for eligible seniors and people with disabilities.

How much homes cost in Sioux Falls

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on South Dakota home prices explains the method in detail.

AreaMedian value, 2025 (ACS)Margin of error (90%)
City of Sioux Falls$328,600±$13,585
Minnehaha County$322,100±$13,170
Sioux Falls, SD-MN metro area$334,200±$10,510
South Dakota$299,100±$6,467
United States$371,100±$646

*Source: U.S. Census Bureau, ACS 1-Year Estimates 2025, table B25077.

Are Sioux Falls prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same homes. Its purchase-only metro series covers only the 100 largest metro areas, which do not include Sioux Falls, so the figures below come from FHFA’s all-transactions index (not seasonally adjusted, same quarter each year), published August 25, 2026:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Sioux Falls, SD-MN metro area+2.5%+36.3%
South Dakota+2.2%+41.1%
United States+3.0%+41.3%

Source: FHFA House Price Index, all-transactions quarterly files. Changes calculated by Payotte from the published index values.

Prices in the Sioux Falls area rose modestly over the past year, after a gain of more than a third over five years.

Closing costs at the median price

On top of the price, buyers and sellers pay closing costs: lender fees, the appraisal, recording fees and title insurance. Several of these depend on the loan and on the providers you choose, so there is no single official figure. Our guide to closing costs in South Dakota explains the rules and who usually pays each item, and our page on transfer tax in South Dakota covers the state’s tax on deeds.

Property tax in Sioux Falls

Property tax in the city depends on the assessed value and on the taxing units that cover your address. Our South Dakota property tax guide explains how the tax is calculated and how to appeal.

The city also runs a municipal property tax refund for eligible seniors and people with disabilities. According to the City of Sioux Falls:

  • The refund is 100% of the municipal property tax, up to $500.
  • You must be 65 or older, or have a disability as defined by the Social Security Act, and be approved for the state’s assessment freeze through Minnehaha or Lincoln County. You apply to the county, not the city, by April 1 each year.
  • Income must be below $56,595 for a one-person household or $66,885 for a larger household, and the home must be owner-occupied.
  • You must be current on property taxes, and the City Council must approve the program each year, so a refund is not guaranteed.

Help for buyers and owners

The City of Sioux Falls lists three homeowner programs for people with income at or below 80% of the area median: Single-Family Rehabilitation, Mobile Home Repair and Neighborhood Revitalization. The city’s table effective June 1, 2026 sets that level at $66,500 for one person and $94,950 for four. The Single-Family Rehabilitation program is a no-interest loan that you repay when you sell or stop living in the home; you must have owned the home for at least a year. For purchase help, see first-time buyer programs in South Dakota and South Dakota Housing’s limits for Minnehaha County.

South Dakota guides for Sioux Falls buyers

Frequently asked questions

What is the median home price in Sioux Falls?

The Census Bureau’s 2025 American Community Survey puts the median value of owner-occupied homes in the city of Sioux Falls at $328,600 (±$13,585). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Sioux Falls going down?

No. FHFA’s all-transactions index for the Sioux Falls metro area rose 2.5% between the second quarter of 2025 and the second quarter of 2026, and 36.3% over five years.

Does Sioux Falls have a property tax refund for seniors?

Yes. The city refunds up to $500 of municipal property tax to eligible owners aged 65 or older or with a disability, who must first be approved for the state’s assessment freeze through the county. The City Council approves the program each year.

Is the city median the same as the county median?

No. The Census Bureau’s 2025 figures list $328,600 for the city of Sioux Falls and $322,100 for Minnehaha County. The margins of error (±$13,585 and ±$13,170) are larger than the gap, so the two are statistically close.

Where can I find help buying a first home in Sioux Falls?

South Dakota Housing’s first-time buyer loans apply in Minnehaha County, with an income limit of $118,700 or $136,505 depending on household size. The city’s own programs fund repairs; see our first-time buyer page for details.

More South Dakota guides

Sources

Questions about buying a home in Sioux Falls

How much is property tax in Sioux Falls?

Homeowners in Minnehaha County pay a median $3,281 a year in property tax, 1.14% of the county median home value of $287,600 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Sioux Falls?

Home-purchase mortgages in Minnehaha County carried median total loan costs of $5,442 in 2025; half of the 1,797 loans fell between $3,070 and $7,567 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Sioux Falls?

South Dakota imposes a real estate transfer fee of $0.50 for each $500 of value, or fraction, which is 0.1% or $400 on a $400,000 sale. The statute makes the grantor, the seller, pay it, and the county register of deeds collects it at recording.

Is it cheaper to rent or buy in Sioux Falls?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Sioux Falls ($292,400) equals 23.5 years of the median gross rent ($1,035 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

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