Estimate your monthly mortgage payment in South Dakota — principal & interest plus South Dakota property tax and homeowner’s insurance.
Buying a home in South Dakota: what to know
South Dakota’s typical home value is about $321,600 as of August 2026 (Zillow ZHVI), with Sioux Falls and Rapid City leading growth. There is no state income tax, and the median effective property tax rate is an even 1.00% — roughly $3,216 a year on a median-priced home. Homeowner’s insurance averages $1,756 a year (NAIC 2022 via III), reflecting hail and severe-storm risk on the northern Plains. The South Dakota Housing Development Authority pairs its low fixed-rate First-Time Homebuyer mortgages with Fixed Rate Plus assistance — 3% to 5% of the loan as a 0%-interest second mortgage for down payment and closing costs.
South Dakota mortgage facts
| Fact | Figure |
|---|---|
| 2026 conforming loan limit (1-unit) | $832,750 ($832,750 baseline in every county; South Dakota has no high-cost counties in 2026) |
| Median home price | $321,574 |
| Median effective property tax rate | 1.0% |
| Average homeowner’s insurance | $1,756/year |
Data as of October 2026. Sources: FHFA 2026 conforming limits; Zillow ZHVI Aug 2026; Tax Foundation Property Taxes by State and County 2026; NAIC 2022 HO-3 avg premium via III; SDHDA program pages; rate: 7.40% (Freddie Mac PMMS, week ending October 15, 2026)
South Dakota first-time buyer programs
- SDHDA First-Time Homebuyer Program — Low-interest, fixed-rate 30-year mortgages for eligible buyers who haven’t owned in 3 years and meet income and purchase price limits; work with SDHDA participating lenders. Official site
- SDHDA Fixed Rate Plus — 3% to 5% of the loan amount for down payment/closing costs as a 0%-interest second mortgage with no required payments (repaid at sale/refi/payoff); paired with an SDHDA first mortgage at a slightly higher rate. Official site
How to use this calculator
The calculator comes pre-filled with South Dakota’s $321,574 median home price, the state’s 1.00% effective property tax rate, and the $1,756/year average insurance premium. Set your down payment — with SDHDA’s Fixed Rate Plus you can get 3–5% of the loan covered, but remember that option carries a slightly higher first-mortgage rate, so model both scenarios. The 2026 conforming limit is $832,750 statewide; jumbo territory is rarely relevant here. Adjust the rate to your actual lender quote (2026 rates are running in the mid-6s) and note that SDHDA programs have their own county income and purchase price caps.
Worked example: a median South Dakota home
Take a median-priced South Dakota home at $321,574. With 20% down ($64,314.80), the loan amount is $257,259.20. At 7.40% (Freddie Mac PMMS, week ending October 15, 2026) on a 30-year fixed term, principal and interest come to $1,781.21/month. Add property tax of about $267.98/month (1.0% of $321,574, divided by 12) and insurance of about $146.33/month ($1,756 a year), for a total estimated payment of $2,195.52/month. Over 30 years, total interest would be about $383,976.66. Your rate, down payment, and county tax bill will move these numbers — use the calculator above with your own figures.
What is the 2026 conforming loan limit in South Dakota?
The 2026 FHFA baseline of $832,750 applies in every South Dakota county — there are no high-cost counties in the state. Loans above $832,750 are jumbo.
How does Fixed Rate Plus assistance work?
SDHDA’s Fixed Rate Plus provides 3% to 5% of the loan amount for down payment and closing costs as a 0%-interest second mortgage with no required payments — it is repaid when you sell, refinance, or pay off the first mortgage. The trade-off is a slightly higher interest rate on the first mortgage, and you must meet income limits and complete homebuyer education.
Does South Dakota offer a Mortgage Credit Certificate?
Yes — SD Housing offers an MCC, a federal income tax credit based on the mortgage interest you pay each year, which can be combined with other assistance programs. It is claimed annually on your tax return for as long as you live in the home.
How do taxes work with no state income tax?
South Dakota has no state income tax, and the median effective property tax rate is an even 1.00% (Tax Foundation 2026) — roughly $3,216 a year on the $321,574 statewide median home value. Property tax is the main local revenue source, so rates vary by county and school district.
What is the Governor’s House program?
SDHDA’s Governor’s House program sells affordable, energy-efficient homes — built through a prison rehabilitation program — at reduced prices to income-qualified buyers. It is a separate path from the standard First-Time Homebuyer mortgage program for buyers open to new construction on a budget.