A South Dakota mortgage payment starts with the same formula as anywhere in the country, then picks up two costs that vary sharply by state: property tax at an effective 1.02% and homeowners insurance near $1,400 a year. On a typical South Dakota home of $320,000, those two add $388 to every monthly payment before the loan costs anything. The tool below is preloaded with that home, 10% down, and a 30-year fixed rate of 6.25%.
The South Dakota housing market at a glance
| Typical home valueZillow Home Value Index, statewide | $318,000 |
|---|---|
| Effective property tax rate$3,260 a year on the example home | 1.02% |
| Typical homeowners insurance$117 a month in escrow | $1,400 |
| Median household income$6,407 a month before tax | $76,881 |
| Example payment, share of median incomeAbove the 28% housing guideline | 35.6% |
Home values: Zillow, September 2026. Income, rent, and property tax: U.S. Census Bureau ACS, 2024. Insurance is an estimate. Sources · How every state compares
A South Dakota mortgage, line by line
| Home price | $320,000 |
|---|---|
| Down payment (10%) | $32,000 |
| Loan amount | $288,000 |
| Principal & interest at 6.25% | $1,773 |
| Property tax | $272 |
| Homeowners insurance | $117 |
| PMI at 0.5%Ends after 8 yrs 10 mo | $120 |
| Total monthly paymentHeadline result | $2,282 |
| Interest over 30 yearsHeadline result | $350,376 |
| Income for a 28% housing ratioMedian South Dakota household: $76,881 | $97,783 |
What changes the payment in South Dakota
Property taxes in South Dakota
There is no state income tax, so property tax funds state government alongside sales tax; owner-occupied property receives a limited assessment credit. At the statewide effective rate of 1.02%, the example home pays $3,260 a year, $272 of every monthly payment. Local rates inside South Dakota vary well beyond the statewide figure, so take the number from the county assessor or the listing for any home you consider.
Homeowners insurance in South Dakota
Budget roughly $1,400 a year. Hail and tornado claims set premiums across the Midwest. Check roof age and deductible structure before underwriting a rehab, and expect a separate wind/hail deductible in many counties. Lenders require coverage before closing, and the premium is collected monthly in escrow, so get a quote before you make an offer.
How far a South Dakota income goes
The median South Dakota household earns about $76,881 a year. Under a 28% housing limit that supports a payment of $1,794, $488 short of the example. The South Dakota edition of the home affordability calculator solves for the price that income supports.
How to estimate your South Dakota mortgage payment
- Replace the example price with the home you are considering. The property tax figure won't update by itself; recalculate it from the listing or the county's rate.
- Enter your real down payment. Under 20% on a conventional loan, PMI is added until the balance reaches 78% of the price.
- Use a rate from a current loan estimate rather than an advertised rate, which often assumes points paid up front.
- Replace the $1,400 insurance estimate with a quote for the specific address.
- Add HOA dues if the home has them, then try extra principal to see how much interest an early payoff saves.
Methodology
Principal and interest use the standard fixed-rate amortization formula, M = L × r ÷ (1 − (1 + r)^−n). Property tax is the statewide effective rate applied to the example price; insurance is a typical statewide premium. PMI is charged at the stated annual rate until the balance first reaches 78% of the original price, when the Homeowners Protection Act requires it to be cancelled.
South Dakota figures are sourced statewide values, listed under Sources: Zillow's typical home value and Census income, rent, and property tax data. Insurance is an estimate. They are not quotes or appraisals; substitute your own numbers for a decision.
Sources
- Typical home value: Zillow Home Value Index (all homes, mid tier, seasonally adjusted), September 2026.
- Median household income: U.S. Census Bureau, American Community Survey 1-year estimates, table B19013, 2024.
- Median gross rent: U.S. Census Bureau, American Community Survey 1-year estimates, table B25064, 2024.
- Effective property tax rate: Median real estate taxes paid (B25103) ÷ median home value (B25077), Census ACS 1-year, the Tax Foundation's method, 2024.
- Homeowners insurance: Keystone estimate of a typical annual premium. Replace it with a quote for the address, 2026.
Read the full methodology, worked example, and caveats in the national Mortgage Calculator guide.
South Dakota FAQ
- What is the average mortgage payment in South Dakota?
- On a typical South Dakota home of $320,000 with 10% down and a 30-year fixed rate of 6.25%, the full payment comes to about $2,282 a month: $1,773 of principal and interest, $388 of taxes and insurance, and $120 of PMI. Your payment depends on the price, rate, and local tax bill.
- How much are property taxes on a South Dakota mortgage?
- South Dakota's effective property tax rate is about 1.02%, which adds $272 a month to the payment on a $320,000 home. There is no state income tax, so property tax funds state government alongside sales tax; owner-occupied property receives a limited assessment credit.
- How much income do I need to buy a home in South Dakota?
- To keep the example payment of $2,282 within the 28% housing guideline, a household needs about $97,783 a year of gross income, compared with a South Dakota median of $76,881. Other debts lower what a lender will approve.
- Does homeowners insurance raise my mortgage payment in South Dakota?
- Yes. Lenders collect it monthly in escrow alongside property tax. At a typical $1,400 a year, insurance adds $117 a month in South Dakota. Premiums vary by address and have risen quickly in many states, so quote it before you commit to a price.
Other state editions
Every state gets its own edition of the Mortgage Calculator, preloaded with that market's typical values, tax rates, and insurance costs: