City Comparison

Rapid City vs Tempe

Cost of Living Comparison · 2026

Rapid City

South Dakota
98
Average
$325,000
Median Home
$1,100/mo
Median Rent
$70,900
Median Income

Tempe

Arizona
106
Above Average
$400,000
Median Home
$1,600/mo
Median Rent
$56,068
Median Income

The Verdict

7.5%

The cost gap between these cities is 7.5%, with Rapid City being the more affordable option. A $75,000 income in Rapid City has equivalent purchasing power to $81,122 in Tempe.

Category-by-Category Breakdown

Index values · National average = 100 · Lower is more affordable

Housing
91
Rapid City
114
Tempe
Groceries
102
Rapid City
100
Tempe
Utilities
87
Rapid City
96
Tempe
Transportation
102
Rapid City
103
Tempe
Healthcare
107
Rapid City
95
Tempe

Salary Equivalence

A $75,000 salary in Rapid City has the same purchasing power as $81,122 in Tempe.

Conversely, $75,000 in Tempe equals $69,340 in Rapid City.

Living in Rapid City vs Tempe

Housing Costs

Rapid City's housing index of 91 is lower Tempe's 114, translating to median home prices of $325,000 vs $400,000. The $75,000 difference in home prices means roughly $4,872 per year in additional mortgage costs at current rates. Renters face a similar gap: $1,100/mo in Rapid City compared to $1,600/mo in Tempe, a monthly difference of $500.

Grocery & Food Costs

Grocery expenses index at 102 in Rapid City and 100 in Tempe. A household spending the national average of $475/month on groceries would pay approximately $485/month in Rapid City vs $475/month in Tempe. The difference in grocery costs between these cities is relatively minor and unlikely to be a deciding factor in relocation.

Utility Expenses

Utility costs — electricity, gas, water, internet — index at 87 in Rapid City and 96 in Tempe. Monthly utility bills average approximately $348 in Rapid City vs $384 in Tempe. Utility costs are relatively comparable between these two cities.

Healthcare

Healthcare costs index at 107 in Rapid City and 95 in Tempe. This encompasses insurance premiums, doctor visit copays, dental care, and prescription costs. The 12-point gap reflects real differences in provider costs, insurance market competition, and regional healthcare infrastructure.

Income & Purchasing Power

Median household income is $70,900 in Rapid City and $56,068 in Tempe. After adjusting for local costs, purchasing-power-equivalent incomes are approximately $72,347 and $52,894 respectively. Rapid City residents enjoy stronger real purchasing power despite higher nominal wages.

Relocation Considerations

Under the standard 28% rule, a median-income household can allocate $1,654/month to housing in Rapid City vs $1,308/month in Tempe. In Rapid City, median rent of $1,100/mo fits within this budget. In Tempe, median rent of $1,600/mo pushes past the recommended limit. The biggest category-level difference between these two cities is Housing, where the gap is 23 index points — focus your budget analysis there.

Frequently Asked Questions

Rapid City is 7.5% more affordable overall with an index of 98 vs 106.
A $75,000 salary in Rapid City has equivalent purchasing power to approximately $81,122 in Tempe, based on the cost of living difference.
Rapid City's housing index is 91 with median homes at $325,000, while Tempe's is 114 with median homes at $400,000.

Moving & Relocation Resources

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