Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Montana and South Dakota. Updated for 2026.
Montana and South Dakota are evenly matched across major housing cost categories. Your decision may come down to other factors like job market, climate, or lifestyle preferences. Use the calculators below to model your specific scenario.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
Buying in South Dakota saves you approximately $768/month ($9,216/year) compared to Montana, based on median home prices with identical loan terms.
South Dakota offers meaningfully lower home prices than Montana, with median prices running 31% less ($135K difference). This gap translates to both a smaller loan and lower monthly payments. First-time buyers priced out of Montana may find South Dakota far more accessible, particularly when combined with local down payment assistance programs.
Montana has a moderate property tax advantage at 0.74% versus South Dakota's 1.22%. While the rate gap of 0.48% may seem small, it translates to an annual difference of approximately $417 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $3K in savings.
Closing costs are a one-time but significant expense. Montana averages $6K in closing costs (1.5% of purchase price) while South Dakota averages $2K (0.7%). The difference is spread across title insurance, attorney fees, and recording costs rather than a single large tax. Budget for these upfront costs — they affect how much cash you need on hand at closing.
Both states offer down payment assistance for first-time buyers. Montana's MBOH Regular Bond Program provides Up to $15,000 DPA, while South Dakota's SDHDA First-Time Homebuyer offers Fixed-rate FTB loans. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: South Dakota homes cost $135K less than Montana on average. That translates to roughly $768 less per month in total housing costs if you choose South Dakota. For most buyers, this price gap is the single biggest factor — it affects your loan size, monthly payment, and how quickly you build equity.