When we bought our first house we realized there is a lot of things that go into the cost of a house besides the price and interest. It took a while to wrap my head around it.

The website SmartAsset.com just released their fourth annual study of the most affordable cities in America. These communities are ranked on an Affordability Index weighing property taxes, homeowners’ insurance fees and mortgage payments relative to income.

When all of these factors were combined to break down the most affordable city in South Dakota the winner of that prize is Harrisburg.

RankCityAvg. Closing CostsAnnual Property TaxAnnual Homeowner's InsuranceAvg. Annual Mortgage PaymentMedian IncomeAffordability Index
1Harrisburg, SD$2,545$2,666$1,325$7,989$77,15143.19
2Rapid Valley, SD$2,285$2,037$1,160$6,992$63,13041.32
3Huron, SD$2,570$1,786$764$4,604$44,94140.79
4Madison, SD$2,229$1,800$847$5,105$47,57940.36
5Brandon, SD$2,599$2,978$1,407$8,485$75,42439.06
6Belle Fourche, SD$2,260$1,871$894$5,388$41,34632.79
7Pierre, SD$2,508$2,368$1,268$7,646$54,86831.67
8Sioux Falls, SD$2,490$2,432$1,242$7,488$54,11031.55
9Mitchell, SD$2,333$1,962$1,004$6,055$43,98331.51
10Aberdeen, SD$2,383$2,125$1,079$6,505$46,33030.85

The most affordable city in America nationwide was Pecos, Texas, followed by Kermit, Texas and Federal Heights, Colorado.

Montevideo had the top spot in Minnesota. Oelwein was tops in Iowa and Alliance was most affordable in Nebraska.

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