Cost of Living in Watertown, SD
Population 22,859 · South Dakota · Data vintage 2023
(100 = US avg)
Watertown sits on the smaller end of the South Dakota city distribution. That scale shapes the housing market, the labor pool, and the services available to residents in ways the data below makes visible. An unemployment rate of 2.0% points to a labor market well on the tight side of the national distribution.
Geographically, Watertown lies roughly 95 miles north of the nearest major metro, Sioux Falls. Median home values run roughly 22% lower than Sioux Falls' $271,000.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Watertown
The median home value in Watertown is $212,300 — 30% below the national median of $305,000. Median rent runs $904/month, 31% lower than the national median of $1,314/month. The median household income of $62,721/year is 16% lower than the US median of $74,580. The local unemployment rate is 2.0%, below the national average of 4.8%. South Dakota charges no state income tax, a meaningful advantage for take-home pay. The climate averages highs of 53.2°F and lows of 32.7°F, with about 41.1" of annual snowfall. Overall, Watertown has a cost of living index of 69 versus the US average of 100, meaning it is 31% less expensive.
🏠 Housing
HUD Fair Market Rents by Bedroom
💰 Estimated Monthly Budget
Estimates based on median data and national averages. Actual costs vary.
🛒 Food & Groceries
National BLS average prices (2023). Local prices may vary.
🚗 Transportation
Commute Mode
⚡ Utilities
📋 Taxes
💼 Income & Employment
🎓 Education
👥 Demographics
🌤 Climate
NOAA 1991–2020 Climate Normals
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| High °F | 21 | 26 | 39 | 54 | 67 | 77 | 82 | 80 | 72 | 56 | 40 | 26 |
| Low °F | 3 | 7 | 20 | 32 | 45 | 55 | 60 | 58 | 49 | 35 | 21 | 9 |
| Precip" | 0.58 | 0.65 | 1.00 | 2.06 | 2.87 | 3.85 | 3.05 | 2.89 | 2.45 | 1.95 | 0.68 | 0.68 |
| Snow" | 6.7 | 8.9 | 5.4 | 5.2 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 1.4 | 4.5 | 8.9 |
💨 Air Quality
EPA AQS 2023 — county-level monitoring data
🏫 Schools
NCES CCD 2019 — public school district data
Frequently Asked Questions
What is the cost of living in Watertown, SD?
Watertown has a cost index of 69 (100 = national average). It is 31% below the national average.
What is average rent in Watertown, SD?
The median gross rent in Watertown is $904 per month based on 2023 Census data.
What is the average home price in Watertown?
The median home value in Watertown is $212,300 according to Zillow and Census data.
What is the median income in Watertown?
The median household income in Watertown is $62,721 per year (2023 ACS 5-year estimates).
What is the sales tax in Watertown, SD?
The combined state and local sales tax rate in Watertown is 6.1%. South Dakota has no state income tax.
Is Watertown, SD affordable?
Yes, Watertown is generally considered affordable, with a cost of living index of 69 — about 31% below the US national average of 100.
What is the weather like in Watertown?
Watertown has average high temperatures of 53.2°F and average lows of 32.7°F. Annual precipitation is 22.7". Average annual snowfall is 41.1". Data from NOAA 1991–2020 Climate Normals.
Watertown at a Glance
- Population
- 22,859
- Median Income
- $62,721
- Home Value
- $212,300
- Median Rent
- $904/mo
- Unemployment
- 2.0%
- Avg High Temp
- 53.2°F
- Sales Tax
- 6.1%
Explore county-level cost of living data
South Dakota Rankings
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