Cost of Living in Salem, IN: Rent, Income & Home Prices

CheapRent takes 15 cents of every $1 people earn here.

🏠 Rent per month (2026)$73958% lower than U.S. average

💵 Families earn per year (2026)$60,976about $5,081/month · 30% lower than U.S. average

🔑 House price$144,70057% lower than U.S. average

Rent here is among the lowest 10% of all U.S. cities. A typical house costs under 3 years of household income, which is easy by U.S. standards.

How much money do I need?

To rent here comfortably, you should earn about $29,560 a year. That is $14 an hour at a full-time job.

Is rent cheaper than other Indiana cities?

Yes. Rent here is cheaper than in most of Indiana. It is number 4 of 132 cities from cheapest to most expensive.

Salem

$739

$522

$875

$1,043

$1,312

$1,354

$733

How much do households earn in Salem?

Under $25k

23.4%

$25k–50k

25.4%

$50k–100k

38.7%

$100k–150k

6.8%

$150k+

2.4%

Share of households by yearly income. 9.1% of households earn $100,000 or more.

Rent by apartment size in Salem

Size	Salem	U.S. average
1 bedroom	$644	$1,324
2 bedrooms	$770	$1,509
3 bedrooms	$1,163	$1,698

Median monthly rent plus utilities for all renters, by number of bedrooms.

How expensive is Salem overall?

Everyday prices in Indiana overall are 7% below the U.S. average (index 93.3, U.S. = 100).

Housing

Goods (food, clothes…)

Utilities

Other services

U.S. average

100

Source: U.S. Bureau of Economic Analysis, Regional Price Parities 2024. City-level data is not published for Salem, so the Indiana figure is shown.

Taxes and bills in Salem

🏛️ Property tax$896a year · 0.62% of home value · U.S. $3,119

⚡ Electric bill$174a month (typical) · U.S. $156

Life in Salem

Commute to work25.7 minU.S.: 26.4 min

College degree15.6%U.S.: 35.7%

Own their home73.7%U.S.: 65.2%

Below poverty line25.7%U.S.: 12.5%

Unemployment4.8%U.S.: 5.2%

Is it cheaper to rent or buy in Salem?

Renting is cheaper right now: about $265 a month less.

Renting

$739

Owning

$1,004

Owning assumes a typical $144,700 home, 10% down, a 30-year loan at 6.5% and about 1.5% a year for taxes and insurance. You would also need $14,470 for the down payment.

Frequently asked questions

What is the average rent in Salem, IN?

Renting in Salem costs a median of about $739 a month in 2026, including utilities. The Indiana median is $1,219.

How much do I need to make to live in Salem?

To keep rent under 30% of income, you need about $29,560 a year, or $14 an hour at a full-time job.

Is Salem cheap or expensive?

Salem is rated Cheap: rent takes 14.5% of the typical household income of $60,976. It ranks 4th cheapest of 132 Indiana cities we track.

How much are property taxes in Salem?

The median homeowner in Salem pays $896 a year in property taxes, about 0.62% of the median home value.

Is Salem more expensive than the national average?

Overall prices in Indiana are 7% below the U.S. average, according to the U.S. Bureau of Economic Analysis.

How much does a house cost in Salem?

The median home value in Salem is $144,700, about 2.4 times the typical yearly household income.

6,489 people live in Salem. Numbers are typical (middle) values.

Is Salem, IN expensive to live in?