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City · 6,489 residents · Washington County, Indiana

Salem , Indiana

In Salem, a typical home is worth $144,700 and typical rent is $690 a month. Compared with all of Washington County, the typical home value is 16% lower, typical household income is 13% lower, and the share of households that own their home is 8 points lower.

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  • Typical home value

    $144,700

    16% below the county

    34% below Indiana

    • Salem
    • Washington
    • Indiana

  • Typical rent

    $690a month

    12% below the county

    35% below Indiana

    • Salem
    • Washington
    • Indiana

  • Typical household income

    $56,538a year

    13% below the county

    21% below Indiana

    • Salem
    • Washington
    • Indiana

  • Households that own their home

    74%

    8 points below the county

    3 points above Indiana

    • Salem
    • Washington
    • Indiana

Source: U.S. Census Bureau, Average 2020–2024

Market now, with Zillow data

Zillow data
Typical home value
$208,639
2.8% more than 12 months ago

From Zillow (ZHVI), September 2026. The Census figures above are 5-year averages (2020–2024).

Salem is in Washington County. The FHA loan limit ($541,287 for a one-unit home), the fair market rents and the help on this page are those of all of Washington County. See the county

Data updated: October 1, 2026 11 official sources

Only here

What sets Salem apart

What this place has that others do not, from public data, most unusual first.

  1. Salem has the 2nd lowest typical rent of the 132 cities in Indiana with more than 5,000 people ($690).

  2. The typical home in Salem is worth $144,700, 16% less than in Washington County as a whole ($172,200).

  3. 74% of households in Salem own their home, against 82% in Washington County.

Sources: U.S. Census Bureau (Average 2020–2024).

The homes here

Housing in Salem

What homes there are in Salem, what they cost, how that changed and how people live, from Census figures (2020–2024).

What homes there are

U.S. Census Bureau, ACS 5-year, 2020–2024

Kind of home

As in Washington County, most homes in Salem are detached houses (76%).

Year built

The typical home in Salem was built in 1967, 15 years before the typical one in Washington County.

All homes, occupied or empty. A figure the Census cannot measure precisely enough here is not shown.

Census tables: B25024, B25034, B25035, B25041

What it costs here

U.S. Census Bureau, ACS 5-year, 2020–2024

Value of owner-occupied homes
Monthly rent with utilities

HUD's 2-bedroom fair market rent for Washington County is high ($1,014): at least 84% of rents in Salem cost less than $1,000.

With a mortgage

$1,049 a month

Washington County: $1,259 a month

Without a mortgage

$420 a month

Washington County: $440 a month

Owners with a mortgage

65%

Washington County: 61%

The typical cost for an owner with a mortgage in Salem is $1,049 a month, less than in Washington County ($1,259); without one, $420.

Value: what owners think their home is worth. Rent: rent plus utilities, for homes of every size. The FHA limit is the most an FHA loan (Federal Housing Administration) lends for a one-unit home; the fair market rent (FMR) is the one HUD uses for housing vouchers.

Census tables: B25075, B25063, B25088, B25081

How it changed

U.S. Census Bureau, ACS 5-year, 2015–2019 and 2020–2024

Change since 2015–2019

The typical home value in Salem rose 75% since 2015–2019, more than in Washington County (46%).

Since 2015–2019, the typical rent in Salem did not change clearly, according to the Census.

Change between two 5-year periods that do not overlap, in each period's dollars, not adjusted for inflation.

Census tables: B25077, B25064, B19013

How people live

U.S. Census Bureau, ACS 5-year, 2020–2024

MeasureSalemWashington CountyIndianaUnited States
Rental vacancy Unreliable estimateUnreliable estimate5.6%5.5%
Homeowner vacancy Unreliable estimateUnreliable estimate0.8%0.9%
More than one person per room Unreliable estimate2.0%1.8%3.4%
People per household 2.282.482.462.53
Drive alone 73%77%76%69%
Carpool 17%14%9%9%
Public transit Unreliable estimateUnreliable estimate1%3%
Walk or bike Unreliable estimate1%2%3%
Work from home 9%7%11%15%
Other means Unreliable estimateUnreliable estimate1%2%
Typical commute Unreliable estimateUnreliable estimate20 to 29 minutes20 to 29 minutes

On average, a household in Salem has 2.28 people, fewer than in Washington County (2.48).

In Salem, 17% of workers share a car to get to work; in Washington County, 14%.

Vacancy: empty homes offered for rent or for sale. Rooms: every room in the home, not only bedrooms. Commute: the minute range of the typical worker.

Census tables: B25004, B25003, B25014, B25010, B08301, B08303

Do the math

What would you pay each month for a home in Salem?

A typical home is within reach of the typical income

We start with a typical home in Salem, worth $144,700, an FHA loan with 3.5% down and the latest average rate (7.18%). That payment would take 25% of the typical household income in Salem, which is $56,538 a year.

The calculator's FHA and conventional loan limits are those of all of Washington County.

Your numbers

Local data
$

Starts at the typical home value in Salem. Change it to the price you have in mind.

Loan type
Your credit score

Your score changes which loans apply and FHA's minimum down payment. Your real rate also depends on your credit.

Down payment
%

That is $5,065 (3.5% of the price). The usual minimum for this loan is 3.5%.

This week's average ± a quarter or half point.

Term

National average as of November 5, 2026 (Freddie Mac); your rate may be different.

Adjust advanced details

Estimated monthly payment

Local data

$1,162

at 7.18% · 30 years

Loan amount
$142,079
Total interest
$204,418
Paid off in
November 2056

Includes $2,444 FHA upfront mortgage insurance premium.

Does it fit the income?

  • Comfortable

    up to $1,319 a month

    Your payment · 25%

  • Tight

    $1,319 to $1,696 a month

  • Hard

    more than $1,696 a month

Compared with the typical household income in Salem ($56,538 a year). Reference: HUD calls paying more than 30% of income for housing a cost burden.

Show the result as
per month$1,162
Principal & interest$962
Property tax$75
Home insurance$60
FHA mortgage insurance (MIP)$64

You need at least $5,065 for the down payment, plus closing costs.

Next step

This is an estimate to give you an idea, not a loan offer. Your real payment depends on your rate, your credit, and the insurance and taxes on the home you buy.

The city and its county

Salem and Washington County

Salem is in Washington County, Indiana. The U.S. Census Bureau publishes its own numbers for the city: home values, rent, household income, how many households own their home and the property tax. They are American Community Survey estimates (average 2020–2024).

Salem's own numbers

Typical home value
$144,700
Typical monthly rent
$690
Typical yearly household income
$56,538
Households that own their home
74%
Effective property tax rate
0.62%

U.S. Census Bureau, American Community Survey (average 2020–2024).

Numbers for all of Washington County

FHA limit, one-unit home
$541,287
Conventional limit, one unit
$832,750
HUD fair market rent, 2 bedrooms
$1,014
Price change over 5 years (FHFA)
+52%
Homes in a high flood-risk zone
1.6%

HUD, FHFA and FEMA don't publish these numbers by city.

Other numbers are not published by city, only for the whole county: FHA and conventional loan limits, HUD’s fair market rents, FHFA’s price index and FEMA’s flood data. On this page, those numbers always say they are for all of Washington County.

Everything about Washington County

Buying

Buying a home in Salem

A typical home in Salem is worth $144,700: 16% below the county and 34% below Indiana. With the typical household income in Salem ($56,538 a year), a typical home costs 2.6 times what the household earns in a year.

Years of income to pay for a typical home

The typical home value divided by the typical household income for one year. The lower it is, the less buying weighs.

  • Salem 2.6 years
  • Washington 2.7 years
  • Indiana 3.0 years
  • United States 4.1 years
Source: U.S. Census Bureau, Average 2020–2024

How prices have changed in Washington County

According to FHFA’s house price index, home prices in Washington County rose 99% in the 10 years through 2025.

FHFA does not publish this index by city: these are the numbers for all of Washington County.

Period County Indiana U.S.
Last year (2025) +3.6% +4.3% +2.9%
5 years (2020–2025) +52% +53% +47%
10 years (2015–2025) +99% +95% +85%

The index follows the price of the same homes over time (sales and appraisals with Fannie Mae and Freddie Mac loans). It is not the average price of a home. FHFA considers its annual county indexes experimental. Source: FHFA, 2025 data

Salem next to Washington County, Indiana and the U.S.

Three numbers side by side. “Typical” means the median: half are above it and half below.

Typical home value
  • Salem $144,700
  • Washington $172,200
  • Indiana $218,200
  • United States $332,700
Typical monthly rent
  • Salem $690
  • Washington $780
  • Indiana $1,062
  • United States $1,413
Typical yearly household income
  • Salem $56,538
  • Washington $64,641
  • Indiana $71,957
  • United States $80,734
See the full table
Salem next to Washington County and Indiana
Measure Salem Washington County Indiana U.S.
Typical home value $144,700 $172,200 $218,200 $332,700
Typical monthly rent $690 $780 $1,062 $1,413
Typical yearly household income $56,538 $64,641 $71,957 $80,734
Households that own their home 74% 82% 71% 65%
Typical yearly property tax $896 $1,091 $1,614 $3,119
Effective property tax rate 0.62% 0.63% 0.74% 0.94%
Renters with high rent for their income 56% 44% 48% 51%

“Typical” means the median: half are above and half are below. ▲ and ▼ say whether the city is above or below Washington County. “High rent” is the Census measure: renter households that pay 30% or more of their income in rent.

Four ways to pay for a typical home in Salem

For a typical $144,700 home in Salem, at Freddie Mac's average rate (7.18% as of November 5, 2026) over 30 years. The monthly payment adds principal and interest, Salem's typical property tax, an example home insurance and mortgage insurance when it applies.

  • FHA, 3.5% down $1,162a month

    Least cash to close
    Down payment
    $5,065
    Cash to close
    $9,406
    Rate
    7.18%
    Mortgage insurance
    FHA MIP · $64

  • Conventional, 5% down $1,135a month

    Down payment
    $7,235
    Cash to close
    $11,576
    Rate
    7.18%
    Mortgage insurance
    PMI · $69

  • Conventional, 20% down, no PMI $919a month

    Down payment
    $28,940
    Cash to close
    $33,281
    Rate
    7.18%
    Mortgage insurance
    None

  • ITIN, 15% down (example) $1,053a month

    Down payment
    $21,705
    Cash to close
    $26,046
    Rate
    8.18%
    Mortgage insurance
    None

The option that asks for the least cash to close is FHA, 3.5% down.

  • Cash to close = down payment plus 3% of the price in closing costs (example).
  • Minimum score: FHA requires 580 or higher for the minimum down payment (HUD Handbook 4000.1). * Fannie Mae requires 620 when a loan is underwritten by hand; its automated system has no fixed minimum.
  • The ITIN row is an example with a rate 1 percentage point higher: ITIN loans follow no federal rule and each lender sets its own down payment and rate. Nothing in this table promises an approval.

How much house can I afford? Estimate closing costs

Taxes and floods

Two costs that change from place to place

Property tax and flood insurance raise or lower what you pay each month. Here are the numbers for Salem and for Washington County.

Property tax

Effective rate in Salem

0.62%of the home’s value each year

$896 a year for the typical owner in Salem.

  • Salem 0.62%
  • Washington 0.63%
  • Indiana 0.74%

What Indiana publishes Homestead standard deduction: the amount drops each year (Indiana Department of Local Government Finance (DLGF), Form HC10)

Exemptions and deadlines in Indiana

Flood risk in Washington County

FEMA does not publish these numbers by city: they are for all of Washington County.

Homes in the high-risk zone
1.6%
213
Of those, with NFIP insurance
2.8%
County Indiana U.S.
Homes in the high-risk zone 1.6% 2.3% 3.5%
Of those, with NFIP insurance 2.8% 17% 48%

Most homeowners insurance policies do not cover flood damage.

Look up your address on FEMA’s map

Renting

Renting in Salem

Typical rent in Salem is $690 a month: 12% below the county. In Salem, 56% of renter households pay 30% or more of their income in rent.

HUD publishes a fair market rent for all of Washington County, by unit size. To pay the 2-bedroom one ($1,014 a month) without spending more than 30% of your income, you would need to earn $19.50 an hour working full time.

HUD fair market rent for all of Washington County

What you need to earn to pay it without spending more than 30% of income, working full time.

Size Fair rent a month Hourly wage Yearly income
Studio $770 $14.81 $30,800
1 bedroom $775 $14.90 $31,000
2 bedrooms $1,014 $19.50 $40,560
3 bedrooms $1,222 $23.50 $48,880
4 bedrooms $1,333 $25.63 $53,320

Includes basic utilities. It isn't the lowest or highest rent: it's a reference point. Source: HUD, Fiscal year 2027

By ZIP code

Fair market rent by ZIP code in Salem

HUD also publishes a fair market rent for each ZIP code (Small Area FMR, fiscal year 2027). Salem is in ZIP code 47167.

For 2 bedrooms it is $1,010: $4 less than the fair market rent for Washington County ($1,014).

  • 47167 $1,010$1,220

1 of these ZIP codes crosses the city line: HUD sets the rent by ZIP code, not by city. A ZIP code counts for Salem when at least 50% of its land is inside the city or it covers at least 15% of the city (Census 2020 boundaries). Source: Small Area Fair Market Rents (HUD) Fiscal year 2027 Small Area Fair Market Rents (HUD) Source: Census Bureau ZCTA-to-place relationship file Data from 2020 data Census Bureau ZCTA-to-place relationship file

Is your rent high for your ZIP?

Low-income apartments

Low-income apartments in Salem

HUD lists 5 buildings with rents for lower incomes in Salem. These are the largest.

  • Aspen Meadows I 1017 Aspen Dr, Salem 47167 32 low-income homes · 1 bd: 8 · 2 bd: 12 · 3 bd: 12 · In service since 2002
  • Grandview Manor North 512 Grandview Dr, Salem 47167 25 low-income homes · For older adults (812) 755-4730
  • Grandview Manor South 509 Grandview Dr, Salem 47167 24 low-income homes · For older adults (812) 883-7171
  • Sycamore Hills Apts 505 Florence St, Salem 47167 24 low-income homes · 1 bd: 22 · 2 bd: 2 · In service since 1994
  • Aspen Meadows II 1017 Aspen Dr, Salem 47167 16 low-income homes · 1 bd: 8 · 3 bd: 4 · 4 bd: 4 · In service since 2003

See all 6 buildings in Washington County Source: HUD, Retrieved November 6, 2026

Free help

Help to buy or rent in Salem

You do not have to do this alone. A HUD-approved housing counseling agency helps for free or at low cost: getting ready to buy, understanding your credit, or solving a problem with your rent.

We found no HUD-approved agencies with an office in Washington County. The nearest ones are below; many serve by phone or online.

A young woman and a young man point to a line in their notes beside a laptop in a library.

HUD counseling is free or low-cost

Assistance programs in Salem

No down payment, repair or rent-help program on our list is for Salem or Washington County. The ones below are statewide in Indiana: they work in Salem the same as in the rest of the state.

Which programs do I qualify for? All programs in Indiana

  • Next Home

    Statewide in Indiana

    Indiana state agency program with down payment assistance of 2.5% or 3.5% of the price, alongside a 30-year FHA or conventional mortgage. Offered by Indiana Housing and Community Development Authority (IHCDA).

    Type not stated

    See the program Official page

  • First Step

    Statewide in Indiana

    Indiana state agency 30-year FHA or conventional mortgage for first-time buyers (or homes in designated areas), with down payment assistance as a second mortgage with no interest or payments, repaid when the first mortgage ends. Offered by Indiana Housing and Community Development Authority (IHCDA).

    Deferred

    See the program Official page

Housing counselors near Salem

The HUD-approved agencies closest to the center of Salem, in a straight line, nearest first. If one says it serves in Spanish, its card says so.

  • Blue River Services Inc

    156 Autumn Ridge Dr NW, Corydon · 24 miles away · Spanish

    Also serves in Arabic, American Sign Language (ASL), Cambodian, Cantonese, and 19 more languages.

    • Budget and credit workshops
    • Fair housing pre-purchase workshops
    • and 6 more
    812-738-8016x104

  • New Albany Housing Authority

    300 Erni Ave, New Albany · 26 miles away

    • Pre-purchase counseling
    • Homebuyer education workshops
    (812) 948-2319

  • City of Bloomington - Housing and Neighborhood Development (HAND)

    401 N Morton St, Bloomington · 46 miles away

    • Mortgage delinquency and default
    • Homelessness services
    • and 6 more
    (812) 349-3420

All counseling agencies in Indiana

Help in Spanish near Salem

1 of the 3 agencies on this list says it serves in Spanish.

Ask for service in Spanish

When you call, say “Spanish, please” or ask if someone speaks Spanish. If not, ask whether they offer an interpreter.

Housing authorities of Salem

HUD lists no housing authority with an office in Washington County. One in a neighboring county or the state’s may serve the area.

All housing agencies in Indiana Source: HUD

Cities

Nearby cities

The cities closest to Salem, with the typical home value.

Everything about Washington County Housing in Indiana

Neighboring counties

If Washington County is out of reach, look next door. Each number is that county's own.

Keep going

Guides for your next step

Short explanations, in plain language and with official sources, for buying or renting in Salem.

All guides
A mother holds her laughing daughter on a grey sofa.

Questions

Housing questions about Salem

Short answers with the numbers for Salem and all of Washington County. If your case is different, a HUD-approved counseling agency can guide you for free or at low cost.

How much does a typical home cost in Salem?

The typical home value in Salem is $144,700, according to the U.S. Census Bureau (average 2020–2024). For comparison, in Washington County it is $172,200.

How much does it cost to rent in Salem?

Typical rent in Salem is $690 a month, according to the U.S. Census Bureau. HUD’s fair market rent for 2 bedrooms in Washington County is $1,014.

What is the FHA loan limit in Salem?

Salem uses the FHA limit for all of Washington County (2026): $541,287 for a one-unit home and $1,041,125 for a four-unit home.

How much property tax do owners pay in Salem?

The typical homeowner in Salem pays $896 a year, according to the U.S. Census Bureau. That is 0.62% of the home’s value; in Washington County, the rate is 0.63%.

Where can I find free help to buy or rent in Salem?

We found no HUD-approved counseling agencies with an office in Washington County; the nearest ones are on this page. They can help you get ready to buy, with your credit, or with rent.

Sources: American Community Survey (ACS) 5-year estimates (Average 2020–2024); FHA mortgage limits (HUD) (2026 data); Conforming loan limits (FHFA) (2026 data); Fair Market Rents (HUD) (Fiscal year 2027); Small Area Fair Market Rents (HUD) (Fiscal year 2027); Census Bureau ZCTA-to-place relationship file (2020 data); HUD-approved housing counseling agencies (Retrieved November 6, 2026); Public Housing Agencies (HUD) (Retrieved November 6, 2026); Freddie Mac Primary Mortgage Market Survey (PMMS) (As of November 5, 2026); FHFA House Price Index (HPI) (2025 data); Homes with flood insurance (NFIP, FEMA) (As of August 3, 2026).