Total monthly cost of ownership
Cost to Own a Home in Salem, Indiana
A $137,000 home here costs
$1,212per month, all in, with 20% down at today's 7.24% 30-year fixed rate. By the 28% rule that takes a household income of about $52,000 a year.
A standard mortgage calculator would have told you $747. The real number is $465 higher every month, 62% more than the payment most buyers budget for.
Compare Washington County with anywhere in America · full county breakdown
Where every dollar goes
Only the first line is a mortgage payment. Change any assumption above and every figure below recalculates.
Salem against Washington County and Indiana
| Measure | Salem | Washington County |
|---|---|---|
| Median home value | $136,800 | $162,400 |
| Median property tax | $848 | $1,058 |
| Effective tax rate | 0.620% | 0.651% |
| Median gross rent | $736 | $760 |
| Population | 6,484 | 28,167 |
The weather behind that power bill
Salem sits in Washington County, which averages a high of 86.6°F in its hottest month and a low of 24.3°F in its coldest, with 46.92" of precipitation a year and 32% of it in a single three-month stretch. That climate drives 1,157 cooling and 4,637 heating degree days, which is what sets the $153 electricity line above.
See the full climate breakdown for Washington County , month by month temperatures, rainy season timing, snowfall and heating and cooling costs.
Other cities in Washington County
Full Washington County cost breakdown · Every county in Indiana
Talk to someone who works this market
These are Salem averages. What one specific house costs to own, or what it would sell for today, depends on the street and the condition of the place. We will connect you with one licensed local agent who works Salem every week. Free, no obligation, and we never sell your details to a list.
Common questions
How much does it cost to own a home in Salem?
A $137,000 home in Salem, Indiana costs approximately $1,212 per month with 20% down at 7.24%. That is $747 principal and interest, $71 property tax, $58 homeowners insurance, $221 utilities and $114 set aside for maintenance.
What is the property tax rate in Salem?
Salem has an effective property tax rate of 0.620%, based on a median home value of $136,800 and median real estate taxes of $848. That is lower than the Washington County average of 0.651%.
What is the average home price in Salem?
The median owner-occupied home value in Salem, Indiana is $136,800, against $162,400 across Washington County.
Is it cheaper to rent or buy in Salem?
Median gross rent in Salem is $736 a month, against $1,212 to own the median home all in. Renting costs less month to month here, though renting builds no equity.
What salary do you need to buy a home in Salem?
Using the standard 28% rule, housing costs at no more than 28% of gross income, buying the median home in Salem, Indiana at today's rate takes a household income of roughly $52,000 a year. That covers the full $1,212 monthly cost, not just the mortgage payment.
Sources & methodology
- Median home value, real estate taxes, gross rent and population for Salem, US Census Bureau, American Community Survey ACS 2023 5-Year, place-level tables.
- Homeowners insurance, NAIC average premium for Indiana.
- Electricity price, EIA Electric Power Monthly Table 5.6.A.
- Mortgage rate, Freddie Mac PMMS, refreshed weekly.
- Maintenance (1%/yr) and water and sewer ($68/mo) are national estimates. Every assumption above is editable.