Total monthly cost of ownership
Cost to Own a Home in Salem, Indiana
A $137,000 home here costs
$1,179per month, all in — with 20% down at today's 6.66% 30-year fixed rate.
A standard mortgage calculator would have told you $704. The real number is $475 higher every month — 67% more than the payment most buyers budget for.
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 $163 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
Common questions
How much does it cost to own a home in Salem?
A $137,000 home in Salem, Indiana costs approximately $1,179 per month with 20% down at 6.66%. That is $704 principal and interest, $71 property tax, $58 homeowners insurance, $231 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 $1,179 to own the median home all in. Renting costs less month to month here, though renting builds no equity.
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.