Cost of Living in Salem, IN
Population 6,484 · Indiana · Data vintage 2023
(100 = US avg)
Salem is a smaller Indiana community of around 6000 residents, where median household incomes of $51,786 and housing costs ($137,000 for a typical home) give the local cost-of-living profile a distinctly small-town shape. A poverty rate near 26% adds context to the income figures — well above the US average, and worth factoring into any comparison with cities on the coasts or in the Rockies.
Geographically, Salem is about 40 miles northwest of Louisville/Jefferson County metro government (balance), the nearest large metro. Median home values run roughly 38% lower than Louisville/Jefferson County metro government (balance)'s $222,000.
Cost Overview
Scale: 100 = US national average. Green < 90, Red > 110.
About the Cost of Living in Salem
The median home value in Salem is $136,800 — 55% below the national median of $305,000. Median rent runs $736/month, 44% lower than the national median of $1,314/month. The median household income of $51,786/year is 31% lower than the US median of $74,580. The local unemployment rate is 4.7%, below the national average of 4.8%. Indiana's top state income tax rate is 3.0% and the combined sales tax is 7.0%. Overall, Salem has a cost of living index of 49 versus the US average of 100, meaning it is 51% less expensive.
Salem has limited residential data
Detailed housing and income data is limited for this location. Here are the nearest cities with full cost of living data:
🏠 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
🏫 Schools
NCES CCD 2019 — public school district data
Frequently Asked Questions
What is the cost of living in Salem, IN?
Salem has a cost index of 49 (100 = national average). It is 51% below the national average.
What is average rent in Salem, IN?
The median gross rent in Salem is $736 per month based on 2023 Census data.
What is the average home price in Salem?
The median home value in Salem is $136,800 according to Zillow and Census data.
What is the median income in Salem?
The median household income in Salem is $51,786 per year (2023 ACS 5-year estimates).
What is the sales tax in Salem, IN?
The combined state and local sales tax rate in Salem is 7.0%. The Indiana state income tax top rate is 3.0%.
Is Salem, IN affordable?
Yes, Salem is generally considered affordable, with a cost of living index of 49 — about 51% below the US national average of 100.
Salem at a Glance
- Population
- 6,484
- Median Income
- $51,786
- Home Value
- $136,800
- Median Rent
- $736/mo
- Unemployment
- 4.7%
- Sales Tax
- 7.0%
Nearby Cities
Explore county-level cost of living data
Indiana Rankings
Similar Cost Cities
Cities in other states with comparable housing costs