The typical owner-occupied home in Salem is worth about $166,700, 35% below the South Dakota median of $257,400 and 50% below the national median of $332,700. Owners pay a median $1,875 a year in property taxes, about 1.12% of their home's value, higher than the South Dakota rate of 1.06%. The median household earns $74,881 a year, so the median home costs 2.2 times the median income (3.4 times for South Dakota). 68% of occupied homes here are lived in by their owners, and 46% of those owners still have a mortgage.
Salem at a glance
| Salem | South Dakota | U.S. | |
|---|---|---|---|
| Median home value | $166,700 | $257,400 | $332,700 |
| Median property tax paid per year | $1,875 | $2,724 | $3,119 |
| Property tax as a share of value | 1.12% | 1.06% | 0.94% |
| Median household income | $74,881 | $75,081 | $80,734 |
| Homes lived in by their owners | 68% | 69% | 65% |
| Owner homes with a mortgage | 46% | 54% | 61% |
| Median monthly costs, owners with a mortgage | $1,186 | $1,680 | $1,963 |
| Those costs as a share of the owners' income | 16.3% | 20.4% | 21.0% |
| Median rent | $965 | $946 | $1,413 |
| Rent as a share of renters' income | 28.4% | 25.9% | 30.6% |
| Median year homes were built | 1974 | 1980 | 1980 |
| Vacant homes | 17.4% | 10.5% | 10.1% |
| Population | 1,216 | 907,428 | 334,922,499 |
What a typical home costs per month in Salem
At this week's average 30-year rate of 7.11%, buying the median Salem home of $166,700 with 20% down costs about $1,122 a month, including property taxes and insurance. With an FHA loan and 3.5% down, it's about $1,400, because the loan is bigger and FHA adds mortgage insurance.
Lenders usually want housing costs under about 28% of gross income, which means an income of roughly $48,093 for the 20%-down payment. That payment is 18% of the median Salem household income of $74,881; at that income and 20% down, the 28% guideline points to a home of about $260,000.
The median rent here is $965 a month, so owning the median home costs about $157 a month more than renting, before you count the equity you build and any tax benefits.
| Down payment | $33,340 |
|---|---|
| Loan amount | $133,360 |
| Principal and interest | $897 |
| Property taxes (1.12% a year) | $156 |
| Homeowners insurance (our estimate, 0.5% a year) | $69 |
| PMI | $0 |
| Total per month | $1,122 |
Change the numbers in the calculator
| Down payment | $5,834 |
|---|---|
| Loan amount | $163,681 |
| Principal and interest | $1,101 |
| Property taxes (1.12% a year) | $156 |
| Homeowners insurance (our estimate, 0.5% a year) | $69 |
| FHA mortgage insurance | $74 |
| Total per month | $1,400 |
Change the numbers in the calculator
Questions about home buying in Salem
What is the median home value in Salem?
About $166,700 for owner-occupied homes, according to the Census Bureau's 2020–2024 American Community Survey.
How much are property taxes in Salem?
Homeowners pay a median $1,875 a year, which is about 1.12% of the median home value. Your bill depends on your home's assessed value and local rates.
What income do you need to buy a home in Salem?
For the median home with 20% down at 7.11%, the payment is about $1,122 a month. Keeping that under 28% of gross income takes about $48,093 a year.
More about Salem
- Mortgage Refinance in Salem
- Debt Relief in Salem
- Home Equity Loans in Salem
- Guides and quotes for mortgage refinance on our sister site, MortgageRefinance.com
Sources: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates; Freddie Mac Primary Mortgage Market Survey, week of November 12, 2026. Estimates for small places have wide margins of error. About our data