Cost of Living in Salem, IL

With a cost of living index of 65, Salem, IL is one of the most affordable cities in the country. Living here is 35% cheaper than the national average and 15% below the Illinois state average of 80. Salem is a smaller community of 7,341 residents, where everyday costs can differ substantially from nearby larger cities.

Housing costs are the biggest factor in Salem's cost of living. The median monthly rent is $752 (43% below the US median of $1,319), and the median home value sits at $99,800 (67% below the national median of $304,900). At current prices, the median home costs roughly 1.7x the median household income — well within traditional affordability guidelines.

The median household income in Salem is $57,083, which is 24% lower than the national median of $75,149. Residents spend roughly 16% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum. Lower incomes here are balanced by the significantly lower cost of living, stretching each dollar further.

Climate is another factor for anyone considering a move to Salem. The area sees an average annual temperature of 57.7°F, with summers averaging 77°F and winters around 36°F. Annual rainfall totals 43.4 inches spread over roughly 100 days.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.