Cost of Living in Salem, IA

With a cost of living index of 64, Salem, IA is one of the most affordable cities in the country. Living here is 36% cheaper than the national average and 7% below the Iowa state average of 71. Salem is a small community of 363 residents.

Housing costs are the biggest factor in Salem's cost of living. The median monthly rent is $850 (36% below the US median of $1,319), and the median home value sits at $75,000 (75% below the national median of $304,900). At current prices, the median home costs roughly 1.3x the median household income — well within traditional affordability guidelines.

The median household income in Salem is $59,583, which is 21% lower than the national median of $75,149. Residents spend roughly 17% 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 51.9°F, with summers averaging 74°F and winters around 28°F. Annual rainfall totals 37.9 inches spread over roughly 114 days. Cold winters mean higher heating bills, an important cost-of-living consideration.

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.