Real Estate Investing in Salem, Iowa

Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.

1 ZIP codes • Population: 845 • Henry County

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Should you buy in Salem, IA? Our answer, based on the numbers below.

🏠 For Homebuyers
MIXED
Grade C (55/100)

Mixed — values have been flat. OK for long-horizon buyers, less attractive if you may need to sell soon.

📈 For Investors
WEAK
2.0 / 5 (33/100)

Structural challenges here. The numbers may look cheap but operational risk is high. Only for experienced, hands-on investors.

⚠️ Risks to Know
1 flag
  • Flat appreciation: Values have barely moved over 5 years (0.0% CAGR).

What’s happening in Salem, IA?

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2.0/ 5

Investability

Citywide average

0.0/ 5

Appreciation

Long-term value growth

5.0/ 5

Landlord Climate

Regulatory friendliness

🏦 30-yr Fixed Rate: 6.76% as of Sep 10 Source: Freddie Mac PMMS
Avg Investability
Avg Home Value $228,679
Avg Monthly Rent $855
ZIP Codes 1

Investing in Salem Real Estate

With a sizable population across 1 ZIPs, Salem shows the kind of tepid fundamentals that keep most out-of-state capital on the sidelines.

A 2.0 rating and a 5-year CAGR of 0.0% are the kinds of numbers that warrant real local underwriting, not spreadsheet tourism. Salem is in that category.

Rents in Salem at $855/mo have struggled to keep pace with cost increases, and vacancy has risen in pockets — a dynamic that compresses realized returns well below headline cap rates.

A an established population with $N/AK household income profile is what makes Salem a challenging rental market — the tenant base is present, but the affordability math is tight.

A great house in the wrong ZIP is still a bad deal — screen every market by cash flow & cap rate.
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Best ZIP codes in Fort Madison-Keokuk, IA-IL-MO

Salem is part of this metro. Every ZIP in it, ranked. Free.

Cash Flow → Appreciation → Affordable →

Landlord Ground Truth

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Avg Home Value
$228,679
Avg Monthly Rent
$855
1% Rule
✗ Below
Landlord Friendly (IA)

ZIP Codes in Salem, IA

Screen every ZIP in Salem

Filter Salem’s ZIPs by cap rate, vacancy, appreciation and 30+ more criteria, and export your shortlist to CSV — with the Investor plan ($19/mo).

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Frequently Asked Questions About Salem, IA

What is the best play in Salem, IA?

For Salem, IA, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.

What is the average monthly rent in Salem, IA?

Rent in Salem, IA is around $855/mo. The resulting rent-to-value relationship with $229K pricing is reasonable for most investor models.

Is housing expensive in Salem, IA?

Salem, IA home values average about $229K. That price point suits investors targeting rentals with $855/mo in monthly income.

Does Salem, IA favor landlords or tenants?

Rental owners in Salem, IA deal with a landlord-friendly legal framework. Most standard eviction processes run on reasonable timelines.

Do landlords face vacancy issues in Salem, IA?

Rental vacancy in Salem, IA is elevated. Investors should budget normal turnover but not chronic empty units.

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