Real Estate Investing in Salem, Connecticut (06420)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 06420 (Salem, CT)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Salem, CT (06420)?
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Market Analysis: 06420 Salem
The 06420 ZIP covers a section of Salem that demands careful diligence. Prices near $479K look accessible, but the work to make a deal cash flow is real.
Rent of $1,755/mo on a $479K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 06420 sits below the stated 0.0% once reality is priced in.
In the broader CT picture, 06420 is a reminder that not every low-priced ZIP is a value-add opportunity — some are simply distressed, and the difference matters.
Who lives in 06420 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Strategically, 06420 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Salem:
Property Strategy for 06420
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $306,258 | $1,950 | 4.6% | +9.9% | $153,129 |
| 3BR | $429,731 | $2,510 | 4.2% | +9.7% | $143,244 |
| 4BR | $550,373 | $3,120 | 4.1% | +9.8% | $137,593 |
Market Trends
Home Value History (with trend line)
📊 How Does 06420 Compare?
| Metric | 06420 | Salem | Norwich-New London, CT | Connecticut |
|---|---|---|---|---|
| Home Value | $479,370 | $479,370 | N/A | $425,784 |
| 5-Year CAGR | 8.3% | 8.3% | N/A | 9.3% |
| Avg Rent | $1,755 | $1,755 | N/A | - |
| Cap Rate | 2.9% | 2.9% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 06420 (Salem, CT). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $479,370 |
| Monthly Rent | $1,755 |
| Price-to-Rent | 22.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.4% |
| Cap Rate | 2.9% |
| 5-Year IRR | 11.2% |
📈 Home Appreciation
| 1-Year | +10.9% ▲ |
| 3-Year CAGR | +8.3% ▲ |
| 5-Year CAGR | +8.3% ▲ |
| 10-Year CAGR | +7.3% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.9%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 06420
Population: 4,323
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 06420
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Frequently Asked Questions
How much should I expect to pay for a home in Salem, CT?
Typical homes in Salem, CT go for around $479K. The 5-year CAGR of 0.0% steady price movement.
Do rentals sit vacant long in Salem, CT?
Rental vacancy in Salem, CT is elevated. Investors should budget normal turnover but not chronic empty units.
How does Salem, CT stack up for property investment?
Salem, CT sits at an investability rating of 3.0/5, with median home values near $479K and average rents around $1,755/mo. That combination puts it in the substantial tier for investor interest.
Is Salem, CT suited for a house hack?
For house hackers, Salem, CT is a challenging. The $1,755/mo rent on a unit helps defray the mortgage on a $479K property.
Is the tenant base reliable in Salem, CT?
The renter base in Salem, CT is reasonable for the $1,755/mo price point. Screening well and pricing to market typically yields reliable tenants.
You know 06420 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 06420 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 06420 ranks in Norwich-New London, CT
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Community Ratings
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