Real Estate Investing in Salem, Alabama (36874)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 36874 (Salem, AL)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 12.9% of homes vacant — above national norms.
- High price-to-rent: Price-to-rent ratio 26.3 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Salem, AL (36874)?
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Market Analysis: 36874 Salem
The 36874 ZIP in Salem, AL is a local-operator market. Outside capital chasing a $332K entry has to pair deep knowledge with the discount.
In practical terms, the numbers look inviting — $332K purchase price, 0.0% nominal cap — the work to hit that pro forma in 36874 is substantial and deserves full respect.
ZIP 36874's metrics run below Lee County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
Who lives in 36874 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Strategy in 36874 is an operator game, not a passive one. Put differently, entry prices of $332K are inviting, the management lift is real and non-optional.
Here's what matters if you're considering buying a home in Salem:
Property Strategy for 36874
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 3BR | $280,383 | $1,520 | 3.9% | +8.5% | $93,461 |
| 4BR | $398,635 | $1,670 | 3.0% | +7.2% | $99,659 |
Market Trends
Home Value History (with trend line)
📊 How Does 36874 Compare?
| Metric | 36874 | Salem | Auburn-Opelika, AL | Alabama |
|---|---|---|---|---|
| Home Value | $331,821 | $331,821 | N/A | $231,003 |
| 5-Year CAGR | 5.7% | 5.7% | N/A | 5.6% |
| Avg Rent | $1,053 | $1,053 | N/A | - |
| Cap Rate | 2.5% | 2.5% | - | - |
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 36874 (Salem, AL). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $331,821 |
| Monthly Rent | $1,053 |
| Price-to-Rent | 26.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.8% |
| Cap Rate | 2.5% |
| 5-Year IRR | 8.2% |
📈 Home Appreciation
| 1-Year | +5.1% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +5.7% ▲ |
| 10-Year CAGR | +6.5% ▲ |
🏠 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 (2.5%). 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 36874
Population: 10,329
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 36874
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
Investor Insight: With 1,585 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How does Salem, AL stack up for property investment?
Salem, AL sits at an investability rating of 3.0/5, with median home values near $332K and average rents around $1,053/mo. That combination puts it in the significant tier for investor interest.
Which real estate strategy fits Salem, AL?
The best-fit strategy in Salem, AL is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
What is the tenant pool like in Salem, AL?
Expect a solid tenant pool in Salem, AL. The rental market absorbs $1,053/mo rents without meaningful friction.
Is vacancy a concern in Salem, AL?
Rental vacancy in Salem, AL is elevated. Investors should budget normal turnover but not chronic empty units.
Is housing expensive in Salem, AL?
Salem, AL home values average about $332K. That price point suits investors targeting rentals with $1,053/mo in monthly income.
You know 36874 now. You don’t know where it ranks.
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How 36874 ranks in Auburn-Opelika, AL
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