Real Estate Investing in Salem, Kentucky (42078)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 42078 (Salem, KY)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 26.4% of homes vacant — above national norms.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Salem, KY (42078)?
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Market Analysis: 42078 Salem
Not every below-median market is a bargain. Salem's 42078 ZIP reports signals that favor experienced operators who can absorb the risk $114K pricing implies.
The 42078 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
ZIP 42078's metrics run below Livingston County's averages on price growth and tenant stability. Investors who ignore that regional gap tend to relearn it the hard way.
The 42078 ZIP's population of 1,718 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that sits at the need for careful underwriting.
The 42078 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Salem:
Property Strategy for 42078
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $78,636 | $900 | 8.2% | +7.3% | $39,318 |
| 3BR | $139,754 | $1,080 | 5.6% | +10.3% | $46,585 |
Market Trends
Home Value History (with trend line)
📊 How Does 42078 Compare?
| Metric | 42078 | Salem | Paducah, KY-IL | Kentucky |
|---|---|---|---|---|
| Home Value | $114,283 | $114,283 | N/A | $225,788 |
| 5-Year CAGR | 4.3% | 4.3% | N/A | 6.9% |
| Avg Rent | $810 | $810 | N/A | - |
| Cap Rate | 5.5% | 5.5% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 42078 (Salem, KY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $114,283 |
| Monthly Rent | $810 |
| Price-to-Rent | 11.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.5% |
| Cap Rate | 5.5% |
| 5-Year IRR | 9.8% |
📈 Home Appreciation
| 1-Year | -3.0% ▼ |
| 3-Year CAGR | +1.5% ▲ |
| 5-Year CAGR | +4.3% ▲ |
| 10-Year CAGR | +4.8% ▲ |
🏠 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 (5.5%). 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 42078
Population: 1,718
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
Frequently Asked Questions
Should investors consider Salem, KY?
Investors tracking Salem, KY will find a 3.0/5 rating supported by $114K median home values and $810/mo rents. That profile suits long-term holders targeting stable returns.
How much is rent in Salem, KY?
Investors in Salem, KY typically see rents near $810/mo per month against $114K home values - a solid setup for rental cash flow.
What is the rental occupancy rate in Salem, KY?
Salem, KY carries elevated vacancy risk. Expect reliable absorption at market rents of $810/mo.
What does house hacking look like in Salem, KY?
Salem, KY is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $114K price point reasonable to enter.
Is Salem, KY a friendly market for rental owners?
Landlord-friendliness in Salem, KY is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
You know 42078 now. You don’t know where it ranks.
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How 42078 ranks in Paducah, KY-IL
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