Real Estate Investing in Salem, Missouri (65560)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 65560 (Salem, MO)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 14.1% 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, MO (65560)?
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Market Analysis: 65560 Salem
Investors eyeing 65560 need to respect the fundamentals at play. Home values of $189K come alongside slower price movement and elevated management overhead.
Rent of $810/mo on a $189K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 65560 sits below the stated 0.0% once reality is priced in.
On balance, 65560 offers a low basis, the region around Salem has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The 65560 ZIP's population of 13,634 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 right play in 65560 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Salem:
Property Strategy for 65560
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $116,289 | $690 | 4.3% | — | $116,289 |
| 2BR | $116,047 | $900 | 5.6% | +8.9% | $58,023 |
| 3BR | $192,027 | $1,080 | 4.0% | +9.1% | $64,009 |
| 4BR | $251,465 | $1,340 | 3.8% | +9.0% | $62,866 |
| 5BR | $279,962 | — | — | — | $55,992 |
Market Trends
Home Value History (with trend line)
📊 How Does 65560 Compare?
| Metric | 65560 | Salem | Missouri |
|---|---|---|---|
| Home Value | $188,955 | $188,955 | $254,657 |
| 5-Year CAGR | 7.0% | 7.0% | 7.0% |
| Avg Rent | $810 | $810 | - |
| Cap Rate | 3.3% | 3.3% | - |
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 65560 (Salem, MO). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $188,955 |
| Monthly Rent | $810 |
| Price-to-Rent | 19.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.1% |
| Cap Rate | 3.3% |
| 5-Year IRR | 10.4% |
📈 Home Appreciation
| 1-Year | +6.2% ▲ |
| 3-Year CAGR | +3.5% ▲ |
| 5-Year CAGR | +7.0% ▲ |
| 10-Year CAGR | +7.2% ▲ |
🏠 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 (3.3%). 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 65560
Population: 13,634
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 65560
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.
Frequently Asked Questions
What is the typical home price in Salem, MO?
Homes in Salem, MO typically sell near $189K. Prices have moved at a 0.0% 5-year CAGR, which even-keeled long-term demand.
How strong is tenant demand in Salem, MO?
Working renters make up the core of the Salem, MO tenant base. The pool is reasonable for investors targeting long-term holds.
What real estate strategy is ideal for Salem, MO?
For Salem, MO, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
Does house hacking work in Salem, MO?
House hacking works a challenging in Salem, MO. Rents of $810/mo against $189K acquisition make the strategy solid for owner-occupants.
Is Salem, MO good for landlords?
For rental operators, Salem, MO rates as landlord-friendly. The regulatory environment standard buy-and-hold operations.
You know 65560 now. You don’t know where it ranks.
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