Rent vs buy in Salem, OR
In Salem, Oregon, the typical rent is $1,611 /mo and the typical home is $432,418.
Over 7 years, renting comes out ahead by $48k
These figures use Salem's typical rent and home value, plus 20% down. Today's mortgage rate also applies. The break-even year is 16.
Clearly labelled opinion, with the math shown. These are estimates, not quotes. The stamp updates whenever a number changes.
- Renting is ahead by
- $48k after 7 years
- Break-even point
- Year 16 when owning catches up
- The true cost of owning
- $3,740 /mo year 1, against $1,611 rent
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Is it cheaper to rent or buy in Salem?
Including money returned when you sell, renting costs $48,464 less over 7 years. For the first 15 years, renting costs less. In year 16, owning catches up.
Renting costs. Owning costs. Net cost so far, for each year.
Salem: average rent compared with mortgage payment
Rent and mortgage payments don't tell the full story. At Salem's typical price, here are all monthly costs for year 1.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,611 | All of it, every month |
| Mortgage payment | $2,358 | $2,078 of it is interest in year 1 |
| Property tax | $346 | 0.96% of the value a year |
| Insurance | $73 | Census median for the city |
| Upkeep | $360 | 1% of the value a year |
| Owning, cash out | $3,137 | $280 of it builds equity |
| Lost return on the down payment | $703 | What the cash would earn each year at 8.3% |
| Buying costs, spread out | $180 | 3.5% of the price over 7 years |
| True cost of owning | $3,740 | Cash out, subtract the equity amount, then add the two lines above |
Salem verdict explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $432,418
- Typical rentZillow ZORI, September 2026
- $1,611 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Oregon, 1995 to 2025
- 4.9% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Salem
- 0.96% of value
- Home insuranceCensus ACS 2020-2024, Salem
- $73 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
Which change would flip the outcome in Salem?
Each threshold marks where Salem's 7-year verdict changes. Everything else remains unchanged.
Renting comes out ahead when
- Home prices grow more slowly than 6.2% a year. Oregon's long-run rate is 4.9%, and that's the number we use.
- The mortgage rate remains above 5.24%.
- For a similar home, monthly rent is under $2,130. The typical rate here is $1,611.
- Before year 16, you move.
Buying comes out ahead when
- Home price growth outpaces 6.2% each year.
- You lock in a mortgage rate under 5.24%. Today's rate is 7.24%.
- Renting that same home would cost you over $2,130 a month.
- You remain in place for at least 16 years.
Salem compared with the other 812 cities
| Measure | Salem | Median city |
|---|---|---|
| Typical home value | $432,418 | $422,451 |
| Typical rent | $1,611 /mo | $1,837 /mo |
| Price-to-rent ratio | 22.4 (#227 of 813) | 18.5 |
| Home prices, last 10 years | 6.6% a year | 6.2% a year |
| Rents, last 5 years | 3% a year | 4% a year |
| Property tax | 0.96% | 0.87% |
| Households that rent | 44% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
More Oregon cities
- Renting comes out ahead by $82k in Portland, OR.
- Renting comes out ahead by $49k in Eugene, OR.
- Renting comes out ahead by $61k in Gresham, OR.
- Renting comes out ahead by $44k in Hillsboro, OR.
- Renting comes out ahead by $93k in Bend, OR.
- Renting comes out ahead by $65k in Beaverton, OR.
- Renting comes out ahead by $19k in Medford, OR.
- Renting comes out ahead by $93k in Corvallis, OR.
- Renting comes out ahead by $31k in Springfield, OR.
- Tigard, OR. Renting is ahead by $102k.
- Albany, OR. Renting is ahead by $39k.