A+
1%
Overall NAT. AVG.
4%
Goods & Services NAT. AVG.
5%
Housing NAT. AVG.
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Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.
The cost of living index is based on a national average of 100. For example, if the cost of living is 90, then it is 10% lower than average. If the cost of living is 110, then it is 10% higher than average. The breakdown for each index is as follows: goods & services (33%), groceries (13%), health care (5%), housing (30%), transportation (9%) and utilities (10%). If the cost of living data was unavailable for this city, estimates based upon nearby cities were used.
Index Salem Virginia National
Cost of living101109100
Goods & Services96100100
Groceries97101100
Health care8999100
Housing105130100
Transportation9895100
Utilities116104100

An Overview of Cost of Living in Salem, VA

Getting a feel for the cost of living in Salem is essential for anyone planning to relocate, as it empowers them to make informed financial decisions, secure a comfortable lifestyle and maintain financial stability in their new environment. The cost of living in Salem is 101, which is 1% higher than the national average. Relocating individuals may need to adjust their savings and investment strategies based on the cost of living in the new location. It influences decisions about retirement planning, investments and financial goals.

The cost of living in Salem is about average when compared to all other cities across the nation. You can expect that everyday items like food, goods and services and utility bills will be no more expensive than any other average city. Residents can anticipate living expenses that remain in line with the national average, ensuring a manageable financial burden, making it an attractive choice for those seeking affordability without the constraints of higher everyday expenditures.

Is Salem Affordable?

Is Salem affordable? This is a pivotal question, especially when mulling over a move, as affordability carries substantial weight in your decision-making process. Factors such as the cost of living index (discussed earlier), housing expenses and income levels all contribute to a location's affordability. For instance, in Salem, the median home price is 8.3% higher than the national average and monthly rent prices are 2.4% lower than the typical rates. Additionally, the median income levels play a role in affordability, with Salem boasting a median household income of $63,411, 14.6% higher than the national average.

What Factors can Influence the Cost of Living in Salem?

Utilities: Like everything else, utilities costs can range significantly depending on factors like climate, energy sources available, location and even state regulations. Things like electricity, water, heating and waste disposal costs can be higher or lower, depending on the city or state. The utilities index in Salem comes in at 16.2% higher than the national average.

Taxes: Locations with elevated tax rates, encompassing both sales and income taxes, can be a factor in driving up the cost of living. When you're paying more in taxes for everyday goods and services, it naturally translates into higher expenses. Similarly, a higher income tax rate can also contribute to an overall higher cost of living. In Salem, the standard sales tax rate starts at 5.3%, and the income tax rates commence at 2%.

Subsidies: Certain regions may provide government subsidies or assistance initiatives designed to alleviate the cost of living burden on their residents. These programs encompass a wide range of support mechanisms, such as Medicare, Medicaid, housing subsidies, low-income home energy assistance programs, school lunch programs, supplemental nutrition assistance programs, student loans, electric vehicle tax credits, affordable care act subsidies and farming subsidies. Areas with fewer subsidy offerings might experience an elevation in their cost of living.

Where is the Data From?

The Salem cost of living data displayed above is derived from the C2ER cost of living index to provide a useful and reasonably accurate measure of living cost differences in urban areas. The index takes into account data from 300 independent researches, covering more than 60 goods and services across 6 different categories, to create an overall index for each area, with 100 being the average. The C2ER index does not include sales or income tax rates in their data, however AreaVibes does include both income and sales tax rates in the overall cost of living score for each area.

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Cost Of Living Quick Facts

  • The cost of living in Salem is 8% lower than the Virginia average
  • The cost of living in Salem is 1% higher than the national average
  • Salem housing is 5% higher than the national average
  • Virginia general sales tax is 4% higher than the national average
  • Virginia state income tax is 23% lower than the national average

Most Affordable Places to Live in and Around Salem

See all the best places to live around Salem

Compare Salem, VA Cost of Living

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      Salary Calculator

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      Price difference in compared to
      Cost of living index
      Goods & Services index
      Groceries index
      Health care index
      Housing index
      Transportation index
      Utilities index

      Median Income & Debt-To-Income Ratio

      Median Income Per Year Per Month Max Budget (28% DTI) Max Budget (36% DTI)
      Owners$78,760$6,563$1,838$2,363
      Renters$41,778$3,482$975$1,253
      A good way to judge both the affordability of the housing and the cost of living in Salem is by simply calculating the maximum that should be spent on housing, otherwise known as the debt-to-income ratio (DTI). The plan is to avoid spending more than 28 percent of the gross income on costs that pertain to housing and no more than 36 percent on all expenses and debts. Salem has a median income of about $78,760 for people who own homes. Based on that number, a maximum of $1,838 should be spent on expenses related to housing. Renters have a slightly different median income, which is $41,778. Based on this average, renters should spend no more than $975 on all rental costs if they want to maintain a non-impoverished standard of living.

      Virginia Sales Tax

      State General Sales Tax With Max Surtax
      Virginia 5.3% 6%

      Virginia Income Tax

      State Income Tax (Low) Income Tax (High)
      Virginia 2% 5.75%

      Goods & Services

      Item Salem National avg. Difference
      Haircut $14.40$24.2640.6%
      Beauty Salon $33.51$45.5626.5%
      Toothpaste $3.66$3.701.1%
      Shampoo $1.20$1.286.0%
      Movie $13.42$12.1310.6%
      Bowling $13.22$18.0026.5%

      Groceries

      Item Salem National avg. Difference
      Ground Beef $5.36$5.848.3%
      Fried Chicken $1.43$1.579.3%
      Milk $4.59$4.671.8%
      Potatoes $4.93$4.930.0%
      Pizza $14.11$12.0916.7%
      Beer $10.63$10.412.1%

      Health Care

      Item Salem National avg. Difference
      Optometrist $121.62$125.683.2%
      Doctor $150.70$135.7811.0%
      Dentist $109.15$113.293.7%
      Ibuprofen $10.39$10.652.5%
      Lipitor $484.30$468.603.4%

      Housing

      Item Salem National avg. Difference
      Home Price $200,000.00$184,700.008.3%
      Avg. Mortgage Payment $1,912.27$2,346.6918.5%
      Apartment Rent $926.00$949.002.4%

      Transportation

      Item Salem National avg. Difference
      Gasoline $3.29$3.464.9%
      Tire Balancing $41.28$59.9231.1%

      Utilities

      Item Salem National avg. Difference
      All Electricity $240.27$193.9923.9%
      Phone $184.83$192.253.9%
      Although the cost of living data is updated regularly, this cost of living information is to be used as estimates only as prices can change on an ongoing basis.

      Nearby cities with low cost of living

      City Population Cost of Living Index National Avg.
      Lafayette, VA813963.6%
      Shawsville, VA1,9528812.4%
      Roanoke, VA99,122927.9%
      Vinton, VA8,102937.2%
      Boones Mill, VA149936.6%
      Salem, VA25,2901010.6%

      Cities with similar population

      City Population Cost of Living Index National Avg.
      Clinton, IA25,2908614.4%
      Mount Pleasant, MI25,2908911.3%
      Prince Edward County, ON25,289n/a 
      El Cerrito, CA25,280201100.8%
      Franklin, IN25,276936.8%
      Salem, VA25,2901010.6%
      Date & Last Updated: This data reflects 2023 and was released from C2ER in January, 2024; this is the most current data available.