Location: Washington County, IN | Metro: Washington County, IN HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $780 | $119,849 | 0.65% | D |
| 2BR | $1,010 | $152,494 | 0.66% | D |
| 3BR | $1,220 | $212,076 | 0.58% | F |
| 4BR | $1,340 | $291,237 | 0.46% | F |
| 5BR | $1,554 | $318,231 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 47167, Salem, IN, presents a nuanced picture for landlords and small-portfolio investors. The median home value stands at $208,337, indicating a stable residential property base. With only 0.2% of listings being reduced, there's a strong signal that sellers maintain significant pricing power. This reduction rate suggests that homes are generally selling close to their asking prices, which bodes well for maintaining or even slightly increasing property values.
The median days on market (DOM) being listed as N/A could imply either very quick sales or a data limitation, but when combined with the low reduction rate, it likely points towards a brisk market where properties don't linger long before closing. This dynamic supports the notion that Salem, IN, remains attractive to buyers, further underpinning the stability of home values.
On the rental side, the Fair Market Rent (FMR) for ZIP 47167 is set at $950 for fiscal year 2024, whereas the current market rent is estimated around $750 according to the Census ACS. This discrepancy indicates an opportunity for landlords to gradually increase rents to align with the FMR without losing tenants, given the gradual adjustment of market rates to meet government guidelines.
For long-term hold investors, the setup in Salem, IN, implies a realistic appreciation thesis. The combination of stable home values and potential rental increases suggests that the overall investment climate is favorable. However, it's important to note that rapid appreciation is unlikely. Instead, the market signals a steady growth trajectory, with property values and rents expected to rise modestly over the next 12 to 24 months.
In summary, the median home value, low listing reduction rate, and the gap between current market rents and the FMR point to a market where landlords and investors can expect to maintain pricing power and see gradual improvements in both property values and rental income. This makes Salem, IN, a solid choice for those looking to build a long-term real estate portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.