Salem, OR — Rental Investment Analysis

🔴WEAK— appreciation play only

Cap Rate

2.8%

Below average

Monthly Cash Flow

-$1,478

After all expenses

Price-to-Rent

18.0

Overpriced for rent

DSCR

0.45

Fails

📊 Key Metrics

Median Home Price: $497,443
Average Rent (3BR): $2,070/mo
Price-to-Rent Ratio: 18.0(high)
1% Rule: 0.46%(fails — need 1%+)
Cash-on-Cash Return: -15.4%
Vacancy Rate: 8.0%

📈 Market Strength

Unemployment Rate: 5.2%(+0.9% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: +0.35% YoY

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

0.87%

of assessed value (OR avg)

Median Income

$70,084

household (OR avg)

Rent-to-Income

35.4%

Stretched

Section 8 Max Rent

$2,070/mo

3BR voucher payment

🏛️ OR Investor Climate

Landlord Friendly

4/10

State Income Tax

Has state tax

Property Tax

0.87% effective

Population Trend

+0.35% (3yr)

🏘️ Best Zip Codes in Salem for Investors

97317

Cap Rate: 3.0%Cash Flow: -$1,312/mo$458,788

97301

Cap Rate: 2.9%Cash Flow: -$1,075/mo$372,505

97304

Cap Rate: 2.9%Cash Flow: -$1,478/mo$501,590

All Zip Codes in Salem

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
97317	3.0%	-$1,312	$458,788	$2,170/mo	0.46
97301	2.9%	-$1,075	$372,505	$1,750/mo	0.46
97304	2.9%	-$1,478	$501,590	$2,320/mo	0.45
97304	2.9%	-$1,478	$501,590	$2,320/mo	0.45
97306	2.1%	-$1,778	$497,443	$1,920/mo	0.33
97302	2.0%	-$1,691	$465,023	$1,760/mo	0.32
97371	1.0%	-$3,472	$767,151	$2,070/mo	0.15