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Cost of Living: Chicago, IL vs Salem, OR

Wondering how far your dollar stretches in Chicago compared to Salem? Below we break down housing costs, rent, taxes, income, and quality of life using 2026 data so you can make an informed relocation or remote-work decision. Every number is computed from Census, BLS, and Zillow data specific to these two metro areas.

TL;DR

Chicago cost-of-living index is 114 vs 105 for Salem (US = 100). Median home: $315,000 vs $375,000. Median rent: $2,288/mo vs $1,350/mo.

Source: Census ACS · Zillow ZHVI/ZORI · BEA RPP, 2026

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Salem is 7.9% cheaper than Chicago
COL Index: Chicago 114 vs Salem 105 (national avg = 100)
Written by Jere Salmisto, Founder & Quantitative Systems Builder, CalcFi·Reviewed by CalcFi Editorial·Last reviewed 2026-04-19

Chicago vs Salem — At a Glance

ChicagoMetricSalemDifference
114Cost of Living Index105-7.9%
$315,000Median Home Price$375,000+19.0%
$2,288Median Monthly Rent$1,350-41.0%
$70,100Median Household Income$58,200-17.0%
2.1%Property Tax Rate1.0%-52.4%
4.6%Unemployment Rate4.2%-8.7%
31 minAverage Commute22 min-29.0%
36.7Median Age35.5-3.3%
9,560,000Metro Population430,000-95.5%

Data sourced from Census Bureau, BLS, Zillow, and ApartmentAdvisor (2024-2025). COL Index: 100 = national average.

Housing Comparison: Chicago vs Salem

Monthly mortgage assumes 6.5% interest, 30-year fixed, 20.0%down payment. PITI includes principal, interest, property tax, and homeowner's insurance.

Chicago

Median Home Price$315,000
Down Payment (20.0%)$63,000
Loan Amount$252,000
Principal & Interest$1,593/mo
Property Tax$551/mo
Insurance$92/mo
Monthly PITI$2,236/mo

Salem

Median Home Price$375,000
Down Payment (20.0%)$75,000
Loan Amount$300,000
Principal & Interest$1,896/mo
Property Tax$313/mo
Insurance$109/mo
Monthly PITI$2,318/mo

Rent & Affordability Ratios

Median Monthly Rent$2,288 vs $1,350 (-$938/mo)
Annual Rent Difference$11,256/yr more in Chicago
Home Price-to-Income Ratio4.5x (Chicago) vs 6.4x (Salem)
Years to Save 20% Down (15% savings rate)6.0 yrs (Chicago) vs 8.6 yrs (Salem)

Buying a home in Chicago costs $2,236/month (PITI) compared to $2,318/month in Salem — a difference of $82/month or $984/year. The price-to-income ratio is 4.5x in Chicago versus 6.4x in Salem, suggesting Chicago is relatively more affordable for homebuyers relative to local incomes. At a 15% savings rate, it takes 6.0 years to save a down payment in Chicago compared to 8.6 years in Salem.

Tax Comparison: Chicago vs Salem

Estimated on each city's median household income, single filer, standard deduction, 2025 rates.

Tax CategoryChicagoSalem
Gross Income$70,100$58,200
State Income Tax$3,329$4,539
Federal Income Tax$6,871$4,855
FICA (SS + Medicare)$5,362$4,452
Property Tax (on median home)$6,615/yr$3,750/yr
State Sales Tax Rate6.3%None
Total Tax Burden$15,562 (22.2%)$13,846 (23.8%)
Take-Home Pay$54,538$44,355

On median household income, total taxes (federal + state + FICA) come to $15,562 in Chicago (22.2% effective) versus $13,846 in Salem (23.8% effective). After taxes, take-home pay is $54,538 in Chicago and $44,355 in Salem. Property taxes add $6,615/year on the median Chicago home versus $3,750/year in Salem.

Salary Equivalence: What Your Income Is Worth

A $70,100 salary in Chicago equals
$64,566
in Salem
A $58,200 salary in Salem equals
$63,189
in Chicago

These figures adjust for cost of living using the formula: adjusted = salary × (COL_destination / COL_origin). If you earn $70,100 in Chicago (COL 114) and relocate to Salem (COL 105), you would need $64,566 to maintain the same purchasing power. This means you can take a pay cut of $5,534 and still maintain your lifestyle in Salem.

Quality of Life: Chicago vs Salem

Average Commute
31 min
Chicago
22 min
Salem
9 min longer in Chicago
Unemployment Rate
4.6%
Chicago
4.2%
Salem
Salem lower
Metro Population
9.6M
Chicago
0.4M
Salem
Chicago is 22.2x larger

Beyond costs, quality of life matters. The average commute in Chicago is 31 minutes versus 22 minutes in Salem, a difference of 9 minutes each way. Salem's lower unemployment rate of 4.2% versus 4.6% suggests a stronger job market. Chicago skews slightly older with a median age of 36.7 vs 35.5 in Salem.

Other Cost of Living Comparisons

Chicago vs New YorkCOL 114 vs 187Chicago vs Los AngelesCOL 114 vs 173Chicago vs DallasCOL 114 vs 105New York vs SalemCOL 187 vs 105Los Angeles vs SalemCOL 173 vs 105Dallas vs SalemCOL 105 vs 105

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Frequently Asked Questions

Is Chicago or Salem more expensive?

Chicago is 7.9% more expensive than Salem overall. Chicago has a cost of living index of 114 compared to 105 for Salem (national average = 100). The biggest difference is housing: the median home costs $315,000 in Chicago vs $375,000 in Salem.

How much more does housing cost in Chicago vs Salem?

The median home price in Chicago is $315,000, which is $60,000 more than Salem's median of $375,000. Monthly rent follows a similar pattern: $2,288/month in Chicago vs $1,350/month in Salem, a difference of $938/month or $11,256/year.

What salary do I need in Salem to match my Chicago income?

To maintain the same standard of living, a $70,100 salary in Chicago is equivalent to $64,566 in Salem. This is based on the cost of living index ratio: Chicago's COL index of 114 vs Salem's 105. Conversely, $58,200 in Salem equals $63,189 in Chicago.

Which city has lower taxes, Chicago or Salem?

On a median household income, the combined federal, state, and FICA tax burden is $15,562 (22.2% effective rate) in Chicago vs $13,846 (23.8% effective rate) in Salem. Property taxes on the median home are $6,615/year in Chicago (2.1% rate) vs $3,750/year in Salem (1.0% rate). Sales tax rates are 6.3% in Illinois and 0.0% in Oregon.

What is the median household income in Chicago and Salem?

Chicago median household income: $70,100/yr. Salem median household income: $58,200/yr (Census ACS).

How does rent compare in Chicago vs Salem?

Median monthly rent: $2,288 in Chicago vs $1,350 in Salem. Annualized that is $27,456 vs $16,200.

Which city is better for remote workers, Chicago or Salem?

Salem offers a lower cost of living (index 105 vs 114), which lets remote-workers keeping a coastal salary stretch further. Chicago typically wins on amenities and labor-market depth.

Where does the data on this comparison come from?

Chicago and Salem numbers are pulled from Zillow ZHVI/ZORI (home values, rent), the U.S. Census Bureau ACS (income, demographics), and BEA RPP (cost-of-living index). Each value is timestamped on the page.

How often is this Chicago vs Salem comparison updated?

Source feeds (Zillow, Freddie Mac PMMS, Census ACS, BEA RPP) are refreshed on their native cadence. Page caches revalidate every 24 hours via Next.js ISR.

Does this comparison replace tax or financial advice?

No. The Chicago vs Salem cost-of-living page is educational reference using public data and standard formulas. It is not personalized tax, legal, or investment advice. Consult a licensed professional for material decisions.

Explore More

All City ComparisonsChicago COL CalculatorSalem COL CalculatorSalary GuidesMortgage Affordability CalculatorRent vs Buy Calculator

Sources & Citations

  1. Zillow Research — ZHVI (home values) & ZORI (observed rent index) — zillow.com/research/data
  2. U.S. Census Bureau — American Community Survey (ACS) 5-year estimates — census.gov/acs
  3. Bureau of Economic Analysis — Regional Price Parities by state and MSA — bea.gov/rpp
  4. Tax Foundation — effective state and local tax rates — taxfoundation.org
  5. Freddie Mac PMMS — weekly national average mortgage rates — freddiemac.com/pmms
  6. Internal Revenue Service — federal income tax brackets and standard deduction — irs.gov
  7. U.S. Bureau of Labor Statistics — unemployment and wage statistics — bls.gov
Methodology & Assumptions

Home prices use Zillow Home Value Index (ZHVI)[1]; rents use Zillow Observed Rent Index (ZORI)[1]. Median household income comes from the Census ACS 5-year estimates[2].

COL indices use the BEA Regional Price Parity methodology[3], normalized so 100 = national average.

Property tax rates are effective rates from the Tax Foundation[4], expressed as % of owner-occupied home value. Mortgage estimates assume 6.5% fixed rate[5], 30-year term, 20.0% down, $1,800/yr homeowners insurance.

Federal tax calculations[6] assume single filer, standard deduction. State tax uses the top marginal rate times taxable income after the state standard deduction. FICA = 6.2% Social Security (up to wage base) + 1.45% Medicare.

Salary equivalence uses adjusted = salary × (COL_destination / COL_origin). This captures cost-of-living shift but not state income tax differences.

Unemployment figures are the most recent monthly MSA-level readings from the BLS LAUS series[7].

Last reviewed is computed from the maximum retrievedAt across every source this page consumes.

City data from Census Bureau[2], BLS[7], and Zillow[1] (2024-2025). Tax calculations use 2025 IRS rates[6], single filer, standard deduction. Mortgage estimates assume 6.5% PMMS rate[5], 30-year term, 20.0% down. COL Index: 100 = national average[3]. Last reviewed 2026-04-19.