Salem, MA

  • Overview
  • Performance
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Key Performance Metrics

Market snapshot

Performance indicators for the Salem short-term rental market based on reliable data.

Listings

245 / 513

Reliable / Active

Cap Rate

8%

Middle-Earners Gross Yield

Revenue

$46,041

Middle-Earners Revenue

Occupancy

62%

Middle-Earners Occupancy

Home Value

$615,923

Median Home Sale Price

Top Earners

$88,432

Top-Earners Revenue

Salem

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Salem.

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C

Challenging to Investors

Salem Regulations

Only owner‑occupied primary residences are permitted for STRs; new non‑owner‑occupied units are banned since 2018 and legacy permits are closed, limiting most investment models. Compliance (annual $50 registration, $50 inspection, state tax registration) is straightforward, but strict caps and zoning make operations constrained for investors.

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About Salem

Salem is a historic coastal city in Essex County, Massachusetts, home to approximately 44,000 residents. Perched on the North Shore of Massachusetts Bay, the city is best known worldwide for the 1692 witch trials, an event that has become a year-round cultural draw rather than a seasonal curiosity, and it functions as a gateway to the broader North Shore, including Marblehead, Gloucester, and Cape Ann. Salem sits roughly 20 miles northeast of Boston, an easy drive or commuter rail ride from the city, which gives it a distinct walkable character while keeping it well within reach of a major metropolitan area.

The Salem Witch Museum is the city's most-visited attraction, presenting the 1692 trials through life-size stage sets and a separate examination of the wider phenomenon of witch-hunting through the centuries. Located on Washington Square, it is a short walk from the downtown core and the waterfront, making it a natural anchor for visitors exploring the city on foot.

Just north of downtown, the House of the Seven Gables is the colonial-era mansion made famous by Nathaniel Hawthorne's 1851 novel. The site, about a five-minute drive or a 20-minute walk from the city center, includes several preserved historic structures, seaside gardens, and a working colonial-era farm, offering a quieter counterpoint to the witch-themed attractions that dominate much of Salem's tourism.

The Peabody Essex Museum occupies a large campus of connected historic and modern buildings in the heart of downtown and is one of the largest art museums in New England, with significant collections of Asian, African, and American art alongside a recreated 200-year-old Chinese house. It is essentially within walking distance of most of Salem's central hotels, inns, and short-term rentals.

For visitors interested in the harbor, the Salem Maritime National Historic Site, managed by the National Park Service, preserves a waterfront of wharves, warehouses, and the tall ship Friendship of Salem, all within an easy walk of the central historic district. A short drive further out, Salem Willows Park sits at the tip of a small peninsula and offers bay-side paths, a small beach, an old-fashioned arcade, and shaded picnic areas that have drawn families since the 19th century.

Salem's combination of compact walkability, a dense cluster of historic attractions, and proximity to Boston makes it a particularly strong fit for short-term rentals. Visitors arrive throughout the year for the witch-related tourism, the museums, and the harbor, and the city also works well as a base for day trips along the North Shore and into Boston itself.

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