Although it is an American Flyer motor, I do not believe that motor is correct for that boiler. American Flyer's Champion line was it's lower priced offerings starting in the early 1930s. As a American Flyer collector for over 40 years, I noted that the motor itself appears to be from an American Flyer 3195 motor. The correct motor for that boiler is a much cheaper constructed motor, with cheaper cast wheels, with no steel tires, and the drive wheels being spaced more closely together. As the wheels on the original motors are prone to zinc pest, the original motor was likely replaced at some point due to its inability to run after the wheels fell apart.
The set would likely date to the early 1930s, c. 1932 or so. The cars likely would have had red roofs, but they could have been orange.