Investment metrics, interactive calculators, and data-driven analysis for Madison rental properties.
Pre-filled with Madison medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Madison.
Madison, WI has a population of 280,904 and has been growing at 1.2% annually — above the national average, suggesting steady demand pressure on housing. The median home price of $360,000 paired with median rents of $1,580/mo produces an estimated cap rate of 2.38%.
Property taxes at 1.85% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 4.4% is impressively low, indicating tight rental supply and strong tenant demand — favorable for landlords.
At a price-to-income ratio of 5.3x, homes cost about 5.3 times the local median income of $68,400. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Madison is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.