Rent vs buy in Madison, WI
A 7-year breakeven using this ZIP's actual home-value and rent trends, not national averages. ZIP 53703 (Dane County).
Renting wins in Madison over 7 years by about $164,768 — buying only beats it if prices appreciate faster than projected.
7-year cost comparison
$362,580
Net cost over 7 years after equity
Equity built: $104,354
$197,812
Total rent paid over 7 years
No equity, no selling costs
Assumes 20% down, 6.75% rate, -0.6%/yr price growth and 6.2%/yr rent growth (this ZIP's 5-yr trend).
Price-to-rent ratio
19.2x
Mixed — at 19.2× (ZIP market indexes) price-to-rent is borderline, leaning renting; at 26.1× (county median home value × HUD 2-BR fair market rent) it favors renting. Which applies depends on the rent you actually face.
Price-to-income
5.0x
Stretched (>5x — historically expensive vs local incomes)
5-yr price CAGR
-0.6%
Annualized home-value growth
Madison — rent vs buy questions
Is Madison, WI a good rental market?
Mixed. Madison's 19.2x price-to-rent ratio is moderate; rentals can cash flow, but only on well-priced properties.
What is the median home value in Madison?
The typical home value in Madison is about $450,167 (ZIP-level market index, cross-checked against the Census ACS county median updated by FHFA HPI), down 5.4% year-over-year, and down 3.0% over five years.
What is the median rent in Madison?
The typical rent in Madison is about $1,953/mo (ZIP-level market-rent index, cross-checked against HUD Small Area FMR), up 1.5% year-over-year.
Is it cheaper to rent or buy in Madison?
Over a 7-year horizon, renting is cheaper in Madison by about $164,768 — buying only pays off if prices appreciate faster than projected.
Is Madison affordable for homebuyers?
Madison's median home value is 5.0x the local median household income — Stretched (>5x — historically expensive vs local incomes).
Data: FHFA HPI, Census ACS, HUD FMR, FBI CDE. For research only — verify before deciding.