Rent vs Buy in Madison, WI
Madison is a mid-priced metro, with a median listing price of $499,000. That puts it in territory where the rent-vs-buy call hinges on your rate, your down payment, and your stay length rather than the market itself.
Rent averages $1,350 a month, and against that Madison's prices put the price-to-rent ratio on the high side. That usually favors renting on the monthly math until appreciation and time tip the balance.
How Madison compares
- Homes in Madison cost 13% more than the national median of $443,255.
- Rent in Madison runs 39% lower than the U.S. median of $2,200/mo.
- Homes in Madison cost 25% more than the Wisconsin median of $399,000.
What the numbers say
On a $499,000 median home at 1.59%, property tax in Madison runs about $661 a month ($7,934 a year). That is the single largest owning cost a renter never pays directly, and it is worth modeling before you compare.
Average rent sits at $1,350 a month ($16,200 a year), the anchor for the renting side. Home prices in Madison have climbed fast lately, near 8.9% a year. The calculator still uses the long-run 3 to 3.5% national average, since betting on a hot streak holding is a common way short-stay buyers lose money.
Insurance here defaults to the Wisconsin statewide average of $1,500 a year, a placeholder to replace with a real quote.
Where the Madison rent-vs-buy math stands out
Madison's price-to-rent ratio is about 30.8: the $499,000 median price divided by $1,350 a month in rent over a year. That is a high ratio, where renting frequently costs less each month and the buy case rests on a long hold plus price growth. Think of the ratio as a quick first read. It will not settle the decision on its own, but it shows which side starts in front.
Because the ratio is high, the monthly cost of owning in Madison typically exceeds rent for the first several years, even before maintenance. Buying catches up only as the loan amortizes and the home appreciates, so the honest question is whether you will hold long enough for that crossover to arrive.
A few Madison specifics sharpen that read. Resident population reached 709,685 in 2025, up from 681,156 in 2021. Source. Government employment reached 96,900 in 2025, up from 86,100 in 2021. Source.
Home Purchase
Enter details about the home you're considering buying
Renting
Enter details about your rental alternative
Time Horizon & Market
Detailed mode adds 17 more inputs including advanced assumptions.
Buying is cheaper over 7 years
by $31,485
Buying comes out ahead, though the margin is meaningful only if you stay the full term and your assumptions hold roughly true.
The result is robust across small changes to your inputs.
Total cost of buying
$387,138
Average $4,609 per month over 7 years
Total cost of renting
$207,949
Average $2,476 per month over 7 years
Equity Built
$245,691
What you've paid down on the loan principal over 7 years.
Net Sale Proceeds
$211,339
What you'd walk away with after selling, minus closing costs.
Investment Growth
$65,204
What the down payment could grow to if invested instead of used to buy.
This chart shows total dollars spent on each path, month by month. With your inputs and time horizon, renting stays ahead the entire time.
Frequently Asked Questions
By Barron Hansen, Founder · Last reviewed