Rental property in Madison, WI
2026 Market Data & Investment Analysis
Gross Yield
5.1%
Annual rent / price
Median Home Price
$380,000
As of 2026-Q1
Median Monthly Rent
$1,600
Per month
Population
269,840
+1% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Redfin / Zillow / U.S. Census Bureau, 2026-Q1.
Calculate your rental yield in Madison
Pre-filled with Madison's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
5.05%
Net Rental Yield
3.17%
Cap Rate
3.17%
Monthly Cash Flow
$1,003.33
Annual Cash Flow
$12,040.00
Madison rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Madison provides solid rental yields of 5.1%, in line with healthy investment market benchmarks.
Modest population growth of 1% per year indicates a stable but slowly growing rental market.
The vacancy rate of 4.5% is healthy, indicating strong rental demand and limited downtime between tenants.
What type of investment market is Madison?
Madison presents challenges with both modest rental yields and limited population growth. Investors need to carefully analyze specific neighborhoods and property types to find opportunities that outperform the market average.
✓ Strengths
- •Lower entry prices may reduce downside risk
- •Select neighborhoods and value-add properties can outperform the average
! Risks
- •Below-average gross yield of 5.1% limits income potential
- •Limited population growth reduces long-term rental demand
- •Higher due diligence required to identify strong-performing assets
Key Metrics
How does Madison compare to nearby cities?
Madison vs Milwaukee: 2.0 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Milwaukee, WI | $185,000 | $1,100 | 7.1% | -0.4% |
| Chicago, IL | $290,000 | $1,600 | 6.6% | -0.5% |
| Minneapolis, MN | $320,000 | $1,600 | 6% | +0.2% |
| Des Moines, IA | $220,000 | $1,200 | 6.5% | +0.5% |
| Indianapolis, IN | $235,000 | $1,300 | 6.6% | +0.8% |
Common questions about investing in Madison
Is rental investing profitable in Madison?▾
What is the average rental yield in Madison?▾
How does Madison compare to Milwaukee for investors?▾
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