Rent vs buy in Madison, WI

For Madison, Wisconsin, the typical rent is $1,837 /mo and the typical home $424,543.

Rent

Renting comes out ahead by $79k over 7 years

Using Madison's typical figures for rent and home value, plus a 20% down payment and today's mortgage rate. No break-even within 30 years.

Clearly labelled opinion, with the math shown. What you see are estimates, not quotes. Adjust one number and the stamp shifts.

Renting is ahead by: $79k
Break-even point: 30 years or more
What owning really costs: $3,962 each month

Change my numbers

The stamp relies on Madison's typical rent and home value. The rent, price and years you put in can flip it.

Do your numbers differ from the city's?

Enter the rent, price and down payment numbers you want to use. The stamp updates to match.

Is it cheaper to rent or buy in Madison?

Over 7 years renting costs less by $78,666, counting the money you get back when you sell. In every year shown, renting's net cost sits below owning's, and owning never catches up within 30 years.

The renting side. The owning side. Net cost to date, by year.

Madison: average rent next to the mortgage payment

Rent and the mortgage don't tell the whole story, so here you get all the monthly costs in year 1, using Madison's typical price.

Each month, year 1	Amount	What it is
Rent	$1,837	All of it, every month
Mortgage payment	$2,315	$2,040 of it is interest in year 1
Property tax	$619	1.75% of the value a year
Insurance	$82	Census median for the city
Upkeep	$354	1% of the value a year
Owning, cash out	$3,370	$274 of it builds equity
Lost return on the down payment	$690	What the cash would earn in a year at 8.3%
Buying costs, spread out	$177	3.5% of the price over 7 years
True cost of owning	$3,962	Cash out, minus the equity share, plus both lines listed above

Madison verdict: the numbers behind it

Typical home valueZillow ZHVI, September 2026: $424,543
Typical rentZillow ZORI, September 2026: $1,837 /mo
Down payment20% avoids private mortgage insurance, which the engine does not model: 20%
Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US): 7.24%
Home price growthFHFA house price index, Wisconsin, 1995 to 2025: 4.1% a year
Rent growthCPI rent of primary residence, yearly growth 2006 to 2026: 3.5% a year
Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025: 8.3% a year
Property taxCensus ACS 2020-2024, Madison: 1.75% of value
Home insuranceCensus ACS 2020-2024, Madison: $82 /mo
MaintenanceFannie Mae, low end of 1% to 4%: 1% of value a year
Buying costsFreddie Mac, middle of 2% to 5%: 3.5% of price
Selling costsAgent commission plus closing costs: 6% of price

What would change the answer in Madison?

Each line marks the point where Madison's 7-year verdict changes, with everything else held as it is.

When renting wins

Home prices rise by less than 6.3% a year. Our figure is 4.1%, the long-run rate for Wisconsin's market.
The rate on a mortgage stays above 3.91%.
Monthly rent on a home like this comes in under $2,680 (typical here: $1,837).
Any move in the next 30 years leaves owning behind: it never catches up at these numbers.

When buying wins

Home prices grow at more than 6.3% a year.
You lock in a mortgage rate under 3.91% (the rate today is 7.24%).
Renting that same home would cost you over $2,680 a month.

Madison compared with the other 812 cities

Measure	Madison	Median city
Typical home value	$424,543	$422,451
Typical rent	$1,837 /mo	$1,837 /mo
Price-to-rent ratio	19.3 (#371 of 813)	18.5
Home prices, last 10 years	6% a year	6.2% a year
Rents, last 5 years	5.4% a year	4% a year
Property tax	1.75%	0.87%
Households that rent	54%	42%

Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.

More cities in Wisconsin

Rent. Rent in Kenosha, WI. Renting is ahead by $15k.
Rent. Rent in Janesville, WI. Renting is ahead by $65k.

Rent vs buy in Wisconsin: numbers for the whole state