Home Affordability in Madison, WI
The median home price in Madison is $355,000 with a median household income of $67,740. Housing is significantly stretched relative to local incomes.
Median Home Price
$355,000
Median Income
$67,740
Price-to-Income Ratio
5.2x
Est. Affordable Home
$263,000
Property Tax Rate
1.95%
Annual Property Tax
$6,923
Sales Tax Rate
5.50%
Cost of Living Index
106
Buying a Home in Madison
Based on the 28% rule (spending no more than 28% of gross income on housing), a household earning the median income of $67,740 in Madison can afford a monthly housing payment of approximately $1,581. This translates to a home price of roughly $263,000, which is below the median home price of $355,000 — many households may need a higher income, larger down payment, or should consider more affordable neighborhoods.
Property taxes on a median-priced home in Madison would be approximately $6,923 per year ($577/month) at the effective rate of 1.95%.
Down Payment Scenarios
| Down Payment | Amount | Loan Amount | PMI Required |
|---|---|---|---|
| 3% | $10,650 | $344,350 | Yes |
| 5% | $17,750 | $337,250 | Yes |
| 10% | $35,500 | $319,500 | Yes |
| 20% | $71,000 | $284,000 | No |
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