What's a good cap rate in Madison?

In Madison, cap rates typically run around 7.5% (Wisconsin state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Madison deal lands versus this benchmark.

What's the average rent for a rental in Madison?

A typical rental in Madison runs about $1,694–$2,236/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Wisconsin?

Wisconsin's effective property tax rate is about 1.61% of value per year — the figure TrueCap applies by default for Madison deals. You can override it with the exact local rate.

Madison, WI

Madison rental property analysis

Madison is recession-resistant by design — the University of Wisconsin plus state government keep vacancy among the lowest in the Midwest.

Madison market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

7.5%

Wisconsin state median

Typical rent

$1,694–$2,236/mo

HUD FMR · 2–3BR · 2026

Typical price

$300,000–$400,000

est., all-in

Property tax

1.61%

Wisconsin effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Madison a good place to buy rentals?

Exceptional demand stability and steady appreciation, with moderate cash flow. A strong core-holding market for risk-averse buy-and-hold.

See the full Wisconsininvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Madison

Fitchburg

Suburb, family renters, low vacancy.

Sun Prairie

Growth, newer stock, reliable demand.

East Madison

Value relative to the core, steady rentals.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Madison deal in 60 seconds

Paste a Madison address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Wisconsin tax and HUD rent so you start from the right assumptions.

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