Real Estate Investing in Madison, Wisconsin (53716)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 53716 (Madison, WI)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Madison, WI (53716)?
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Market Analysis: 53716 Madison
Investors eyeing 53716 need to respect the fundamentals at play. Home values of $423K come alongside slower price movement and elevated management overhead.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 53716 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Nearby ZIPs in Madison have seen price recovery that 53716 has not matched. Dane County data supports the view that the spread is structural rather than temporary.
A substantial renter share of 27% in 53716 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
The right play in 53716 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Madison:
Property Strategy for 53716
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $348,858 | $1,640 | 3.4% | +8.2% | $174,429 |
| 3BR | $393,940 | $2,170 | 4.0% | +8.0% | $131,313 |
| 4BR | $454,330 | $2,430 | 3.9% | +8.1% | $113,583 |
| 5BR | $496,481 | — | — | +8.2% | $99,296 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 53716 Compare?
| Metric | 53716 | Madison | Madison, WI | Wisconsin |
|---|---|---|---|---|
| Home Value | $422,535 | $306,543 | N/A | $320,446 |
| 5-Year CAGR | 6.8% | 5.6% | N/A | 7.3% |
| Avg Rent | $1,739 | $1,679 | N/A | - |
| Cap Rate | 3.2% | 2.8% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 53716 (Madison, WI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $422,535 |
| Monthly Rent | $1,739 |
| Price-to-Rent | 20.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.9% |
| Cap Rate | 3.2% |
| 5-Year IRR | 10.0% |
📈 Home Appreciation
| 1-Year | +6.8% ▲ |
| 3-Year CAGR | +5.9% ▲ |
| 5-Year CAGR | +6.8% ▲ |
| 10-Year CAGR | +7.4% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.2%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 53716
Population: 18,866
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 53716
Schools in This ZIP Code
Nearby Schools (4 more)
Schools in adjacent ZIP codes that may serve this area
Hawthorne Elementary
Schenk Elementary
Kennedy Elementary
Whitehorse Middle
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 7,911 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Are tenants stable in Madison, WI?
Madison, WI draws a measured base of working renters. Demand at the $1,739/mo rent level is reasonable for standard single-family and small multi rentals.
Is Madison, WI a smart market for rental property?
The 3.0/5 investability rating in Madison, WI reflects its $423K prices and $1,739/mo rents. Investors generally consider it a solid option within WI.
How should investors approach Madison, WI?
In Madison, WI the notable play is typically careful cash-flow rentals with hands-on management. The combination of $423K prices and $1,739/mo rents suits that approach.
How viable is house hacking in Madison, WI?
House hacking in Madison, WI is a challenging. With home values around $423K and rents at $1,739/mo, owner-occupants can offset a meaningful share of PITI.
Is WI a landlord-friendly state?
Landlord-friendliness in Madison, WI is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
You know 53716 now. You don’t know where it ranks.
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How 53716 ranks in Madison, WI
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