Real Estate Investing in Madison, Wisconsin (53718)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 53718 (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 (53718)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 53718 Madison
From a cash-flow lens, ZIP 53718 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $434K median. It rewards specialists, not generalists.
Rent of $1,650/mo on a $434K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 53718 sits below the stated 0.0% once reality is priced in.
Regionally, 53718 sits on the difficult end of the WI spectrum. The a strong candidate for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 53718 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
Distressed ZIPs reward experience. resilient returns are possible in 53718, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Madison:
Property Strategy for 53718
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $211,192 | $1,740 | 5.9% | +8.3% | $211,192 |
| 2BR | $279,824 | $1,990 | 5.1% | +7.9% | $139,912 |
| 3BR | $421,334 | $2,630 | 4.5% | +6.9% | $140,445 |
| 4BR | $493,170 | $2,950 | 4.3% | +7.3% | $123,293 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 53718 Compare?
| Metric | 53718 | Madison | Madison, WI | Wisconsin |
|---|---|---|---|---|
| Home Value | $433,939 | $306,543 | N/A | $320,446 |
| 5-Year CAGR | 5.4% | 5.6% | N/A | 7.3% |
| Avg Rent | $1,650 | $1,679 | N/A | - |
| Cap Rate | 3.0% | 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 53718 (Madison, WI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $433,939 |
| Monthly Rent | $1,650 |
| Price-to-Rent | 21.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.6% |
| Cap Rate | 3.0% |
| 5-Year IRR | 8.4% |
📈 Home Appreciation
| 1-Year | +4.0% ▲ |
| 3-Year CAGR | +4.1% ▲ |
| 5-Year CAGR | +5.4% ▲ |
| 10-Year CAGR | +6.2% ▲ |
🏠 Rent Trends
| 1-Year | -6.0% ▼ |
| 3-Year CAGR | 0.0% ▼ |
| 5-Year CAGR | +2.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.0%). 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 53718
Population: 18,642
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 53718
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
What approach is best for Madison, WI real estate?
Investors who focus on careful cash-flow rentals with hands-on management typically do well in Madison, WI. The numbers - $434K homes against $1,650/mo rents - support that play.
Are eviction rules reasonable in Madison, WI?
Madison, WI falls under WI landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
What is the tenant pool like in Madison, WI?
Expect a solid tenant pool in Madison, WI. The rental market absorbs $1,650/mo rents without meaningful friction.
What does house hacking look like in Madison, WI?
The a challenging house-hack environment in Madison, WI reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
What is the typical rental rate in Madison, WI?
Investors in Madison, WI typically see rents near $1,650/mo per month against $434K home values - a solid setup for rental cash flow.
You know 53718 now. You don’t know where it ranks.
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How 53718 ranks in Madison, WI
Every ZIP in this metro, ranked. Free.
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