Top 5 Neighborhoods for Investment Properties in Madison Area

Madison's real estate market offers compelling opportunities for property investors, driven by a stable economy, growing population, and strong rental demand. With the University of Wisconsin-Madison, state government employment, and a thriving tech sector led by companies like Epic Systems, the area provides multiple income streams that support a robust rental market.

Investment Market Overview

Key Market Drivers

University of Wisconsin-Madison

• 47,000+ students creating consistent rental demand


• Graduate students and faculty seeking quality housing


• Year-round occupancy with summer programs


• International students preferring furnished options

State Government

• 15,000+ state employees in Madison


• Stable employment providing reliable tenants


• Professional renters with good credit profiles


• Long-term rental arrangements

Technology Sector

• Epic Systems: 10,000+ employees


• Growing startup ecosystem


• High-income professionals


• Demand for upscale rental properties

Current Investment Climate

• Average Rental Yield: 6-8% gross yield


• Vacancy Rates: 3-5% annually


• Rent Growth: 4-6% year-over-year


• Property Appreciation: 5-7% annually


• Cap Rates: 4-6% depending on location and property type

Top 5 Investment Neighborhoods

1. Near East Side - Marquette Neighborhood

Investment Profile

• Average Property Price: $200,000 - $350,000


• Rental Yield: 8-10%


• Average Rent: $1,200 - $1,800/month


• Property Types: Single-family homes, duplexes, small apartments


• Tenant Profile: Young professionals, graduate students, artists

Why It's Attractive

• Affordability: Lower entry costs compared to west side neighborhoods


• Revitalization: Ongoing neighborhood improvements driving property values higher


• Walkability: Close to downtown, East Towne Mall, and major employers


• Rental Demand: Strong demand from UW students and young professionals

Partner with Aries Investment LLC for expert investment property guidance in the Madison market.