Cost of Living in Madison, WI

With a cost of living index of 103, Madison, WI is somewhat more expensive than average. Living here is 3% more expensive than the national average and 24% above the Wisconsin state average of 79. As a major city with a population of 275,568, Madison offers a wide range of housing options, employment opportunities, and urban amenities.

Housing costs are the biggest factor in Madison's cost of living. The median monthly rent is $1,364 (3% above the US median of $1,319), and the median home value sits at $346,900 (14% above the national median of $304,900). At current prices, the median home costs roughly 4.5x the median household income — a moderately affordable ratio by today's standards.

The median household income in Madison is $76,983, which is 2% higher than the national median of $75,149. Residents spend roughly 21% of household income on rent. This is a comfortable ratio, well below the 30% threshold that financial experts recommend as a maximum.

Everyday prices in the Madison, WI (Metropolitan Statistical Area) metro area are generally below the national average. Out of 6 common items tracked by the Bureau of Labor Statistics, 6 are priced lower than the US average. These real-world prices — from groceries to electricity — add up and should be factored into any cost of living comparison.

Data sources: US Census Bureau (ACS 2023), Zillow Home Values, HUD Fair Market Rents, BEA Regional Price Parities, BLS Average Prices, and NOAA Climate Normals. Updated monthly.