Cost of Living in Madison, WI [2025]

The capital of the Badger State is the beautiful river city, Madison. Second only to Milwaukee in Wisconsin population, Madison is centrally located on the Yahara River.

It’s no secret that Wisconsin is known as America’s Dairyland -- and Madison has been crowned the cheese lover’s paradise. You’ll find no shortage of restaurants and markets serving up those artisanal cheeses, along with curds, ice cream, and milkshakes. And what's better for pairing with cheese? Unlike the West Coasters, who would say "Wine, obviously," fellow Wisconsinites will tell you it's beer all the way. That's why you’ll also find award-winning craft breweries throughout the city.

Madison Cost of Living

People move to Madison for the vibrant city life, bustling job market, and the abundant access to nature. If you're considering becoming a Cheesehead yourself, you’ll want to get a good idea of what your costs will look like. So let’s look at the cost of living in Madison to understand what you'll need to rent and thrive there.

Madison Housing Costs

Rental trends slow down during winter, but things kick back into gear as the weather warms up. Expect peak pricing in the summer and rising costs in the spring. According to the latest rent report, this is fairly normal: Madison is in line with national trend rent prices. However, rent prices have decreased slightly over the past month as we move towards colder weather.

The median rent index is currently $1,403 for a one-bedroom apartment and $1,662 for a two-bedroom in Madison. Rent prices have seen a slight increase of 0.7% in the last month. Additionally, the rent prices for a one-bedroom are still 14.8% higher year-over-year, which falls below the national average for year-over-year growth at 7.5% and below the state average of 3.0%.

The Madison housing market has seen steady, significant growth, with median home prices at $390,950. Compared to other major cities across the state, these prices are reasonable, especially when you consider the median price index of New York City is at $668,699, Phoenix is at $463,117, and Miami is now at $654,300.

Madison Transportation

The public transportation system in Madison is amongst the country’s best, covering nearly all of downtown and the campus area.

In Dane County, where you can find Madison, there are four primary public transit providers:

• Metro Transit
• Monona Transit
• Sun Prairie Shared-Ride Taxi
• Stoughton Cab

To get around Madison and enjoy the city and state to its fullest, you might want to have your vehicle. You’ll probably want to have a car to get around and see all of the sights if you plan to make the most out of living in Madison.

You'll spend about $10,050 annually for transportation living in Madison if you're a single adult without children. However, you will pay $18,858 for transportation annually if you are a family of four, including two working adults and two children. Just don’t forget that gasoline prices in Madison are around $2.89 per gallon.

Madison Food Costs

Madison is a hub for great eating and drinking, offering countless dining options and numerous cuisines. Some of the iconic Madison dishes you must try include the old-fashioned donut at Greenbush Bakery, hot and spicy cheese bread from Stella’s Bakery, and the sweet potato oatmeal pancakes at Short Stack Eatery.

Consider the costs associated with eating out in Madison, and expect to pay around $14 per person for a meal at an inexpensive restaurant. That cost rises to $75 for a three-course dinner for two in a mid-range restaurant, excluding tip and alcohol.

You can also expect to pay at least $4,561 on food per year as a single adult without children, or around $13,404 per year for food if you have a family of two working adults and two children.

The good news is you can plan to pay below the national average at local grocery stores like Woodman’s Food Market, Whole Foods Market, or Trader Joe’s. For example, one gallon of regular milk costs $3.56 in the grocery store, while the national average is $4.01.

Madison Healthcare Costs

When planning your budget in Madison, account for proper medical care. A single adult without children will pay around $3,313 for medical care annually while working adults with two children will pay $8,823.

Madison Utilities

Summers in Madison are wet and warm, and July is the hottest month with an average daytime high of 72°F. Winters in Madison are windy, snowy, and freezing. The coldest days of the year fall in January, with an average overnight temperature rarely dropping below 14°F.

Since the winters can be cold and bring lots of snow, you’ll have to account for higher utility bills to stay warm. Madison’s basic utilities include electricity, heating, cooling, water, and garbage, running $196.44 for a 915-sq. ft. apartment.

Adding on the Internet with 60 Mbps or more with unlimited data, cable/ADSL adds $71.03 to your utilities for a total of $267.47 each month. Know what to expect and budget accordingly before you move. You can get a better idea of how much utilities will cost in an apartment.

Madison Fitness and Entertainment

Since the weather can change so drastically throughout the year, you might want to look into a gym membership to maintain your fitness. Choosing this route will add costs associated with keeping fit throughout the year. A fitness club membership fee for one adult is not too bad in Madison, averaging around $63.00 per month. That said, Madison renters often enjoy well-equipped gyms as an amenity. If you're interested in having a gym on site at your rental property, just take our quiz and let us know. We'll hook you up with the greats.

If you're a nature enthusiast, you'll be able to enjoy the beautiful landscape of Wisconsin’s great outdoors, as weather permits. In the winter, you can skate, skii, and snowboard. In the spring and summer, you can go swimming, hiking, and biking.

Madison’s other great outdoor activities include paddling Lake Mendota, strolling the new Alumni Park, and exploring the Olbrich Botanical Gardens.

Of course, you can also enjoy the indoors with plenty of entertainment options throughout the city. Some favorite local activities include visiting the Cave of the Mounds, putting around Vitense Golfland, and exploring the Chazen Museum of Art. Just be sure you account for these additional expenses in your budget.

Other Expenses to Consider in Madison

There is a progressive state income tax in Madison. Additionally, the state sales tax rate is relatively low at 5%, though lookout for additional rates around the county. Thankfully, the total sales tax in Madison is only 5.5%, which includes the state, county, and city sales tax rates.

If you’re moving out of state to Madison, consider costs associated with transportation, hotels, storage, and cross-country movers. Examples of other additional fees that sneak up on you with cross-country moves include pet deposits, security deposits, and application fees.

As you get organized for your move to Madison, don’t overlook costs associated with furnishing your home during the planning process. To help you save some money, get some tips for decorating your apartment on a budget.

What Salary Do I Need to Live in Madison?

Your recommended salary in Madison depends entirely on the lifestyle you plan to lead. The living wage in Madison for a single person without children is $21.38 per hour, which is the basic wage needed to pay for essentials like housing, food, and necessities. Don’t forget to account for extra costs like dining and entertainment, as they are not a part of the living wage when calculating your budget.

The average salary index in Madison is $71,000 per year.

You can also consider the 30% rule for rent to determine your ideal salary in Madison. This rule says you shouldn’t spend more than one-third, or 30%, of your gross income on rent.

For example, if you’re looking for a one-bedroom apartment in Madison with an average rent price of $1,403, you can use the 30% rule to determine your minimum gross income by using the following formula:

10/3 x rent price

Based on this rule, your gross income should be about $4,676 per month or about $56,120 annually.

For budgeting, the living wage, average salary, and recommended salary are three different tools you can use. Keep in mind any other additional living costs, such as dining and entertainment, are not included. Plan to adjust your apartment search for less expensive rent, a higher salary, or both once you add in these costs.

Thankfully, the typical annual salaries for common professions in Madison are highly competitive. For example, the three highest typical annual salaries belong to Management, Computer and Mathematical, and Legal, respectively.

Job Market in Madison

The cost of living in Madison is slightly below the national average, and there is also a strong job market.

According to the U.S. Census Bureau, the median household income in Madison is $74,896, which is above the nation's average of $63,795. The unemployment rate in the city also falls presently below the national average of 3.6%, currently at 2.5%.

Healthcare software is booming in Madison. Other major employers here include the University of Wisconsin-Madison, American Family Insurance, and ZenDesk. Additionally, Madison has become a hotbed for startups and is also developing a reputation for being an incubator for biotechnology.

Final Thoughts

If you're planning a move Madison, the capital of the Badger State, then you’ll need to decide which Madison neighborhood is best for you. We've got you covered. Our quick quiz takes less than 5 minutes and saves you 5 hours of searching for the right match. Register with Apartment List today and start checking out the hundreds of available apartments to rent in Madison!

FAQs: Cost of Living in Madison

How expensive is an apartment in Madison?

A one-bedroom apartment in Madison costs $1,403. A two-bedroom apartment in Madison costs $1,662.

What is the cheapest rent in Madison?

A one-bedroom apartment is the cheapest rent you can get in Madison, with the median rent sitting at $1,403. The average rent for a two-bedroom apartment in Madison is higher at $1,662.

How expensive is it to live in Madison?

In Madison, rent averages $1,403 for a one-bedroom apartment. Transportation costs in Madison amount to $5,356 a year. Food costs $4,010 a year on average for a single resident of Madison.

What is the population of Madison?

According to the U.S. Census Bureau, the population of Madison is 269,196. It is the second-most populated city in the state of Wisconsin.

What is a good salary in Madison?

According to the U.S. Census Bureau, the median household income in Madison is $70,466. However, the recommended salary in Madison is $4,676 per month or $56,120 annually. This total reflects a salary that would allow a renter to live comfortably and afford to cover the median rent for a one-bedroom apartment which sits at $1,403.