Professional Market Research Report

Demographics & Economic Data

This demographic and economic analysis focuses on the area around Sample Property, Madison Multifamily, Madison, WI, prioritizing data from the last 24 months. Due to limited specific data for a precise 2-mile radius, the analysis expands to include the 53713 ZIP code, the Burr Oaks neighborhood (where the property is located), and Dane County, explicitly noting the geographic scope for each data point.

Current Population Size and Recent Growth Trends

The immediate vicinity of Sample Property, Madison Multifamily, within the Burr Oaks neighborhood, had an estimated population of 5,200 residents in 2024, showing a 2.5% year-over-year change. Another estimate for Burr Oaks in 2026 places the population at approximately 3,050. The 53713 ZIP code, which encompasses the property, had a population of 24,351 in 2024, with a projected population of 25,268 by 2026. This represents an annual growth rate of 1.9%, consistent with a 9.4% population change from 2019 to 2024.

At the broader Dane County level, the population was 573,000 in 2024 and is projected to reach 588,312 by 2026. This growth reflects an annual rate of 1.4%, contributing to a 6.8% population increase between 2019 and 2024. Dane County is recognized as the second most populated county in Wisconsin.

Median Household Income and Income Distribution

In the Burr Oaks neighborhood, the average annual household income was $72,836 in 2024, with a median income of $58,017, reflecting a 0.3% shift from the previous year. Households led by residents aged 45 to 64 in Burr Oaks earned a median income of $67,841, while those led by individuals aged 25 to 44 had a median income of $58,667.

For the 53713 ZIP code, the median household income in 2024 was $58,017. The income distribution within this ZIP code shows that 55.41% of households earn below $50,000 annually, 39.31% earn between $50,000 and $150,000, and 5.31% have a gross annual income exceeding $150,000. Approximately 19.2% of families in the 53713 ZIP code live in poverty.

Across Dane County, the median household income in 2024 was significantly higher at $89,975, representing a 2.12% one-year growth.

Age Demographics and Household Composition

The median age in the Burr Oaks neighborhood is 30 years. The population distribution includes approximately 18% children under 15, 19.5% aged 15 to 24, 36% aged 25 to 44, 17.7% aged 45 to 64, and 8.8% aged 65 or older. Burr Oaks has 2,543 households with an average of 2 members each; 43.6% are families, while 56.4% consist of individuals living alone or with non-relatives.

Within the 53713 ZIP code, the median age is also 30 years. The age distribution indicates that 25.41% of the population is aged 10 to 24 years, 24.13% is aged 40 to 64 years, and 8.32% is over 64 years of age. Another breakdown for 53713 shows 28% aged 20-29, 15% aged 30-39, and 15% aged 40-49. There are 10,383 households in the 53713 ZIP code, with an average of 2.23 persons per household. About 26.77% of households live alone, 19.83% live with children under 18, and 15.45% live with someone aged 60 years and above.

For Dane County, the median age is 35.7 years as of 2024. The county's population distribution includes 19% aged 20-29, 15% aged 30-39, and 12% aged 40-49.

Employment Statistics and Major Employers

In the Burr Oaks neighborhood, the working population is primarily employed in executive, management, and professional occupations (39.4%), followed by sales and service jobs (30.1%). Clerical, assistant, and tech support occupations account for 16.0%, and manufacturing and laborer occupations for 14.0%. The 53713 ZIP code reported an unemployment rate of 2.1%. Employment by industry sector in 53713 shows 27.05% in educational, healthcare, and social assistance, 12.72% in professional, scientific, management, administrative, and waste management services, 11.65% in manufacturing, and 5.62% in construction.

Dane County's employed population reached 324,319 in 2024, experiencing a 1.58% growth from 2023 to 2024. The unemployment rate in Dane County was 2.4% in 2024, projected to be 2.6% in 2025 and 2.7% in 2026. The most common employment sectors for residents of Dane County are Health Care & Social Assistance (49,785 people), Professional, Scientific, & Technical Services (45,195 people), and Educational Services (43,832 people).

Major employers in the broader Madison area include:

• University of Wisconsin-Madison (over 21,000 employees)
• Epic Systems (over 10,000 employees)
• UW Health (over 10,000 employees)
• State of Wisconsin (over 15,000 employees)
• American Family Insurance (over 4,000 employees)
• Madison Metropolitan School District (over 4,000 employees)
• CUNA Mutual Group (over 3,000 employees)
• City of Madison (over 3,000 employees)

Educational Attainment Levels

In the 53713 ZIP code, 43.25% of the population has completed school-level education, 40.04% have completed Bachelor's studies, and 16.71% have completed graduate-level education.

For Dane County, 96.4% of individuals aged 25 and older had a high school diploma or higher between 2020 and 2024. Furthermore, 55.3% of the population in Dane County held at least a Bachelor's degree during the same period.

Economic Indicators and Development Projects

The multifamily real estate market in Madison is highly competitive. As of Q1 2024, Madison consistently maintained the lowest multifamily vacancy rate nationally at 2.8%. Other reports indicate Madison's vacancy rate was 3.6% in 2025, while Dane County's was 7.1% in the same year. A "stabilized" vacancy rate for professionally managed apartments in Madison was estimated at 4.8% in late 2025.

Average rents in Madison have seen significant increases. The average rent for an apartment in Madison was $1,522 per month in 2024, showing a 0.9% year-over-year increase. More recent data from 2026 indicates an average rent of $1,833, a 2.65% increase from the previous year. Median rents for one- and two-bedroom apartments in Madison increased by 47% since 2020. The median rent for a two-bedroom apartment in Madison was $1,372 in 2024.

Madison is a hotspot for new multifamily permitting, issuing 2,152 permits in the first half of 2024, which translates to 3.1 permits per 1,000 existing residents—more than six times the median across the top 100 U.S. markets. As of 2026, 5,320 housing units are under construction in Madison, with 5,837 multifamily units under construction across the broader region.

The median property value in Dane County was $394,800 in 2024, experiencing a 7.84% one-year growth. The homeownership rate in Dane County was 57.1% in 2024.

A significant development project, the Park Badger Redevelopment, is underway at S. Park Street and W. Badger Road, directly relevant to the subject property. This project, anticipated to begin its land use approval process in March 2026, will include new housing, a public health clinic, and a fire station. The plans feature an eight-story building with approximately 160 one- to three-bedroom units and a five-story building with about 40 senior units. Most of these units will be income-restricted, targeting individuals making up to 60% of the area median income, with others capped at 30%, 50%, or 70%. Dane County's area median income in 2024 was about $88,000 for one person and $126,000 for a family of four. The project also includes two levels of underground parking with roughly 300 spaces.

Actionable Insights and Recommendations for Multifamily Real Estate Investors

The area around Sample Property, Madison Multifamily, Madison, WI, particularly the 53713 ZIP code and Burr Oaks neighborhood, presents a dynamic market for multifamily real estate investors. The consistent population growth in Dane County and the 53713 ZIP code, coupled with a relatively young median age, suggests sustained demand for rental housing. The significant number of households comprising individuals or non-relatives in Burr Oaks and 53713 indicates a strong market for smaller, individual-oriented rental units.

The lower median household income in the 53713 ZIP code and Burr Oaks compared to Dane County suggests a demand for more affordable or moderately priced rental options. This is further supported by the Park Badger Redevelopment project, which focuses on income-restricted apartments. Investors should consider properties that cater to this income bracket, potentially benefiting from consistent demand.

Madison's multifamily market is characterized by low vacancy rates and strong rent growth, making it an attractive investment location. The high volume of multifamily permitting indicates a responsive development environment, though the market remains undersupplied relative to demand. Investors should be aware of the ongoing construction and its potential impact on local supply, particularly in the immediate vicinity of the Park Badger Redevelopment. The presence of major employers like the University of Wisconsin-Madison and Epic Systems provides a stable economic base and a continuous influx of potential renters.

Given the strong demand and ongoing development of income-restricted housing nearby, investors could explore opportunities in value-add properties or new constructions that align with the area's income demographics. Understanding the specific income tiers targeted by new developments can help in positioning existing or new properties competitively.

Migration Trends

This analysis focuses on population migration trends for Madison, WI, as specific data for a 2-mile radius around Sample Property, Madison Multifamily is not available from the search results. The information provided reflects city, metropolitan area, and state-level trends, with recency prioritized to the last 24 months where possible.

Net Migration into/out of the Area over the Last 1-5 Years

Madison, WI, and the broader state of Wisconsin have experienced significant net migration in recent years. The city of Madison's population was 274,851 in 2020 and is projected to reach 288,589 by 2026, indicating an annual growth rate of 0.82% and a 5% increase since 2020. Another projection estimates Madison's 2026 population at 288,042, based on a 1.8% annual rate of change consistent with a 9.0% population change from 2019 to 2024. The Madison-Janesville-Beloit, WI Market is projected to see a 3.1% population change over five years, reaching 1,115,897 by January 2031.

Wisconsin has seen its highest net migration levels in at least two decades, with a marked increase since 2022, rising above pre-pandemic levels. During the 12-month period ending June 30, 2024, Wisconsin gained an estimated net of 28,478 residents through migration, comprising 22,146 from international migration and 6,332 from domestic migration. This migration accounted for 93.2% of Wisconsin's population growth during that period. Since July 2021, Wisconsin has experienced a total net migration of nearly 82,000 residents, with almost three-fourths (over 60,000) attributed to international migration and just over 21,000 to domestic migration.

Top Origin Metro Areas or States That People Moving into This Area Are Coming From

There is no indication of specific top origin metro areas for the immediate vicinity of Sample Property, Madison Multifamily based on available search results. However, for Madison, WI, the state that most migrants moved from (excluding Wisconsin itself) was Minnesota. Historically, Wisconsin has seen immigration from various countries. As of 2017, 31.6% of immigrants to Wisconsin came from Mexico, 8.1% from India, 6.6% from Laos, 3.7% from Thailand, and 3.5% from China, with European nations accounting for 16.8% of the state's immigrant population.

Key Drivers of In-Migration

Several factors contribute to in-migration to the Madison area, including job growth, quality of life, and the appeal of remote work opportunities.

• Job Growth: Madison and Dane County are home to major employers such as Epic Systems, Promega, Exact Sciences, American Family Insurance, and the University of Wisconsin, offering significant job opportunities and economic advancement. Dane County boasts the fastest-growing county population in Wisconsin, driven by diverse industries including biotechnology, information and health technology, agribusiness/food, and precision manufacturing. Madison was also recognized for its tech talent influx, gaining 1.77 tech workers for each one that left in 2020, a 74% increase from 2019.
• Cost of Living: The cost of living in Madison is generally higher than the national average, ranging from 3.8% to 10% more expensive depending on the source. It is also 17% more expensive than the average city in Wisconsin. Housing costs in Madison are notably higher than the national average, with rent for a 1-bedroom apartment in the city center averaging $1,718 per month as of 2026.
• Climate and Lifestyle: Madison is known for its high quality of life, offering lakes, parks, bike trails, festivals, restaurants, and a vibrant arts scene. The city is considered family-friendly, with numerous parks, schools, and attractions like the Henry Vilas Zoo. Madison experiences four distinct seasons, which is an attraction for some. The city's culture values education, healthcare, philanthropy, the arts, the environment, and sustainable living, attracting individuals with similar values. The "Midwest Nice" demeanor of its residents also contributes to a welcoming atmosphere.
• Remote Work: The Madison Metropolitan area ranked 22nd among the 100 largest metropolitan areas nationally for the percentage of workers primarily working from home in 2021. Remote work is seen as a potential driver for climate migration to Wisconsin, as the Midwest is projected to be less affected by climate change. Remote and hybrid work models allow people to work for out-of-state employers without relocating, which can benefit Wisconsin workers. However, proposed state legislation requiring state employees to return to offices could impact Madison's reputation as a remote-work-friendly city and potentially lead some workers to leave.

How This Area's Migration Trend Compares to Broader State and National Migration Patterns

Wisconsin's net migration has significantly increased since 2022, reaching levels not seen in at least two decades, largely driven by a national increase in international migrants. For the three-year period ending June 30, 2024, Wisconsin ranked 26th among all states in average annual per capita net migration and second among the 12 Midwest states. This marks a shift from pre-pandemic years when Wisconsin experienced domestic out-migration.

Nationally, the overall rate of American mobility has been declining, with fewer people moving each year. When people do move, they are more likely to stay within the same U.S. Census region. Between July 2024 and July 2025, the U.S. saw a significant slowdown in population growth, primarily due to a 54% decline in net international migration. This national trend of declining international migration could impact Wisconsin, as nearly three-fourths of the state's net migration since 2021 has been from international sources.

Implications of the Migration Trend for Rental Housing Demand and Absorption

The sustained in-migration to Madison has significant implications for its rental housing market. The market is characterized by an "undersupply" of housing relative to demand, despite ongoing construction. High levels of net in-migration have contributed to strong apartment absorption since 2020, leading to tight rental market conditions.

Rental vacancy rates in Madison, while showing some improvement, remain below the generally considered "healthy" range of 5-7%. CoStar, a private data company, estimated a 4.8% "stabilized" vacancy rate in late 2025 for professionally managed apartment buildings. Another estimate from HUD placed the overall rental vacancy rate at 6.0% as of April 2025, up from 4.1% in April 2020. The lowest cost/quality rental housing (1- and 2-star tiers) has the lowest vacancy rate at 4.6%, indicating a pent-up demand for more affordable options.

The average monthly apartment rent in Madison was $1,612 as of the first quarter of 2025, representing a 3% increase from the previous year. Madison apartments are reportedly rented quickest in the nation, a phenomenon attributed to the influx of young professionals and a limited housing supply relative to the city's growth. This strong demand and relatively low vacancy suggest continued pressure on rental prices and a need for further housing development to meet the needs of a growing population.

Comparable Sales Analysis

This market research report provides a comprehensive comparable analysis for the multifamily property located at Sample Property, Madison Multifamily, Madison, WI. The subject property is an 8-unit complex built in 1960, with approximately 2,988 square feet on 0.4 acres, located in the Burr Oaks neighborhood of the 53713 zip code. Available units at the subject property are listed for $1,150 and $1,300 for 2-bedroom, 1-bath units.

Due to limited specific multifamily sales data within a strict 2-mile radius of Sample Property, Madison Multifamily for the last 24 months, this analysis expands its geographic scope to include the 53713 zip code and the broader Madison/Dane County market, explicitly noting when broader data is used.

Recent Multifamily Property Sales in the Area

There is no indication of recent multifamily property sales with detailed financial metrics specifically within a 2-mile radius of Sample Property, Madison Multifamily based on available search results. The subject property itself last sold for $120,000 on June 26, 2009, according to one source, or $198,900 in 2000 according to another, both outside the 24-month recency requirement.

To provide context, the broader Madison and Dane County market has seen rising income property prices.

Current Market Listings and Asking Prices

Within the 53713 zip code, a multi-family property at 41-47 Sunfish Court, Madison, WI 53713, is currently listed for $1,095,000. Another relevant listing, though outside the immediate zip code, is a 7-unit multifamily property at 3712-3724 Lien Road, Madison, WI 53704, listed for $1,099,900. This property features rents ranging from $1,100 to $1,400 for renovated units. A 4-plex at 25 Coronado Ct, Madison, WI 53705, on Madison's West side, is listed for $1,265,000.

The subject property, Sample Property, Madison Multifamily, has available 2-bedroom, 1-bath units listed for rent at $1,150 and $1,300.

Price Per Unit Trends for Similar Properties

The average price per multifamily unit in Dane County has shown a significant upward trend. In May 2020, the average price per unit was $140,867. This figure reached just under $213,000 through April 2026, marking a new record for the market.

Based on current listings, the 7-unit property at 3712-3724 Lien Road, Madison, WI 53704, has an asking price per unit of approximately $157,128 ($1,099,900 / 7 units). The 4-plex at 25 Coronado Ct, Madison, WI 53705, has an asking price per unit of $316,250 ($1,265,000 / 4 units), which may reflect its smaller size or specific property class.

Cap Rate Ranges Observed in Recent Transactions

Cap rates in the Madison, Wisconsin market show some variability depending on the source and property class. The average cap rate for commercial properties in Madison is reported at 6.95%. For the first quarter of 2026, multifamily cap rates averaged 5.6% across all classes. Another report for Q1 2026 indicates an average of 8.20% for all classes, with Class B Suburban properties, which may be most comparable to the subject, showing cap rates around 7.85%. One source suggests cap rates average 2.5% for long-term rental investors in Madison, typical of premium markets, which appears to be an outlier compared to other general market averages.

Market Absorption Rates and Time on Market

The Madison apartment market demonstrates solid absorption and relatively low vacancy. As of late 2025, the stabilized vacancy rate for professionally managed apartment buildings in Madison was 4.8%, which is approaching the healthy range of 5-7%. In May 2023, Madison recorded a strong apartment occupancy rate of 98%, ranking as the nation's second-highest.

The region saw a net addition of 2,802 multifamily housing units in 2025, which modestly increased the vacancy rate from 5.9% to 6.2%. Currently, there are 5,837 multifamily housing units under construction in the Madison region. As of May 27, 2026, the supply of multifamily listings in Dane County was approximately 2.2 months, indicating a market with high demand and low supply. Older data from May 2020 showed the average days on market for Dane County income properties at 40 days.

Analysis of Pricing Trends and Market Direction

The Madison multifamily market is characterized by rising prices and tight inventory, indicating a strong seller's market. The price per multifamily unit in Dane County reached a new record of just under $213,000 through April 2026. The Gross Rent Multiplier (GRM) for the Madison area was 10.7 through April 2026, suggesting that rents and prices have been increasing at similar rates over the past decade.

Average rent figures for Madison show some variation across sources. As of 2026, the average rent for an apartment in Madison is $1,833, representing a 2.65% increase over the previous year. Conversely, other reports from June 2026 indicate the average rent in Madison is $1,675 per month, a 1% decrease since the previous year, or $1,665 per month, which is 17% lower than the national average and reflects a $35 year-over-year decrease. This suggests some variability in reporting or specific data sets.

The market is supported by a resilient and diversified economy, with the unemployment rate consistently below the national average. Population growth, which increased by over 10% from 2010 to 2020, continues to drive sustained demand for rental housing. Despite a high volume of new units entering the market, demand is projected for an additional 9,675 new rental units over the next three years.

Actionable Insights and Recommendations

The Madison multifamily market, including the 53713 zip code, is currently experiencing high demand and low supply, leading to increasing property values and strong rental income potential. The subject property at Sample Property, Madison Multifamily, an 8-unit building, benefits from this robust market environment.

Given the average price per unit trends in Dane County approaching $213,000, and a comparable 7-unit property listed at approximately $157,128 per unit, the subject property's market value is likely significantly higher than its last recorded sale price from over a decade ago. The estimated values of $848,553 to $867,857 for Sample Property, Madison Multifamily align with the upward trend in the broader market.

To accurately evaluate the subject property's market position, a detailed income and expense analysis is crucial to determine its current Net Operating Income (NOI). Applying the observed cap rate ranges (e.g., 5.6% to 7.85% for multifamily/Class B suburban properties) to the subject's NOI would provide a strong valuation. The current rental rates for the subject's 2-bedroom units ($1,150-$1,300) should be compared against market averages for similar unit types in the Burr Oaks neighborhood and 53713 zip code to assess potential for rent increases. The low months of supply (2.2 months) and strong occupancy rates suggest a favorable environment for landlords.

Crime & Safety

This analysis provides a comprehensive overview of crime and safety within a 3-mile radius of Sample Property, Madison Multifamily, Madison, WI, drawing primarily from data within the last 24 months where available. Due to the limited availability of aggregated crime statistics for a precise 2-mile radius around the subject property, this report expands its geographic scope to a 3-mile radius and incorporates data from the broader Madison area and the nearby Allied Drive/Dunn's Marsh neighborhood, explicitly noting when this broader data is used.

Recent Crime Statistics and Trends for the Area

Madison, WI, experienced a notable decrease in both violent and property crimes in 2025. The Madison Police Department (MPD) reported an overall 16% drop in crime compared to the previous three years (2022-2024). Specifically, homicides decreased by 55%, shots fired incidents by 43%, burglaries by 43%, and vehicle thefts by 52% during this period. Robberies also saw a reduction, down 2% from 2024 to 2025 and over 14% compared to the three-year average. Stolen auto incidents in 2025 were nearly 24% lower than in 2024 and 50% lower than the three-year average.

While city-wide trends show improvement, the immediate vicinity of W Badger Rd, particularly the Allied Drive/Dunn's Marsh area, has historically and continues to exhibit higher crime rates. This neighborhood consistently ranks among Madison's highest-crime areas, with total crime rates approximately three times the national average and violent crime rates about 175% higher than national norms. Recent incidents reported on W Badger Rd include a disorderly conduct on May 31, 2026, a burglary on June 2, 2026, and a report of prostitution on June 1, 2026. An Operating While Intoxicated (OWI) arrest occurred at W Badger Rd and S Park St on May 28, 2026.

Types of Crimes Most Common in the Neighborhood

City-wide, property crime is the most prevalent type of offense in Madison, encompassing larceny-theft, burglary, and motor vehicle theft. Larceny-theft is particularly common, with many incidents concentrated in the downtown area. For the specific area around Sample Property, Madison Multifamily, recent incident reports indicate occurrences of disorderly conduct, burglary, and prostitution. Historically, the nearby Allied Drive area has struggled with gang activity, drug offenses, and violence.

Safety Ratings Compared to City and Metro Averages

Madison's overall crime rate is near the national average, with some sources indicating it is 0.1% higher than the national average, while others suggest it is 23% below the national average as of 2026. Violent crime rates in Madison are generally lower than the national average, with one source stating they are 29% lower, and another indicating 26% lower. Conversely, property crime rates are slightly higher than the national average, with one source reporting 6% higher and another 8% lower. Residents in Madison have approximately a 1 in 353 chance of becoming a victim of violent crime and a 1 in 59 chance of becoming a victim of property crime annually.

In comparison to the state of Wisconsin, Madison's crime rate is higher than 94% of the state's cities and towns. However, when compared to other U.S. cities of similar population size, Madison's crime rate is noticeably lower than the average, making it safer than most comparably sized cities. The Allied Drive/Dunn's Marsh area, which is within the expanded 3-mile radius, has significantly higher crime rates, with total crime rates roughly three times the national average and violent crime about 175% higher than national norms. This suggests that while Madison as a whole performs well against national averages, specific neighborhoods like Allied Drive present a higher safety risk.

Police Response Times and Local Safety Initiatives

There is no indication of specific police response times for the Sample Property, Madison Multifamily area or the broader South District based on available search results. The Madison Police Department (MPD) does provide daily logs of calls for service, with recent daily call volumes ranging from 482 to 496 calls.

The MPD actively implements various safety initiatives and community policing strategies. The department utilizes data-driven patrol strategies to identify crime trends and allocate resources effectively. Community outreach and partnerships with public health departments, community organizations, and mental health professionals are central to their approach. The MPD operates Community Policing Advisory Boards (CPABs) in each of its six districts, including the South District, to gather community input and address local issues. The South District's Community Policing Team consists of a sergeant and five officers dedicated to problem-solving within their district. Recent initiatives include a "Summer Traffic Initiative" focusing on hazardous driving violations and speed enforcement, and an "Amnesty Through Responsible Action" program to encourage reporting of medical emergencies related to alcohol/drugs without fear of underage citations. The MPD also maintains a Community Crime Map to keep the public informed about incidents.

Recent Safety Improvements or Concerns

Significant safety improvements were observed in Madison during 2025, with an overall 16% reduction in crime. This decline included substantial decreases in homicides, shots fired incidents, burglaries, and vehicle thefts, attributed to the MPD's data-driven strategies and community engagement. The MPD's 2025 Annual Report highlights these reductions and their commitment to public safety.

A primary concern for the area around Sample Property, Madison Multifamily is the proximity to the Allied Drive/Dunn's Marsh neighborhood, which continues to be identified as having significantly higher crime rates than the city average. While overall auto thefts decreased in 2025, there has been a spike in stolen auto cases in Madison in 2026, predominantly on the east and north sides of the city. Historical context indicates that Badger Road itself was considered a high-crime area in the past, though investments have been made to improve the area.

Overall Neighborhood Safety Assessment

The area around Sample Property, Madison Multifamily, Madison, WI, presents a mixed safety profile. On a city-wide level, Madison has demonstrated positive trends in crime reduction, particularly in 2025, with significant decreases in violent and property crimes. The Madison Police Department is actively engaged in community policing and data-driven strategies to enhance safety.

However, the immediate vicinity of W Badger Rd, particularly the Allied Drive/Dunn's Marsh area, remains a concern due to its consistently higher crime rates compared to city and national averages. While specific aggregated crime statistics for a precise 2-mile radius are not available, the proximity to a historically and currently higher-crime neighborhood suggests a need for heightened awareness. Recent individual incidents on W Badger Rd, including disorderly conduct and burglary, underscore localized safety considerations. Investors should consider the broader positive trends in Madison while acknowledging the specific, elevated risks associated with the immediate neighborhood, particularly concerning property crime and the historical challenges of the Allied Drive area.

Zoning & Development

Current Zoning Classification and Permitted Uses

There is no indication of the specific zoning classification for Sample Property, Madison Multifamily, Madison, WI, based on available search results. To determine the exact zoning and permitted uses, it would be necessary to consult the City of Madison's official zoning map or planning department resources directly.

Planned Development Projects in the Area

Within a 2-mile radius of Sample Property, Madison Multifamily, a significant planned development is the "Park Badger Redevelopment" located at S. Park Street and W. Badger Road. This four-acre city-owned parcel is envisioned to include up to 350 apartments and 65,000 square feet of office space, with an anticipated completion in 2028. The project aims to address community needs such as affordable housing, a modern public health clinic, and a new fire station. It is being jointly led by the Madison Community Development Authority and The Alexander Company. The redevelopment plan proposes phased development, starting with two mixed-use buildings for affordable and senior housing, alongside public health and emergency services. Future phases will add multi-family housing and community spaces.

The recently approved Southwest Area Plan also highlights opportunities for future development. It recommends allowing for new mixed-use nodes, such as north of Schroeder Road and Raymond Road west of McKenna Boulevard. The plan also suggests boosting allowable mixed-use development at existing single-use strip malls, including those in Meadowood and at McKee and Maple Grove.

Recent Infrastructure Improvements or Planned Upgrades

A notable infrastructure improvement directly impacting W. Badger Rd is the "Badger Rusk Shared-Use Path" project. This project involved the construction of an approximately 0.4-mile-long shared-use path along the north side of W. Badger Rd (from an existing pedestrian overpass bridge to N. Rusk Ave) and along the west side of N. Rusk Ave (from W. Badger Rd to Nygard St). The project also included partial reconstruction of W. Badger Rd and N. Rusk Ave. Construction was substantially completed by November 2025, with final surface paving and pavement markings on W. Badger Rd and N. Rusk Ave. Pavement markings for the shared-use path are expected by spring 2026.

The Southwest Area Plan, approved in June 2026, outlines various city-led projects and initiatives. It mentions that the City will direct a portion of available federal Community Development Block Grant funds to Community Action Strategy (CAS) areas, which include the Allied, Meadowood, and Park Edge/Park Ridge neighborhoods, for small-scale capital improvements if funding is available.

Transportation Projects Affecting the Area

The Badger Rusk Shared-Use Path project, completed in late 2025/early 2026, significantly impacts local transportation by providing a new 10-foot-wide shared-use path for pedestrians and cyclists along W. Badger Rd and N. Rusk Ave.

The Southwest Area Plan emphasizes improving pedestrian and bicyclist safety and connectivity. Specific actions include extending the Hammersley Path west to Elver Park and adding more pedestrian and bicycle connections to and through Elver Park. The plan also proposes extending a shared-use path from Hammersley Park south through the greenway to McKenna Boulevard. Additionally, it recommends upgrading Seminole bicycle facilities to All Ages and Abilities Standards and working with the Wisconsin Department of Transportation (WisDOT) to improve connectivity along the Beltline between the Southwest Path and Seminole Highway. Planned road reconfigurations include South High Point Road to have one travel lane in each direction with a center turn lane and buffered bike lanes. Short-term improvements to Raymond Road, such as adding rectangular rapid flashing beacons (RRFBs) and intersection "bump outs," are also planned to reduce speeds and enhance pedestrian and bicyclist safety.

Madison Metro Transit made adjustments to 11 bus routes in August 2023 based on passenger feedback following a system redesign.

Building Permit Activity and Construction Trends

There is no indication of specific building permit activity or detailed construction trends for Sample Property, Madison Multifamily or its immediate vicinity within the last 24 months based on available search results. General private development project plans are listed by the City of Madison, but these do not provide specific permit details for individual addresses or a localized trend analysis.

Future Development Plans that Could Impact Property Values

The recently approved Southwest Area Plan (June 2026) is the primary document guiding future development in the area, which covers approximately 5,400 acres (8.4 square miles) and is home to about 37,000 residents. The plan aims to accommodate projected growth of 100,000 new residents and 50,000 jobs in Madison between 2020 and 2050, with a portion of this growth expected in the Southwest Area. The plan emphasizes redevelopment of underutilized sites, particularly along transit routes, to accommodate new residents and jobs, which generally uses existing infrastructure and reduces automobile dependency.

Key future development plans that could impact property values include:

• Mixed-Use Development: The plan identifies opportunities for creating new mixed-use areas for neighborhoods and supporting additional development along key streets. It also suggests allowing for new mixed-use nodes and boosting allowable mixed-use development at certain existing strip malls.
• Affordable Housing: A significant focus of the Southwest Area Plan and the Park Badger Redevelopment is to increase affordable housing opportunities. The plan encourages the development of owner-occupied housing, such as townhomes, in areas like Allied Drive.
• Redevelopment of Commercial Areas: Redevelopment of older commercial areas close to the Beltline is expected to become more common. The plan also considers the potential redevelopment of Vitense Golfland, which could lead to a redesign of the Schroeder Road intersection with Whitney Way and subsequent multi-use and commercial development.
• Infrastructure Investment: The plan guides future City projects and programs, including budgeting for infrastructure, parks, stormwater management, community facilities, and economic development initiatives. This includes potential small-scale capital improvements in Community Action Strategy areas.

These plans suggest a future trend towards increased density, mixed-use properties, and enhanced community amenities, which could positively impact property values by increasing demand and improving the overall quality of life in the area. The focus on affordable housing, however, might introduce a broader range of housing price points into the market.

AI Opportunities & Market Potential

This analysis focuses on the AI and technology-driven opportunities in Madison, WI, with a primary focus on the area around Sample Property, Madison Multifamily. Due to limited specific data within a 2-mile radius of the subject property, the scope has been expanded to include city and metro-level data for Madison, WI, and Dane County, explicitly noting this expansion where applicable. Data prioritization is given to information from the last 24 months.

Presence and Growth of AI, Data Center, and Broader Technology Companies

Madison, WI, exhibits a robust and expanding technology sector, significantly influenced by the University of Wisconsin-Madison. While specific data for technology companies, AI firms, or data centers within a 2-mile radius of Sample Property, Madison Multifamily is not available, city-level data indicates substantial growth. As of October 2024, Madison is home to over 700 tech companies. The city was ranked 25th overall in CBRE's 2023 Scoring Tech Talent report, a five-spot increase from the previous year.

The tech talent workforce in Madison grew by 45.2% between 2017 and 2022, marking the fourth-largest gain among all markets and the second-largest among small markets. Major technology companies such as Google, Zendesk, and Microsoft maintain offices in Madison, drawn by collaboration and recruitment opportunities at UW-Madison. Zendesk's Madison team, for instance, expanded from 5 employees in 2013 to over 300 by 2021, serving as its Midwest regional hub.

The AI sector in Madison is also growing, with companies like Tempus AI, Optum, Oshkosh Corporation, Cardamom Health, Polco, Agrograph, Cubismi, and Veda Data Solutions identified as key players. These companies leverage AI and machine learning, particularly in healthcare, with entities like Tempus AI focusing on precision medicine and Veda Data Solutions addressing complex data management in healthcare. UW-Madison's Research, Innovation and Scholarly Excellence Initiative (RISE) has made AI its primary focus, contributing to the city's AI research and deployment expertise.

Regarding data centers, there are 10 facilities operated by 7 providers within the Madison market. Top providers include US Signal, with two sites, and EdgeConneX, with one facility. The largest data center is US Signal: WI02 Madison, spanning 60,000 square feet and offering 6 megawatts of power. EdgeConneX Madison is located approximately 7 miles from downtown Madison. There is no indication of specific AI, data center, or broader technology companies located within a 2-mile radius of Sample Property, Madison Multifamily based on available search results.

Recent or Planned Data Center / AI Infrastructure Investment

There is no indication of recent or planned data center or AI infrastructure investment, including power capacity upgrades, fiber and broadband buildout, or land acquisitions for data center development, specifically within a 2-mile radius of Sample Property, Madison Multifamily based on available search results. However, significant developments are occurring at the city and state levels.

The City of Madison Common Council approved a one-year moratorium on new large-scale data center development (exceeding 10,000 square feet) starting in January 2026. This pause is intended to allow city officials to review zoning regulations and assess the infrastructure demands, particularly concerning electricity and water usage, before approving additional projects.

At the state level, there are substantial planned data center investments. Microsoft is undertaking a $3.3 billion data center project in Mount Pleasant, Wisconsin. Another significant project is the Vantage data center in Port Washington. Alliant Energy is also reportedly attracting data center developer QTS to Dane County for a project that could span over 600 acres in Vienna.

Broadband infrastructure is also seeing investment. Spectrum announced an expansion of gigabit broadband services to over 230 homes and small businesses in parts of northeast Dane County and southeast Columbia County in April 2025. Furthermore, in May 2026, Governor Tony Evers announced $60 million in funding through the State Broadband Expansion Grant Program to extend high-speed internet access to unserved communities across Wisconsin. The Dane County Broadband Task Force, established in 2021, is actively working to expand broadband infrastructure and promote equitable access throughout the county.

Job Growth, Hiring Announcements, or Major Employer Expansions Tied to the AI/Tech Sector

There is no indication of specific job growth, hiring announcements, or major employer expansions tied to the AI/tech sector within a 2-mile radius of Sample Property, Madison Multifamily based on available search results. However, the broader Madison metro area demonstrates significant activity.

Madison's tech talent workforce experienced a 45.2% growth from 2017 to 2022. As of 2022, Madison ranked 11th nationally in the concentration of high-tech jobs. High-tech positions have accounted for more than one in three new jobs created in the Madison metro over the past 12 years. The software publishing sector in Madison has an employment concentration nine times higher than the U.S. average.

Recent job postings in Madison indicate demand for AI-related roles, including AI Engineer, Senior C# Engineer - AI & Automation, Data Review Scientist, AI Trainer, Applied Scientist - AI Trainer, and Software Engineer - AI/Machine Learning. Companies like Epic Systems and Exact Sciences are actively integrating AI into their operations and expanding hiring in related fields. The University of Wisconsin-Madison plays a crucial role in supplying AI talent and fostering research, with applied AI training programs also available at Madison College and through the Wisconsin School of Business.

Several Madison-based tech companies have also secured significant funding recently, indicating growth and potential for future hiring. Fetch, a rewards app company, raised $50 million in funding in March 2024. C-Motive Technologies, focused on sustainable motor technology, has raised over $14.5 million to date. Understory, an insurance provider for climate change risks, secured $15 million in a Series A funding round in June 2024.

State or Local Incentives, Zoning Changes, or Economic Development Programs

There is no indication of state or local incentives, zoning changes, or economic development programs specifically aimed at attracting AI, tech, or data center investment within a 2-mile radius of Sample Property, Madison Multifamily based on available search results. However, city and state-level initiatives are in place.

A significant local development is the City of Madison's one-year moratorium on new large-scale data center developments (over 10,000 square feet), which began in January 2026. This moratorium was enacted to allow the city to develop appropriate zoning policies and research the potential impacts of such facilities on energy, water, and community resources. The city's current zoning code lacks a specific definition or standards for "data centers," which this pause aims to address.

At the state level, Wisconsin offers economic development support through the Wisconsin Economic Development Corporation (WEDC), which assists companies with resources and tools. The state also announced $60 million in May 2026 for the State Broadband Expansion Grant Program to expand high-speed internet access in unserved communities. This funding is intended to close gaps not covered by federally funded programs.

How AI-Driven Demand Could Affect Local Housing and Multifamily Rental Demand

There is no indication of specific analyses or quantitative data directly linking AI-driven demand (such as data center jobs, tech relocations, or remote-work tech employees) to local housing and multifamily rental demand within a 2-mile radius of Sample Property, Madison Multifamily based on available search results. However, broader tech sector growth in Madison suggests potential impacts on the housing market.

Madison's tech sector has experienced significant growth, with its tech talent workforce increasing by 45.2% from 2017 to 2022. This growth is partly attributed to a large number of young people moving to and remaining in Madison for tech jobs. The city has a high concentration of residents in their 20s (16.6%) and a high educational attainment rate (48.8% with a bachelor's degree or higher).

The strong tech presence contributes to a competitive real estate market. The Madison office market had a low vacancy rate of 8.4% in Q4 2022. While not directly tied to AI, the overall expansion of the tech industry and the influx of tech professionals typically lead to increased demand for housing, both for purchase and rent, and can exert upward pressure on housing costs and reduce rental vacancy rates. The growth in high-tech jobs, which accounted for over one-third of new jobs in the Madison metro over the last 12 years, suggests a sustained demand for housing from this sector.

Risks or Headwinds to This Opportunity

The primary risks and headwinds to AI and technology-driven opportunities in Madison, particularly concerning data centers, are related to infrastructure capacity, environmental concerns, and local regulatory responses. There is no indication of specific risks or headwinds within a 2-mile radius of Sample Property, Madison Multifamily based on available search results; these concerns are city-wide or state-wide.

• Data Center Moratorium and Zoning Opposition: The City of Madison's one-year moratorium on new large-scale data center developments (over 10,000 square feet), enacted in January 2026, represents a significant headwind. This pause was initiated due to concerns from residents and experts regarding the potential strain on electricity and water resources, land use planning, and community benefits. While city leaders state the moratorium is not intended to permanently block data centers, business groups, including the Greater Madison Chamber of Commerce, have expressed concerns that it could discourage investment and slow the city's technology sector growth.
• Power Grid Capacity: AI data centers are projected to create unprecedented energy demand in Wisconsin. Two proposed data center projects in the state (Microsoft in Mt. Pleasant and Vantage in Port Washington) alone are estimated to require a combined 3.9 gigawatts (GW) of electric power. This amount is sufficient to power 4.3 million Wisconsin homes, exceeding the state's total of 2.8 million housing units, and is more than three times the power production capacity of Wisconsin's Point Beach nuclear reactor. There are significant concerns about the ability of the existing power grid to meet this demand and the potential for increased utility costs for residents.
• Water Usage Concerns: Large data centers require substantial amounts of water for cooling their servers. A November 2025 analysis by Clean Wisconsin indicated that the intensive energy demands of data centers would lead to a significant increase in water withdrawals across the state, even with on-site water recycling or alternative cooling methods. This analysis suggested that a single AI data center could consume as much water as an entire Wisconsin city. Concerns also exist regarding the potential release of chemicals like PFAS used in cooling systems into the environment. While companies like Microsoft claim significant reductions in water consumption in their newer facilities (90% less than their earliest facilities), public and environmental concerns persist, particularly regarding transparency from developers and utilities.
• Community Opposition and Transparency: The lack of transparency from data center developers and utilities regarding energy and water demands has fueled community opposition. Environmental advocacy groups have called for greater transparency in the approval process for data centers, noting that many discussions occur behind closed doors, limiting public involvement.

Investment Analysis

For institutional investors considering Sample Property, Madison Multifamily, Madison, WI, the market analysis primarily draws upon data for Madison city and Dane County, as specific micro-market data for a 2-mile radius around the property is limited. The property itself is identified as a multi-family (5+ unit) apartment building, constructed in 1960, with 2,988 square feet on a 0.4-acre lot, located in the Burr Oaks neighborhood (ZIP code 53713).

Current Investment Market Trends and Outlook for the Area

The Madison and Dane County real estate market exhibits a dynamic landscape with varying trends across different sectors. The multifamily sector, directly relevant to Sample Property, Madison Multifamily, has seen rising prices per unit, reaching nearly $213,000 through the first four months of 2026, a new record for the market. The gross rent multiplier (GRM) for the Madison area was 10.7 through April 2026, indicating that rents and prices have been rising at similar rates over the last decade. However, multifamily cap rates have flattened in Q1 2026, averaging 5.6% across all classes, with some expansion in 2025. Vacancy rates in the Madison Metro multifamily market increased from 5.9% to 6.2% in 2025 due to new supply, leading to a reduction in year-over-year asking rent price growth from 2.5% to 1.4%.

The residential housing market in Madison continues its upward trajectory in home prices, with the median sale price reaching $412,000 in October 2024, an 8.4% year-over-year increase. As of May 2026, Madison home prices were up 1.4% over the last three months compared to the same period last year, with a median price of $440,000. Homes are taking slightly longer to sell, averaging 48 days on the market in October 2024, up from the previous year. Dane County's median sale price rose from $440,000 in 2024 to $450,000 in 2025.

The industrial real estate market in Madison has experienced significant value appreciation, with the median sale price reaching $91.67 per square foot in 2025, after topping $100 per square foot in 2024. This growth is driven by increased demand from e-commerce, supply chain restructuring, and limited new development. Retail remains one of Madison's strongest commercial property sectors, with an overall vacancy rate of approximately 5.45% in Q2 2026 and positive absorption of over 151,000 square feet year-to-date. The office market is in transition, showing resilience but facing challenges. As of Q2 2024, reported vacancy rates varied, with Cresa reporting 5.9%, Cushman & Wakefield | Boerke at 10.3%, and Oakbrook Corp. at 14.4%. The overall office vacancy rate in Madison was 17.95% in 2024. Despite elevated vacancy, asking rents increased by 2.1% over the past year, slightly above the five-year average.

Key Risk Factors Investors Should Consider

Investors should be mindful of several risk factors in the Madison market. Rising interest rates have made financing more expensive, impacting both acquisition costs and development viability. Construction costs have also increased and remained high, slowing new development across sectors. In the multifamily sector, while demand remains strong, increasing vacancy rates (from 5.9% to 6.2% in 2025) and slowing rent growth (from 2.5% to 1.4% year-over-year) could impact returns. The office market continues to face challenges with persistent vacancies in outdated Class B and C buildings, despite a "flight to quality" trend.

Affordability concerns are also prevalent, particularly for renters and low-income households, which could lead to policy interventions or shifts in demand. The Dane County housing market has experienced slower inventory growth and faster price increases than expected in early 2026, indicating a tight market that can be challenging for buyers.

Investment Opportunities and Growth Drivers

Madison's strong economic fundamentals and demographic trends present significant investment opportunities. The city benefits from a robust job market, particularly in sectors like technology, healthcare, and education, driven by major employers such as Epic Systems and the University of Wisconsin-Madison. This strong job market, coupled with ongoing population growth (20,000 new residents since 2020, making Madison the fastest-growing city in Wisconsin), fuels demand across all real estate sectors.

The multifamily sector, in particular, shows continued demand, with 5,837 units under construction in the region as of January 2026. The city has a goal to build 15,000 new housing units by 2030, with 5,320 units currently under construction. Mixed-use developments are also in high demand, especially in downtown Madison and Dane County, with over 60 projects in various stages of planning or construction. The industrial market continues to be strong due to e-commerce growth and supply chain restructuring.

Market Forecasts and Expert Opinions on the Area

Experts anticipate Madison's residential real estate market to remain robust in 2025 and potentially stronger in 2026, with home prices likely to continue appreciating at a faster rate than in 2024. This is attributed to strong demand and historically limited housing inventory. Mortgage rates are expected to gradually tick down over 2026, which could increase buyer activity and competition. The Dane County real estate market is projected to be a "year of opportunity" in 2026, with increased inventory normalizing competition and strong values supporting sellers.

For the multifamily market, while rent growth has slowed and vacancy rates have increased due to new supply, demand for 9,675 new rental units is expected over the next three years. The office market is expected to see a slow but steady recovery, with renewed interest from tenants and rent performance projected to outpace national trends. Madison has been named the No. 1 up-and-coming city for 2025, suggesting increased interest in various neighborhoods and potential price appreciation.

Regulatory or Policy Changes Affecting Real Estate

The City of Madison has implemented significant zoning and policy changes aimed at increasing housing supply and affordability. The "Housing Forward" initiative includes amendments to the Zoning Code to allow more property owners with deep residential lots to split them for "Backyard Lots" and permits two-unit homes and Accessory Dwelling Units (ADUs) in all residential zoning districts. An update approved in April 2024 allows ADUs alongside buildings with up to eight units, eliminating the requirement for the building owner to occupy the property.

Furthermore, the city approved a zoning change in September 2024 to improve affordable housing, allowing for students from low to moderate-income families to be referred to property owners with Land Use Restriction Agreements. Developers in downtown Madison can now exceed maximum building heights if a portion of the extra units are affordable and rented to those with incomes at or below 60% of the area median income. Requirements within Transit-Oriented Development (TOD) areas have been adjusted to encourage more housing and fewer auto-centric uses, allowing up to four residential units as a permitted use in all residentially zoned properties within the TOD overlay district.

Overall Investment Climate Assessment

Madison, WI, presents a compelling investment climate for institutional investors, particularly in the multifamily sector where Sample Property, Madison Multifamily is situated. The city's diverse and growing economy, anchored by government, education, and expanding tech and healthcare sectors, provides a stable foundation for real estate demand. Strong population growth and the presence of the University of Wisconsin-Madison consistently drive housing demand.

While the multifamily market is experiencing a slight increase in vacancy rates and moderating rent growth due to new supply, the long-term demand for rental units remains robust. The city's proactive regulatory changes, aimed at increasing housing density and affordability, create opportunities for developers and investors willing to engage with these initiatives. Institutional investors should consider the long-term growth prospects driven by Madison's economic strength and demographic trends, balancing the current challenges of higher construction costs and interest rates with the potential for sustained appreciation and rental income. The "flight to quality" trend in the office market and strong performance in retail and industrial sectors also highlight opportunities for diversification within the Madison commercial real estate landscape.