Madison, AL—35756
Real Estate Data & Market Trends
Key Metrics at a Glance
Home Price Trends — Madison, AL
As of Oct '25, the median home price in Madison, AL is $388,000, with a year-over-year change of 1.5%. This indicates that home prices in Madison, AL are increasing. According to Zillow, the 1-year price projection is 0.8%, suggesting a relatively flat housing market in the next year.
Cost per Home Type
| Home Type | Median Home Value | YoY % Change |
|---|---|---|
All Homes | $388,000 | 1.5% |
| Single Family | $388,000 | 1.6% |
| Condos | N/A | N/A |
Cost per Home Size
| Home Size | Median Home Value | YoY % Change |
|---|---|---|
1 Bed | N/A | N/A |
2 Bed | N/A | N/A |
3 Bed | $301,000 | 0.3% |
4 Bed | $419,000 | 1.7% |
| 5 Bed | $570,000 | 3.6% |
% of Housing Stock
Rental Trends — Madison, AL
As of July '25, Rentcast reports the average rent in Madison, AL is $1,960, with a year-over-year rent change of -4.4%. Per bedroom, the median rent as of July '25 in Madison, AL is 1-bedrooms: $1,020, 2-bedrooms: $1,500, 3-bedrooms: $1,840, 4-bedrooms: $2,130. The most common rental property sizes in Madison, AL are 4-bedroom and 3-bedroom, accounting for 32.5% and 23.4% of the rental stock.
| Type | Median Rent | Average Rent |
|---|---|---|
| Average Rent | $1,950 | $1,960 |
| Studio Rent | N/A | N/A |
| 1 Bed Rent | $960 | $1,020 |
| 2 Bed Rent | $1,620 | $1,500 |
| 3 Bed Rent | $1,800 | $1,840 |
| 4 Bed Rent | $2,100 | $2,130 |
% of Rental Stock
Property Listings — Madison, AL
As of Oct '25, Realtor.com reports that the median days on market for a home in Madison, AL is 67. This is a decrease of -11.0% from last year, suggesting that homes are sitting on the market shorter than last year. The percentage of listed homes with a reduced price is 20.0%, representing a small inventory and little supply pressure on home prices.
| Metric | Zip Code Average | Year over Year % Change |
|---|---|---|
Median Listing Price | $505,000 | 24.0% |
Listing Count | 388 | 34.0% |
| Listings as % of Homes | 1.7% | 34.0% |
Days on Market | 67 | -11.0% |
Demographics — Madison, AL
As of the latest ACS Survey released in 2023, Madison, AL has a population of 23,600, which has increased by 65.8% over the past 5 years. Madison, AL is a popular place for families, as children make up 29.0% of the population. The area has a highly educated workforce, with 58.5% of adult residents holding a bachelor’s degree or higher. There are some residents working remotely, with 18.4% reporting working from home.
| Metric | Latest Census | YoY % Change |
|---|---|---|
Population | 23,600 | 65.8% |
% Under 18 | 29.0% | -5.5% |
% Seniors | 8.9% | -9.2% |
% WFH | 18.4% | 425.7% |
% w/ College Degree | 58.5% | 14.9% |
As of the latest ACS Survey released in 2023, Madison, AL is a predominantly white area, with 59.3% of the population identifying as white. The white population has grown by 5.9% in the last 5 years. The second most common race or ethnicity in Madison, AL is black, making up 21.2% of the population. Foreign-born residents account for 8.0% of the population in Madison, AL, and this percentage has increased by 48.1% as of the ACS Survey 5 years prior, suggesting more immigrants are calling the area home.
Race and Ethnicity
| Metric | Latest Census | 5-Year % Change |
|---|---|---|
% White | 59.3% | 5.9% |
% Black | 21.2% | -32.3% |
% Hispanic | 7.3% | 73.8% |
% Asian | 6.3% | 28.6% |
% Foreign Born | 8.0% | 48.1% |
Mortgage and Risk — Madison, AL
According to HUD data as of 2023, there were 1137 mortgage originations in Madison, AL, of which 66.0% of loans were conventional mortgages. The average loan-to-value was 71.0%, with 38.0% above 90% LTV (very high). This implies large mortgage risk in Madison, AL. Investor activity is low, as 2.0% of loans were by investors. 8.0% of loans were cash-out refinances, suggesting few homeowners are tapping equity.
Mortgages
| Metric | Zip Code Average |
|---|---|
Total Loan Originations | 1,137 |
% Conventional Loans | 66.0% |
% Government Loans | 34.0% |
% Investor Loans | 2.0% |
% Second Loans | 1.0% |
% Cash Out Refinance | 8.0% |
Loan Activity
Rentals and Section 8 — Madison, AL
As of 2024, the percent of homes in Madison, AL under the Section 8 program is 3.5%. This is considered low, suggesting that the neighborhood is sparsely composed of Section 8 homes. Section 8 opportunity is good when HUD pays more than market rent. In Madison, AL, all tracked home sizes have HUD payment amounts above market rent, suggesting strong Section 8 opportunity across the board.
Section 8 Market Size
Total Units under HUD | 83 |
Total Units Section 8 | 59 |
% Rentals under Section 8 | 3.5% |
% Occupied Section 8 | 80.0% |
Section 8 Opportunity
| Home Size | HUD Premium | Market Rent | Max HUD Rent |
|---|---|---|---|
| 1 Bedroom | $650 | $960 | $1,610 |
| 2 Bedroom | $250 | $1,620 | $1,870 |
| 3 Bedroom | $610 | $1,800 | $2,410 |
| 4 Bedroom | $840 | $2,100 | $2,940 |
Affordability — Madison, AL
Home Price to Income Ratio
| Metric | Zip Code Average |
|---|---|
| Home Price to Income Ratio | 2.8 |
| Median Home Price | $388,000 |
| Median Household Income | $135,000 |