Looking at the numbers, Madison is a market that has maintained steady demand as the capital of Wisconsin and a college town.

The median rent for 2-bedroom to 3-bedroom apartments in Madison is estimated to be between $1,650 and $1,900 per month. This figure is compiled from data from RentCafe and Apartments.com. The median home price is confirmed to be around $400,000 to $430,000 based on Zillow and Redfin.

Dividing the home price of $410,000 by the annual rent of $1,775 x 12 = $21,300 gives a Price-to-Rent Ratio of about 19.2. This falls within the neutral range of 16 to 20, indicating that neither buying nor renting is overwhelmingly advantageous, suggesting a balance point.

Calculating based on a 20% down payment and a 30-year fixed rate of 6.75%, for a $410,000 home, the loan principal would be $328,000, with principal and interest payments around $2,130 per month. Adding property taxes and insurance, the total housing cost is expected to be between $2,450 and $2,600 per month. Compared to the rent of $1,775, this suggests a difference of about $700 to $800 per month. It's worth noting that Wisconsin's property tax rate is somewhat higher than the national average, which is reflected in the total housing costs.

If the $82,000 down payment were invested instead, it would generate an opportunity cost of about $5,700 annually based on a 7% return. This figure should be compared to the expected annual appreciation when buying.

Compared to nearby cities, Milwaukee has a lower median home price than Madison, but in terms of rental yield, Madison appears to be more stable due to student demand. Areas like Middleton and Fitchburg have price ranges that are 5% to 10% lower than Madison.

For Korean households in the Madison area, considering the property tax burden, if there are long-term residency plans, buying could be beneficial for asset formation in this neutral range. However, if there is a possibility of moving to a job related to the university, maintaining flexibility through renting may be a safer choice according to the data. The school district often mentioned among Korean households is the Middleton-Cross Plains school district.