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Community Development

Investing in the Future through Homeownership

Exterior of a newly built home

Owning a home can mean a lot of different things to different people.  

For some, it's about not having to worry about a sudden rent increase they can't afford. For others, it's about the freedom to make a place their own or having enough space for a growing family. But for many families, homeownership is also the primary way to build wealth and financial stability that can last for generations.  

Getting your foot in the door for that opportunity is getting increasingly difficult due to many factors, including a competitive market, limited housing supply, and high interest rates. The challenges are especially stark for first-time homebuyers who may be struggling to come up with money for a down payment. 

According to the City of Madison's most recent Housing Snapshot, the vacancy rate for owner-occupied homes in Madison hasn't been in the “healthy" range in a decade, which has increased demand and sale prices.  With such a low supply of available homes for sale, people with low-to-moderate incomes are struggling to compete with higher-income buyers. Right now, a household making 80% of Madison's Area Median Income cannot afford to buy even the lowest-priced homes on the market without becoming housing cost-burdened.

What is 80% of the Area Median Income?

  • $74,800 1-Person Household
  • $85,450 2-Person Household
  • $96,150 3-Person Household
  • $106,800 4-Person Household

Source: U.S. Department of Housing and Urban Development (HUD), 2026

That is why the Community Development Division has made multiple investments to set qualified homebuyers up for success, including the Home-Buy the American Dream down payment assistance program, homebuyer education services through the Urban League of Greater Madison, and using Federal HOME funds to support down payment assistance programs administered by Habitat for Humanity and Movin' Out. 

All of these programs help new homebuyers navigate the complicated process and reduce the number of barriers that may come up before closing day.

Down payment assistance programs do more than help individuals buy homes—they strengthen our entire community. By making homeownership more accessible, these programs help families build wealth, create neighborhood stability, and invest in Madison's future. When more residents have the opportunity to put down roots, the benefits extend far beyond a single household.

—

Linette Rhodes, City of Madison Community Development Manager

The City of Madison has administered the Home-Buy the American Dream down payment program for 35 years. Between August 1991 and February 2026, the program has provided approximately $15.3 million in deferred loans to 1,425 households across Madison, helping them achieve their dream of owning their own home. 

Residents interested in learning more or applying to the Home-Buy the American Dream program can learn more on the program's website. 

The City of Madison's support for new homeowners doesn't stop with a down payment check. The Urban League of Greater Madison and Movin' Out also provide HUD-certified homebuyer education and counseling that also remove informational barriers to preserve a new homeowners' investment and create pathways to successful homeownership. 

Working with the housing counselor was wonderful. He helped me through the process, and I am forever grateful to Movin' Out and the City of Madison for making this dream of homeownership come true. I'm building equity and I have a place to call my own.

—

Karen, Movin' Out Downpayment Assistance recipient

June is National Homeownership Month, but a number of free workshops and programs are available year-round. You can check the Resources for Homebuyers and Property Owners page for a calendar of upcoming events and information on how to sign up.

The City of Madison's Community Development Division works every day to make sure everyone who lives in Madison thrives and reaches their highest potential. Funding from the Community Development Division supports hundreds of programs from partners across the city, but this support is more than a line item on a budget. It has real-life, everyday impacts for Madisonians.

To highlight some of those significant impacts Community Development funding has on our community, we will be sharing stories every month on the Community Development Division's website.

Additional Information and Resources

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