I'm thinking about buying a condo, so that would minimize general maintenance fees. Paying utilities is not really a problem. I hope this is a good move!
This is just my two cents. Condos are tough to sell, especially in this market. Unless you get a residency in Madison, you might be stuck with it and have to pay a mortgage and rent somewhere else. You could possibly rent it out to professional/graduate students when you leave but there is no guarantee you'll be able to cover the mortgage, property taxes, and association fees with this. I am actually going to be rent a room in a condo someone purchased 6 years ago and wasn't able to sell. Property taxes in Madison are quite high compared to other areas in the state ($4000+/yr for a $120,000 property) and condo fees can be pricey too (at about $200/mo). Buying also ties up a lot of your money as you should put 20% down. I don't know your specific situation, but most new med students don't have $35,000-$45,000 in the bank ($20,000-$30,000 for the down payment and closing costs plus 6 months living expenses). You still can get a loan without 20% down, but you will need to pay PMI, which is just wasted money and you will also not get as good of an interest rate. It is getting harder and harder to get a loan without 20% down (as it should be, since putting people without financial stability into homes they couldn't afford is part of the reason why we are in this current economic mess). Unless you know you are pretty sure you want to be in Madison for residency and can put 20% down, I would just rent. It is less hassle, your $ is easily accessible if you need it for an emergency, and there is less stress. Plus, if you buy a nice place you will want to purchase all kinds of nice things to put in it, which is more money. Med school is just 4 years, after which you could purchase a home you would like to live in for years. Sorry if that wasn't what you wanted to hear, but like I said, that is just my two cents.