Over the past decade, the Sherman neighborhood has experienced demographic shifts. The population has remained relatively stable, fluctuating between 2,650 and 3,423 residents. The median income has seen modest growth, increasing from $51,710 in 2013 to $55,096 in 2022.

Racial demographics have shown changes. The white population has decreased from 80% in 2013 to 63% in 2022, while diversity has increased. The Black population has remained relatively stable, while the Hispanic population has grown from 2% to 9%. The percentage of residents identifying as two or more races has increased from 5% to 19%. These demographic shifts, particularly the increase in diversity and the modest income growth, may indicate an ongoing need for affordable housing options in the neighborhood.

The Sherman neighborhood in Madison, Wisconsin, has a substantial LIHTC funded affordable housing presence, with 141 units across three projects. These units account for approximately 12.3% of the estimated housing inventory, which is close to the target for a well-balanced community. The affordable housing stock is primarily composed of one and two-bedroom units, suggesting a focus on smaller households. While no new LIHTC projects have been completed in recent years, the changing demographics, including increased diversity and modest income growth, may indicate a continued need for affordable housing options in the area.