Nestled among the historic, Federal-style homes of Madison is the Federal Housing Administration (FHA) Model Home at 311 West Third Street. The Federal Housing Administration funded its construction in 1936 in an attempt to stimulate the building industry. Small, compact homes of this sort were built across the country as part of an effort to convince Americans to use available FHA-backed loans to build new houses during the years of the Great Depression.

Demonstrations occurred during the house’s construction, illustrating the uses of certain building materials and advertising their manufacturers. An open house following the house’s completion in 1936 gave the public an opportunity to view this modern home. It was one of two houses the Federal Housing Administration built in Indiana, outside Indianapolis.

This late addition to historic Madison was built in the Colonial Revival style, as is expressed through the rounded pediment over its entry porch and its paired windows. This choice of style, as well as the home’s small size, makes it compatible with its neighborhood. It neither pretends to be as old as its neighbors, nor is it so modern as to detract from them.

The Federal Housing Administration Model Home contributes to the historic significance of the Madison Historic District, which is listed in the National Register of Historic Places and designated a National Historic Landmark.