3 Vermont cities ranked by estimated cap rate. The average cap rate across Vermont markets is 2.6%, with median home prices averaging $398K and rents averaging $1,743/mo. Burlington leads with a 3.0% cap rate at a $455K median price. Note that Vermont's average property tax rate of 1.59% is above the national average — factor this into your underwriting.
Vermont offers 3 investable rental markets tracked by CapRateCity. The state average cap rate of 2.6% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Vermont home prices average $398K, which is 19% above the national average of $333K. Rents average $1,743/mo. The most affordable entry point is Bennington at $360K, while Burlington offers the highest cap rate at 3.0%.
Taxes and costs: Property taxes average 1.59% across Vermont, above the 1.08% national average — investors should model tax expense carefully. Burlington has the lowest rate at 1.59%.Vacancy averages 3.8%, tighter than the national average — favorable for landlords.
Growth outlook: Population growth across Vermont averages 0.30% per year, led by Burlington at 0.3%. Home values are appreciating at 2.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Vermont is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.