DSCR Loans in Vermont
Last updated: May 2026
Vermont is the most challenging Northeast state for DSCR investing due to its small population, high property taxes, and strong tenant protections, but it rewards patient investors with extremely low vacancy rates and a chronic housing shortage. The state's remote-worker boom, particularly in the Burlington metro, has pushed rents significantly higher since 2020. Vermont's $10,000 relocation incentive program has attracted new residents, further tightening rental supply.
Property Tax
1.83%
State Income Tax
3.35% - 8.75%
Landlord Friendly
Less
Eviction Timeline
2 - 5 months
Property Taxes in Vermont
Vermont property taxes are among the highest in New England, with rates varying by town and the homestead or non-homestead classification. Burlington's effective rate for non-homestead (investment) properties is approximately 2.14%, while Rutland averages about 2.35%. Brattleboro sits near 2.0%, and most ski-town properties carry similarly elevated rates.
Insurance Costs
Typical investment property insurance in Vermont runs $900 - $1,400/yr. Vermont's primary insurance risk factors are severe winter weather, including heavy snow loads, ice dams, and spring flooding from snowmelt. The 2023 floods demonstrated significant river-valley flood risk in Montpelier and other central Vermont communities, prompting higher premiums in affected areas.
Landlord-Tenant Laws
Vermont is one of the less landlord-friendly states in New England. The state requires landlords to provide 60 days' written notice for lease non-renewal on tenancies over two years, and 30 days for shorter tenancies. Evictions must go through Superior Court and can take two to five months. There is no statutory limit on security deposits, but landlords must return them within 14 days.
Top Investment Markets in Vermont
Burlington
UVM and UVM Medical Center drive the tightest rental market in the state, with vacancy rates consistently below 1.5%.
South Burlington
Suburban overflow from Burlington with new mixed-use developments and proximity to the airport and tech employers.
Rutland
Most affordable entry point in the state with median prices under $200K and a blue-collar tenant base anchored by healthcare and manufacturing.
DSCR Considerations in Vermont
Vermont's small market size and limited inventory make DSCR deals harder to source, but the extreme housing shortage supports very low vacancy rates. High property tax rates on non-homestead properties and elevated heating costs are the biggest drags on cash flow. Burlington-area properties are the most likely to achieve a 1.0x DSCR, but investors should expect to make larger down payments to get there.
Run the numbers for Vermont
Use our free DSCR calculator to see if your Vermont investment property pencils out.
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