Invest In Apartment Buildings In Vermont

Who Rents In Vermont, And Why Supply Is Tight

Vermont has 73,337 renter households, 26.8% of occupied homes, in a state of 647,106 people (U.S. Census ACS 2020–2024). Median gross rent is $1,234 a month, up 25.3% from $985 in the 2015–2019 survey, and median household income rose 31.0% to $81,203. Even so, 48.4% of renter households spend 30% or more of income on housing. The renter count itself fell 3.5% over five years, which says less about demand than about how few rentals there are to move into.

The state's own housing needs assessment for 2025 to 2029 estimates Vermont needs 24,000 to 36,000 more year-round homes, and it put statewide rental vacancy near 3%, against about 5% in a healthy market. Chittenden County, around Burlington, holds the largest share of the state's rental homes and most of its job growth. The University of Vermont is the anchor there, and Beta Technologies, the electric aircraft maker, has become one of the region's major employers and is bringing new renters with it.

For an apartment owner, that means demand in Vermont is concentrated in one county, while the rest of the state is a set of small, older markets. Underwriting a building in Burlington is a different exercise from one in Rutland or Brattleboro.

New Building, Rents And Landlord Rules In Vermont

Vermont's apartment stock is small and old. Buildings with five or more units hold 37,007 homes, just 10.9% of the housing stock, and that count grew only 1.1% in five years (U.S. Census ACS 2020–2024). The median home dates to 1976. The Census rental vacancy rate is 3%, matching the state assessment.

Chittenden County is where that has started to change. According to appraiser Brad Minor of Allen, Brooks and Minor, as reported by VTDigger in June 2026, the county added more than 800 apartments in 2024, about two and a half times its usual pace and the most since 2000, then more than 500 in 2025. Vacancy, below 1% in parts of the pandemic, has moved between 3% and 4% since late 2024 and was 3.3% in mid-2026. Rent inflation slowed from 6.1% in fall 2024 to 3.5% in 2025, and some newer buildings in Winooski and South Burlington were cutting asking rents or offering a month's discount. UVM's enrollment drop this fall is expected to soften demand for undergraduate rentals in Burlington's core.

Vermont gives tenants more notice than many states. There's no statewide rent control. A nonpayment notice gives the tenant 14 days to pay, and ending a month-to-month tenancy without cause takes 30 days' notice in the first two years and 60 days after that, with longer periods in some cities such as Burlington. Income tax is graduated, from 3.35% to a top rate of 8.75% in 2026. Rental buildings pay the nonhomestead education property tax, which the Legislature set at $1.703 per $100 of equalized value for fiscal 2026, on top of municipal rates.

HUD's FY2027 two-bedroom Fair Market Rents range from $1,167 to $2,165 across 256 HUD areas, a reflection of how many small towns the state has. Anyone weighing apartment syndications in Vermont should expect few large buildings to trade, low vacancy, and a property tax bill that matters more than in many states.

Vermont Regions We Watch

Most of the state's sizable apartment buildings are in and around Burlington, so we split that county into parts and treat the rest of Vermont as one group.

Where Vermont Stands Among Its Peers

Among the 47 states where we invest we track, Vermont ranks 22nd for median gross rent, 44th for renter share and 36th for five-year rent growth. Its rents fall in the middle of the pack. Compared with the 2015–2019 survey, Vermont now has about 22,793 more residents, 2,660 fewer renter households and 403 more homes in buildings with 5 or more units. With fewer renter households than before, a building has to win tenants from competitors rather than from new demand.

Largest Vermont Apartment Markets

Burlington is the largest of the 7 Vermont cities we follow. Here are the ten biggest by population, with median gross rent and renter share from the Census Bureau's ACS 2020–2024 estimates.

Rent Versus Income In Vermont

The median rent in Vermont works out to $14,808 a year, about 18.2% of the median household income of $81,203. Under the common 30% guideline, a household needs about $49,400 a year to cover that rent comfortably. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

Since the 2015–2019 survey, the median rent rose $249 a month ($2,988 a year), while median household income rose $19,216 a year. Income has outpaced rent, which means tenants have a bit more room in their budgets than they did five years ago.

Vermont Rental Market In Numbers

These are the core numbers for Vermont, each from the Census Bureau's American Community Survey.

• Vermont has 647,106 residents, up 3.7% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Vermont is $81,203, up 31% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Vermont is $1,234 a month, up 25.3% over five years (U.S. Census ACS 2020–2024).
• 26.8% of households in Vermont rent, about 73,337 renter households (U.S. Census ACS 2020–2024).
• 10.9% of homes in Vermont are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Vermont is 3%, and 48.4% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Vermont was built in 1976 (U.S. Census ACS 2020–2024).

What We Look For In Vermont

Our buy box in Vermont is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Property taxes are a big line item for any Vermont apartment building. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Vermont has no statewide rent control law, though local rules on notices, fees and deposits still apply. Insurance quotes in Vermont reflect winter storm and frozen-pipe claims, so we get a quote before we make an offer.

Given how fast rents rose here, we assume much slower rent growth going forward and make sure the deal still works if rents stay flat for a while.

Evaluating Apartment Syndications In Vermont

Whoever the sponsor is, these are the questions we would want answered about any apartment syndication in Vermont, based on the local numbers above.

• What vacancy does the plan assume? Rental vacancy in Vermont is 3%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 25.3% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Vermont was built in 1976, so roofs, plumbing and electrical systems deserve their own line items.
• How will the building hold occupancy? Renter households in Vermont fell 3.5%, so the plan should show how it keeps units full.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Vermont Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Vermont, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

It's a long-term commitment. The property has to be refinanced or sold before most capital comes back, and the outcome isn't certain. Eligibility rules vary by offering, and most are limited to accredited investors. See investing with Skyline Capital for how we work with limited partners.

Getting Started

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