Invest In Apartment Buildings In Chittenden County, VT

What Drives Rental Demand In Chittenden County

Rental demand in Chittenden County comes from 25,777 renter households, which is 36.1% of occupied housing (ACS 2020–2024). Renter households rose 3.5% over five years, close to the population trend (up 4.4%).

The typical Chittenden County household earns $96,759 a year, 31.4% more than in the 2015–2019 survey. The number of employed residents rose 6.3% over the same period, and unemployment stood at 3.2%. Rent and income have moved at a similar pace (31.5% and 31.4%), so affordability hasn't shifted much.

Renters are a large minority in Chittenden County. Buildings close to employers and main roads usually see the steadiest demand.

Rents, Vacancy And Supply In Chittenden County

Median gross rent in Chittenden County, VT is $1,646 a month, up 31.5% from $1,252 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's fast growth. Part of it reflects the national rent run-up of 2021 and 2022, and some of it can fade when new buildings open nearby, so we don't project the same pace forward.

Rental vacancy is 1.3%, which is tight. Vacant units in Chittenden County tend to lease quickly. 50.4% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 21.4% of homes in Chittenden County are in buildings with 5 or more units, roughly 15,999 homes. That count rose 10% over five years, a sign of meaningful new apartment construction that newer buildings will compete with. The median home was built in 1981, so many apartment buildings date from the 1970s and 1980s. That vintage is a common target for value-add renovation.

Where Chittenden County Stands Among Its Peers

Compared with the 2015–2019 survey, Chittenden County now has about 7,112 more residents, 872 more renter households and 1,454 more homes in buildings with 5 or more units. New homes in 5+ unit buildings outpaced the growth in renter households, so newer buildings are competing for tenants and older ones may need to offer more to keep them.

Cities In Chittenden County At A Glance

We follow 3 cities in Chittenden County. The largest is Burlington, with a median gross rent of $1,649 a month.

Chittenden County Compared With Vermont

Chittenden County's median gross rent of $1,646 is above the Vermont median of $1,234.

Chittenden County Rent Affordability In Dollars

The median rent in Chittenden County works out to $19,752 a year, about 20.4% of the median household income of $96,759. Under the common 30% guideline, a household needs about $65,800 a year to cover that rent comfortably. That's a heavier load than the Vermont average of 18.2%. 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 $394 a month ($4,728 a year), while median household income rose $23,122 a year. The two have moved together, so affordability today looks much like it did five years ago.

Chittenden County Rental Market In Numbers

If you only read one part of this page, read this list. Every figure is from the Census Bureau's ACS 5-year estimates.

• Chittenden County, VT has 169,758 residents, up 4.4% from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Chittenden County, VT is $96,759, up 31.4% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Chittenden County, VT is $1,646 a month, up 31.5% over five years (U.S. Census ACS 2020–2024).
• 36.1% of households in Chittenden County, VT rent, about 25,777 renter households (U.S. Census ACS 2020–2024).
• 21.4% of homes in Chittenden County, VT are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Chittenden County, VT is 1.3%, and 50.4% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Chittenden County, VT was built in 1981 (U.S. Census ACS 2020–2024).

What We Look For In Chittenden County

Skyline buys 5+ unit apartment buildings in Chittenden County that either run well today or can run better with new management or renovation. We start with rents, occupancy and the condition of the building, and we price on what the property earns now.

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.

Due Diligence For Apartment Syndications In Chittenden County

The data on this page turns into a short checklist for evaluating an apartment syndication in Chittenden County.

• What vacancy does the plan assume? Rental vacancy in Chittenden County is 1.3%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 31.5% 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.
• How big is the repair reserve? The median home in Chittenden County was built in 1981, and even newer buildings need money set aside for roofs, HVAC and appliances.
• How will the building compete with new supply? Homes in 5+ unit buildings in Chittenden County rose 10% over five years, so newer properties are part of the competition.
• 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 Chittenden County Apartment Syndication Works

In an apartment syndication, Skyline acts as the general partner. We find the Chittenden County property, negotiate the purchase, arrange the loan and oversee management and any renovation. Limited partners put in capital and own a share of the entity that owns the building. They don't sign on the loan or deal with tenants and repairs.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

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