Vermont Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in Vermont — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on Vermont rentals
Property tax
1.83%
effective rate on median home value
At 1.83% effective, this is one of the highest property tax burdens in the country (rank 48 of 51). Every underwrite needs to account for the full carrying cost — even a strong rent-to-price ratio can go negative once property tax is properly modeled.
State income tax
8.75%
top marginal rate
A top marginal rate of 8.75% is high nationally. Rental portfolio income at scale takes a significant state hit on top of federal, so serious operators lean hard on depreciation, cost segregation and 1031 deferral. Long-term hold economics reward staying under the top bracket where possible.
Security deposit rule
No statutory cap on security deposits. Landlords set the deposit at whatever the market accepts — typically one to two months' rent, sometimes more for higher-risk applicants or pets. Local ordinances may still apply.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in Vermont
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using Vermont’s 1.83% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Rutland, VT | $316,724 | $1,398 | $5,796 | $-1,095 |
| Bennington, VT | $380,467 | $1,777 | $6,963 | $-1,242 |
| Barre, VT | $397,513 | $1,637 | $7,274 | $-1,462 |
| Burlington, VT | $472,552 | $2,095 | $8,648 | $-1,626 |
State median across these metros: $388,990 home, $1,707 rent, $-1,352/mo modeled cash flow.
Track your Vermont rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each Vermont property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.