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By Robin Simon, President, Harpoon Capital · About · LinkedIn · Author, The Book on DSCR Loans (Available on Amazon)
The best Vermont markets for real estate investors in 2027 pair entry prices from about $300,000 in Rutland and St. Johnsbury with strong short-term rental potential, led by a 93 AirDNA score in St. Johnsbury and $59,207 in average annual STR revenue in Stowe. Vermont is a small, high-demand housing market with a tourism economy built on ski mountains, lakes and fall foliage, and its six markets below run from Burlington, the state's largest city, and its lakeside neighbor Colchester to Rutland near Killington, the state capital in Montpelier, St. Johnsbury in the Northeast Kingdom and the ski resort town of Stowe. Median sale prices run from about $300,000 in Rutland and St. Johnsbury to about $523,000 in Burlington and well over $1 million in Stowe (Redfin, 2026), and Zillow and BiggerPockets put typical rents between about $1,500 and $2,350 a month. Investors buying here typically finance with Vermont DSCR loans, which are qualified primarily based on the property rather than the borrower's personal income, although in the higher-priced markets the “DSCR Ratio” generally depends on a solid down payment or nightly revenue.
This breakdown uses market data collected as of October 2026, the most current snapshot available heading into next year's buying season. If you're evaluating a purchase in the final months of 2026, keep in mind that your first full year of rental income, appreciation, or short-term rental revenue lands in 2027 regardless of when you close. A deal you underwrite today is already a 2027 investing decision, just one made with the freshest data available right now.
Vermont taxes short-term stays more heavily than most states, with the 9% meals and rooms tax, a 3% short-term rental surcharge on rents collected since August 1, 2024 (Act 183 of 2024) and a 1% local option rooms tax in towns that have adopted one, such as Colchester, Montpelier and Stowe, and Airbnb and Vrbo collect the state and local option taxes for hosts (BNBCalc). Additionally, the state's Division of Fire Safety oversees STR safety, and towns can adopt their own ordinances: Burlington generally limits STRs to the host's primary residence and adds its own city STR tax, while Stowe targets a cap of 850 licenses and assigns new ones by lottery. In practice, i.e. for an investor buying a nightly rental, the town's rules typically matter more than the market averages below.
Vermont's larger markets are also competitive. Redfin's “Compete Scores” run from 83 in Burlington (“very competitive”) down to 34 in St. Johnsbury (“somewhat competitive”), and homes in Colchester and Burlington are selling in a median of just 13 and 15 days. Redfin search data shows Boston buyers (a net 148) looking at Burlington more than any other metro, followed by Washington, D.C. and New York.
Below, we break down six Vermont markets worth watching, using current data from Zillow, Redfin, BiggerPockets, and AirDNA.
Note: Home price appreciation and rent-growth figures below come from Redfin's median sale price data, Zillow's Home Value Index and BiggerPockets' Market Finder, which use different methodologies and can vary from one another, so treat them as directional. Only Burlington has a BiggerPockets page (covering the Burlington-South Burlington metro), so Zillow's figures are used for the other markets. Redfin has no town page for Colchester, so its figures for ZIP code 05446 are used, and Redfin's Stowe figures rest on only six sales, so Zillow's figure is the headline there. AirDNA's Burlington figures cover its Downtown Burlington submarket and its Colchester figures its North Burlington submarket, Rutland and Stowe are submarkets of its Green Mountains market, and St. Johnsbury is a submarket of its Vermont/New Hampshire Area market.
Lake Champlain demand and a primary-residence rule
Burlington is Vermont's largest city, on the shore of Lake Champlain, home to the University of Vermont and its medical center, with the most competitive sales market on this list. It is the market in the article where buyers compete hardest – and where the STR rules most clearly favor long-term rentals.
BiggerPockets points to healthcare, education and technology, with the University of Vermont playing a major role, and Redfin search data (April to June 2026) shows Boston (a net 148), Washington, D.C. (28) and New York (28) buyers looking at Burlington most. However, 70% of local buyers searched to leave the area (October to December 2025), a sign of how stretched local affordability is. First Street data on Redfin rates the flood risk as “minor” (under 1% of properties). On the STR side, Burlington's 2022 ordinance generally limits STRs to the host's primary residence (with exceptions for accessory dwelling units, seasonal properties and one unit in a building with an income-qualified tenant), requires an annual registration ($120 per unit, plus $120 for a whole-unit rental, since May 2026) and adds a city STR tax of up to 9% for affordable housing, which Airbnb collects, on top of the state taxes (BNBCalc).
The Downtown Burlington submarket posts an AirDNA score of 68/100, with Rental Demand (86) leading, Seasonality (68), Regulation (66) and Revenue Growth (65) next, and Investability (58) the “soft spot.” Annual revenue per listing averages $41,283 (down 3.2% year-over-year), with an average daily rate of $215.32 (down 1.9%) and occupancy of 61% (down 2.0%), the highest on the list. Total active listings sit at 385, down 1.3%, and multi-unit houses carry the top end, such as two apartments in a downtown house rented together ($150K a year at 93% occupancy).
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Burlington and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Redfin Housing Market↗ · BiggerPockets Market Finder↗ · BNBCalc Vermont STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Burlington offers the most competitive sales market and the highest STR occupancy in Vermont, on a university and medical job base. Investors should generally buy for the long-term rent, be ready to offer at or near list within days, and treat nightly rentals as an owner-occupied strategy under the city's rules.
Killington's gateway at a Green Mountain discount
Rutland is Vermont's third-largest city, in the shadow of Killington and Pico ski resorts, with Rutland Regional Medical Center and a revitalizing downtown, at less than 60% of Burlington's median price. It is the ski-country value market in the article, with nightly demand that peaks in winter.
The case for Rutland rests on Killington, the largest ski area in the eastern U.S., about 20 minutes away, along with summer mountain biking and hiking, and on a city that offers far lower prices than the mountain itself. However, more than a third of listings saw price cuts, so the long-term rental case rests on the hospital and local employers. First Street data on Redfin rates the flood risk as “minor” (4% of properties). On the STR side, no STR ordinance was found for Rutland City, which runs its own city lodging tax on top of the state's 9% rooms tax and 3% STR surcharge, while neighboring Rutland Town requires an annual $100 registration per unit and a state fire safety inspection, so investors should confirm the rules for each address (Rutland Town).
The Rutland submarket posts an AirDNA score of 70/100, with Investability (78) and Seasonality (76) leading, Regulation (70) and Revenue Growth (69) next, and Rental Demand (53) the “soft spot.” Annual revenue per listing averages $38,350 (up 0.1% year-over-year), with an average daily rate of $266.73 (up 2.2%) and occupancy of 47% (down 2.0%), the lowest on the list. Total active listings sit at 503, down 1.9%, and large estates near the mountain carry the top end, such as an eight-bedroom farm estate ($599K a year) and a mountain home 15 minutes from Killington ($230K). Note that this submarket reaches well beyond the city toward Killington, so the figures describe the region.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Rutland and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · Rutland Town STR FAQ↗ · AirDNA Market Data↗
Investor Takeaway: Rutland offers ski-country demand, the best rent ratio and the lowest prices on this list. Investors should generally buy for the long-term rent in the city, look toward Killington for nightly stays after confirming each town's rules, and use the high share of price cuts to negotiate.
Capital-city tenants on the Winooski
Montpelier is Vermont's capital and the smallest state capital in the country, home to state government and a lively downtown on the Winooski River, with a steady government tenant base. It is a small, competitive market where flood risk is the central question for any buyer.
The case for Montpelier rests on state government, which keeps the tenant base steady through the year, including during the legislative session, and on a small housing stock that keeps competition high. However, First Street data on Redfin rates the flood risk as “extreme,” with 15% of properties exposed, the highest share on the list, and the downtown flooded badly on July 10 and 11, 2023, so flood insurance should be priced before making any offer. On the STR side, no Montpelier STR ordinance was found, and stays carry the state's 9% rooms tax, the 3% STR surcharge and the city's 1% local option tax (BNBCalc).
The Montpelier submarket of AirDNA's Green Mountains market posts a score of 62/100, with Seasonality (75) leading, Rental Demand (68) next, and Investability (63), Revenue Growth (63) and Regulation (63) the “soft spots.” Annual revenue per listing averages $33,979, essentially flat year-over-year, with an average daily rate of $219.51 (up 7.7%) and occupancy of 51% (down 6.1%). Total active listings sit at 566, down 5.8%. Note that this submarket reaches well beyond the city into the surrounding Green Mountain towns.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Montpelier and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · BNBCalc Vermont STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Montpelier offers steady government tenants and a competitive sales market in Vermont's capital, but serious flood exposure. Investors should generally buy for the long-term rent outside the flood zones, price flood insurance early, and use the high share of price cuts to negotiate.
Thinking About One of These Markets?
Get a same-day DSCR Loan quote for a specific deal, or browse the full Harpoon Capital DSCR Loan Program to see rates, LTV, and qualification details before you keep reading.
Lakefront living on Burlington's doorstep
Colchester sits just north of Burlington on Lake Champlain, home to Saint Michael's College and Malletts Bay, with suburban neighborhoods, lakefront camps and easy access to Burlington's jobs. It is the lake-and-suburb market in the article, with some of the highest STR revenue on this list.
The case for Colchester rests on its position next to Burlington, with commuters, college staff and lake lovers keeping demand steady, and on Lake Champlain frontage that draws summer visitors. However, lakefront property carries a premium, so cash flow typically depends on nightly or seasonal income, and First Street data on Redfin rates the flood risk as “minor” (2% of properties). On the STR side, no Colchester STR ordinance was found, and Burlington's primary-residence rule does not apply here, while stays carry the state's 9% rooms tax, the 3% STR surcharge and the town's 1% local option tax (BNBCalc).
The North Burlington submarket, which includes Colchester, posts an AirDNA score of 65/100, with Rental Demand (78), Revenue Growth (71) and Investability (70) leading, Regulation (60) next, and Seasonality (58) the “soft spot.” Annual revenue per listing averages $47,771 (up 4.7% year-over-year), with an average daily rate of $284.50 (up 6.3%) and occupancy of 57% (down 2.8%). Total active listings sit at 289, down 3.0%, and lakefront homes carry the top end, such as a four-bedroom lakefront home with a beach ($242K a year).
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Colchester and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · BNBCalc Vermont STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Colchester offers Lake Champlain frontage and strong STR revenue next to Burlington's job market. Investors should generally focus on lakefront or near-lake homes for nightly stays, confirm the town's rules, and budget for the premium that water access carries.
Northeast Kingdom value and the state's top STR score
St. Johnsbury is the hub of Vermont's Northeast Kingdom, home to the Fairbanks Museum, St. Johnsbury Academy and the Kingdom Trails mountain-biking network nearby in East Burke, with the lowest Zillow home values and the highest STR score on this list. It is the value market in the article, with nightly revenue growing fastest.
The case for St. Johnsbury rests on the Northeast Kingdom's outdoor draw, with Kingdom Trails, Burke Mountain and the lakes bringing visitors in summer and winter, and on prices well below the rest of the state. However, homes are taking longer to sell, and First Street data on Redfin rates the flood risk as “moderate” (12% of properties). On the STR side, St. Johnsbury's $45-per-unit rental registration excludes stays under 30 days, so the town has no STR-specific rule, and stays carry the state's 9% rooms tax and 3% STR surcharge, with no local option tax (BNBCalc).
The Saint Johnsbury submarket posts an AirDNA score of 93/100, the highest in the article, with Revenue Growth (90), Investability (85) and Seasonality (81) leading, Regulation (68) next, and Rental Demand (65) the “soft spot.” Annual revenue per listing averages $30,123 (up 17.9% year-over-year), the fastest revenue growth on the list, with an average daily rate of $185.71 (up 13.0%) and occupancy of 53% (up 3.8%). Total active listings sit at only 50, unchanged from a year ago, and cabins carry the top end, such as a four-bedroom home with kayaks ($69K a year) and a log cabin with a hot tub ($59K at 73% occupancy).
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in St. Johnsbury and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Housing Market↗ · BNBCalc Vermont STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: St. Johnsbury offers the highest STR score and fastest STR revenue growth in Vermont at the lowest home values on this list. Investors should generally use the slow sales pace to negotiate, look for cabins or homes near the trails for nightly stays, and check the flood map for each address.
Mount Mansfield money under a license cap
Stowe sits at the foot of Mount Mansfield, Vermont's highest peak, home to Stowe Mountain Resort, the Trapp Family Lodge and a classic New England village, with the highest STR revenue and nightly rates on this list. It is the classic Vermont vacation market – with two strong seasons and a new cap on licenses!
The case for Stowe rests on two seasons, skiing at Stowe Mountain Resort in winter and hiking, biking and foliage from summer through fall, with a high-end visitor base that keeps nightly rates above $400. However, the Town of Stowe's STR ordinance sets a target cap of 850 licenses starting September 15, 2026, with new licenses assigned by lottery only when the count falls below 850 (the next lottery is set for July 2027), and licenses are not transferable on sale except for inheritance, estate trust and family transfers. Every STR also needs a $100-per-unit registration, its registration number in all ads and a responsible person who can arrive within 45 minutes, and owners who live in Stowe can hold up to two homestead licenses, while stays carry the state taxes and Stowe's 1% local option tax. First Street data on Redfin rates the flood risk as “severe” (7% of properties).
The Stowe submarket posts an AirDNA score of 53/100, the lowest in the article, with Investability (73) leading, Revenue Growth (66), Regulation (66) and Rental Demand (60) next, and Seasonality (52) the “soft spot.” Annual revenue per listing averages $59,207 (up 1.8% year-over-year), the highest in the article, with an average daily rate of $402.02 (up 2.4%), also the highest, and occupancy of 50% (down 1.2%). Total active listings sit at 1,454, down 1.6%, the deepest STR market in the article, and large ski homes carry the top end, such as a 14-bedroom ski lodge ($834K a year) and the Stowe Glass House ($382K).
Financing note: Stowe deals often qualify on TTM actuals or STR revenue projections given the seasonal revenue base, and Harpoon Capital offers industry leading DSCR Loans for properties throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Town of Stowe STR Ordinance↗ · BNBCalc Vermont STR Guide↗ · AirDNA Market Data↗
Investor Takeaway: Stowe offers the highest STR revenue and nightly rates in Vermont, with ski and summer seasons, but new licenses are now capped and assigned by lottery when they open up. Investors should generally confirm a property's license status before making an offer, keeping in mind that licenses do not transfer on sale, and underwrite on trailing twelve-month actuals.
| MARKET | AIRDNA SCORE | ANNUAL REVENUE | AVG. DAILY RATE | OCCUPANCY | YOY LISTING GROWTH |
|---|---|---|---|---|---|
| St. Johnsbury | 93 | $30,123 (+17.9%) | $185.71 (+13.0%) | 53% (+3.8%) | 0.0% (50 listings) |
| Rutland | 70 | $38,350 (+0.1%) | $266.73 (+2.2%) | 47% (-2.0%) | -1.9% (503 listings) |
| Burlington (Downtown) | 68 | $41,283 (-3.2%) | $215.32 (-1.9%) | 61% (-2.0%) | -1.3% (385 listings) |
| Colchester (North Burlington) | 65 | $47,771 (+4.7%) | $284.50 (+6.3%) | 57% (-2.8%) | -3.0% (289 listings) |
| Montpelier | 62 | $33,979 (0.0%) | $219.51 (+7.7%) | 51% (-6.1%) | -5.8% (566 listings) |
| Stowe | 53 | $59,207 (+1.8%) | $402.02 (+2.4%) | 50% (-1.2%) | -1.6% (1,454 listings) |
Source: AirDNA, current as of 2026. Scores and figures reflect each market or submarket as defined by AirDNA and may not correspond 1:1 with city or county boundaries. As of October 2026
A few patterns stand out. Revenue per listing rises with price, from about $30,000 in St. Johnsbury to nearly $60,000 in Stowe, but the AirDNA scores run the other way, because lower entry prices and faster revenue growth count for more in the score than high nightly rates. Occupancy sits between 47% and 61% everywhere, i.e. most Vermont STRs earn on rate rather than volume. Additionally, listings fell or held steady in every market, so new supply is not crowding these markets.
Vermont's real estate landscape offers a strategy for nearly every type of investor:
Market-level data is a starting point, not a substitute for underwriting the specific property, neighborhood and rental strategy in front of you. Vermont leaves STR rules to its towns, which range from Burlington's primary-residence rule to Stowe's license cap and lottery, and combined taxes on nightly stays can top 20% in Burlington, so investors should confirm the rules and tax setup at a specific address before they close and check the flood map in Montpelier and the river towns.
If you are ready to invest in one of these markets, start with our Vermont DSCR loans page.
Sources: Redfin housing market data, BiggerPockets Market Finder, Zillow Home Value Index, AirDNA market and submarket data (airdna.co), BNBCalc Vermont STR guide, the Town of Stowe and Rutland Town. Data collected as of October 2026, ahead of the 2027 investing season.
There is no general statewide STR license, but stays carry the 9% meals and rooms tax, a 3% STR surcharge and any 1% local option tax, which registered platforms collect, and the Division of Fire Safety oversees STR safety. Towns add their own rules, e.g. Burlington generally limits STRs to the host's primary residence and charges a $120 annual registration plus a city STR tax, and Stowe requires a $100 registration and targets a cap of 850 licenses, with a lottery for new ones.
No. Out-of-state and first-time investors can buy investment property in Vermont without any license. A DSCR loan qualifies you primarily based on the property itself rather than your personal income or professional credentials, which is part of why it's such a common financing tool for out-of-state buyers.
A DSCR (Debt Service Coverage Ratio) loan qualifies a property primarily based on the property (its rent, value and location) relative to its mortgage payment, rather than the borrower's personal income or tax returns. If the property's projected or actual rent covers the mortgage payment (a DSCR of 1.00x or higher), it's generally easier to qualify, and Harpoon Capital also offers options for deals below 1.00x.
Generally not. Stowe's ordinance says licenses cannot be transferred on sale, except for inheritance, estate trust and family transfers, and from September 15, 2026 the town targets a cap of 850 licenses, with new ones assigned by lottery when the count falls below the cap (the next lottery is set for July 2027). Investors should typically confirm a property's status with the town and plan for the possibility of waiting for a license or renting long-term.
Harpoon Capital's DSCR loan program allows as little as 15% down on qualifying purchases, up to 85% LTV, with cash-out refinances available up to 80% LTV. Exact terms depend on the property, credit profile, and DSCR ratio. Fill out our DSCR Loan Application to see specific numbers for your deal.
Ready to Run the Numbers on a Vermont Deal?
Whether you're eyeing a long-term rental in Burlington or a ski home in Stowe, get a same-day rate and terms with our two-minute DSCR quote form, or explore the full Vermont DSCR Loans Program to see how we qualify the property, not just the borrower.
This article is for informational purposes only and does not constitute investment, legal, or financial advice. Harpoon Capital encourages investors to conduct independent due diligence before making any real estate investment decision.