Cap Rate for Vermont (2026)

How This Calculator Works in Vermont

This cap rate calculator helps you evaluate the return potential of investment properties in Vermont. Enter the property's value, annual rental income, and operating expenses to instantly calculate the cap rate. Compare your result against Vermont's average of 5.5% to see how a specific property stacks up. The calculator is pre-loaded with Vermont averages for quick estimates.

Vermont Overview

The average cap rate in Vermont is 5.5%, with median property values of $300,000 and average 1BR rents of $1,200/month. Vermont is tenant-friendly, requiring careful due diligence on local regulations. Without statewide rent control, Vermont allows market-rate rent adjustments that can improve cap rates over time.

How Vermont Compares

Vermont's cap rate of 5.5% is near the national mid-range. Neighboring New Hampshire has a cap rate of 5.5% and New York is at 5%. Investors often diversify across states with different cap rate profiles to balance cash flow and appreciation.

Vermont's average cap rate of 5.5% places it in balanced market territory. Nationally, cap rates range from about 3.5% in expensive coastal markets to 8% or more in affordable Midwest and Southern states. Higher cap rates indicate better cash-flow returns, while lower cap rates often come with stronger appreciation potential.

Tips for Vermont Residents

• 1The average cap rate in Vermont is 5.5%. Cap rate = net operating income / property value. This moderate cap rate in Vermont offers a balance of cash flow and potential appreciation.
• 2When calculating cap rate in Vermont, deduct all operating expenses: property taxes (1.1%), insurance, maintenance, vacancy, and management fees. Do not include mortgage payments—cap rate measures unleveraged return.
• 3Vermont has no rent control, meaning you can raise rents to market rates and improve your cap rate as the local rental market appreciates.
• 4Compare cap rates across Vermont neighborhoods. Urban cores often have lower cap rates (higher prices, lower yields) while suburban and secondary markets may offer better returns. A 1-2% cap rate difference on a $300,000 property changes annual net income by $3,000-$6,000.
• 5Vermont's tenant-friendly regulations increase operational complexity and risk. Investors should demand higher cap rates in Vermont to compensate for longer eviction timelines and potential rent restrictions.

Frequently Asked Questions