Everything You Need to Know About Vermont Short Term Rental Market

Vermont is one of the major states on the Northeastern side of the USA. It is a part of the New England region of the United States. It is one of the historic states as well. It contains more than 100 19th-century wooden bridges. Maple syrup is also produced in large quantities in this state. Apart from that, the Vermont short term rental market is also very well established there.

Natural landscapes and thousands of mountain terrain which contain plenty of hiking trails and ski slopes are the main attractions in Vermont. These are the reasons why a lot of people travel to this state to spend their holidays. This high number of tourists also makes the Vermont business successful as these visitors have to stay in rental homes or hotels.

However, you cannot decide whether you should invest in the Vermont short term rental properties or not. You need to collect further data before making a final call. Knowing the reasons that can make your investment in rental properties successful. Furthermore, you also need to collect the data analysis of some top places in the Vermont.

Why You Should Invest In the Vermont Short Term Rental Market

Following are some of the top listed reasons that persuade you to invest in the Vermont short term rental market.

High Construction Costs

Construction costs are very high in Vermont. They are increasing constantly. The main reason behind this high rate is that construction material is not available there. You have to bring this from other states following the hilly paths. So, rates of construction material become very high. So it is difficult for residents of this state to build their new homes. Instead, they prefer to live in rental homes. Therefore, the Vermont rental business has been growing at a rapid rate and is earning big profits for investors.

Affordability

Standards of living are very high in Vermont. Prices of properties and other things are rising continuously. Lack of availability is also a major problem in this state. All these reasons combined with high mortgage rates make it difficult for common residents to afford their own homes. Therefore, the Vermont rental properties show high occupancy rates, making it beneficial for the investors.

High Tourism

Tourism is very high in Vermont. People all across the globe visit this state to explore the beauty of nature and amazing landscapes. This state is also close to history as well. You can witness plenty of things in Vermont that belong to the 19th century. Some fine monuments are also present there that are attracting tourists. This huge number of visitors guaranteed that investment in the Vermont short term rental market would be beneficial.

Top Places in Vermont to Invest in Real Estate

Only knowing the reasons that can make your investment in the Vermont short term rental market beneficial is not enough. You must see the actual results of investments by analyzing the rental data of some top places in Vermont. This will assist you in finding a suitable place for your investment.

1. Arlington

Arlington is a census-designated town in Vermont. The Arlington is a major place in the real estate market of Vermont. Following is the rental data analysis of the place.

• The average occupancy is 63% which will be around 83% in the touring season.
• The average daily rate is $263.
• The median property price is $ 419,900.
• The average rental income is about $1920.
• RIO ratio is pretty acceptable as it’s around 1.5%.
• Rental growth is 11% quarterly development.

2. Bristol

This small town situated in Addison County, Vermont, USA is the best place for tourists. It is bordered by Green Mountain National Forest New Haven River. Many of the Bristol rental properties are of prime importance due to the high number of tourists in this region.

• The average daily rate is $172.
• The average occupancy rate is about 77%, which will be higher than 90% in August.
• Rental demand is 84 and 84% of it is for entire homes only. The rest is for private rooms. No one wants to have a shared room in Bristol.
• The average rental income is $1460.
• The median property price is almost $ 419,900.

Cash on cash value is slightly less than 1%.

3. Burlington

Burlington is a well-developed and highly organized city in northwestern Vermont. Situated along the shore of Lake Champion, the Burlington is of prime importance.

• The average rental income is $6683.
• The median property price is $ 495,000.
• The average occupancy rate is about 83% which will be more than 97% in August.
• The average daily rate is about $298.
• The RIO ratio is about 8.97%.
• The average area of rental properties in Burlington is about 1623 square feet.

4. Cambridge

Cambridge is a big town in Lamoille county, Vermont. It is one of the most populated regions in Vermont. Let’s have a look at the Cambridge rental data analysis.

• The average occupancy rate is 71%.
• The average daily rate is $245.
• The median price for rental properties is $ 175,000.
• The RIO ratio is a hefty 12.97%
• Rental demand is 70 and 81% of it is for entire homes only. The rest is for private rooms.
• Rental growth is 20% quarterly development.

5. Wilmington

Though the occupancy rate is relatively lower in this town, the Wilmington is still beneficial for investors.

• The average occupancy rate is 54%.
• The average daily rate is $363.
• The median property price is $ 411,950.
• The average rental income is $4000.
• Rental growth is 21% quarterly growth.
• Cash in Cash return value is 5–7% which is pretty high.

Rental income and a higher RIO ratio are something that makes this place suitable for investment.

6. Windsor

It is a historical town in Windsor county. It is the place where the Vermont constitution was passed. Due to low property prices and high occupancy rates, the Windsor market has been earning great profits.

• The average occupancy rate is 80%.
• The average daily rate is $215.
• The median property price is 145,000.
• Rental demand is 73 which will be higher in the touring season.
• The average rental income is $500.
• RIO ratio is pretty good as it is about 2.5%.

7. Worcester

Worcester is a small town and historical society in Washington County. Every year plenty of tourists visit this place making the Worcester short term rental market a good place for investment.

• The average occupancy rate is 76%.
• The average daily rate is around $180
• The median price for rental property is $ 430,000.
• The average area of rental property is 6100 square feet.
• RIO ratio is about 1.75%.

Final Thoughts

Now you know everything about the Vermont short term rental markets. There are a lot of places in this state which offer high occupancy and RIO ratio with a relatively lower median property price. Invest in a suitable rental market and start earning big profits.

Go ahead, take a peak in the online app!