Burlington
Investment Analysis

Burlington, VT
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

Share:
47
Investment Score
Hold
Cap Rate (Est.)
1.9%
Gross Yield
3.1%
P/R Ratio
22.1x
YoY Growth
-1.6%
Median Home Price
$551,600
Average Rent (1BR)
$1,441/mo
Median Income
$68,854
Population
44,649

Investment Breakdown

34
Value Score
34
Growth Score
83
Safety Score
50
Afford Score

Burlington has a price-to-rent ratio of 22.1x, which indicates renting and buying are roughly equal.

The estimated cap rate of 1.9% is below average, typical of appreciation-focused markets.

Year-over-year price growth of -1.6% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $1,441
Annual Gross $17,292

Est. Monthly Expenses

Property Tax (~1.5%) -$690
Insurance (~0.5%) -$230
Maintenance (~1%) -$460
Est. Net Cash Flow $62/mo

Price Forecast 2026–2028

🔮 Burlington Price Forecast 20262028

Based on 5-year Zillow ZHVI trend analysis · Statistical projection
📈 Upward Trend
PROJECTEDNOW$498K2027$554K 11.4%2028$577K 16.0%20232024Now
$606K$458K
Current
$552K
2026
Projected
$554K
11.4% by 2027
Projected
$577K
16.0% by 2028
5yr CAGR:+5.2%
Confidence:Moderate
R²:0.77

For anyone looking at the Burlington housing market forecast through 2028, the data suggests a period of stabilization rather than rapid appreciation. With a current median home price of $497,701 and a recent YoY price change of -1.5%, the market is clearly digesting the rapid gains of the past five years, which saw a cumulative increase of 30.6%. The elevated price-to-rent ratio of 24.9x—significantly above the national average—continues to put pressure on affordability, reinforcing the "RENT" verdict for many prospective residents. While the local economy, anchored by the University of Vermont and a thriving healthcare sector, provides a stable employment base, the high cost of living remains a headwind for new buyers entering the market.

The question of will Burlington home prices drop significantly is complex. The market's strong Risk Grade: A and a moderate "Market Temperature" of 60/100 suggest underlying resilience, supported by a relatively quick 35 Days on Market. However, the combination of high interest rates and constrained inventory will likely keep price growth muted. As we look toward Burlington real estate Burlington 2027, we anticipate a modest recovery in price growth, potentially tracking closer to the historical 5-year CAGR of 5.4% as affordability slowly improves or wages catch up. The city's desirability as a lifestyle hub in New England will prevent a major downturn, but the era of double-digit annual gains appears to be over for now.

Projected Cap Rate (2027)
1.9%
5yr CAGR
+5.2%

Job Market

Unemployment 2.3%
National avg: 3.7%
Job Growth (YoY) +0.8%

Healthcare

87
Score
Excellent

Risk Factors

Low Inventory
Declining Prices

Market Activity

Source: Redfin · 2026-01-31
Sale-to-List 99.2%
Months Supply 4.3
Price Drops 16%
Gone in 2 Wks 32%

Market Position

Affordability Average
Safety Very Safe

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Burlington.

Total ROI
-150%
on $110,320 invested
Annual ROI
NaN%
compounded
Total Return
-$165,517
appreciation + cashflow
Mo. Cash Flow
-$2,887
year 1 estimate
Equity Growth Over 5 Years
Y1115kY2120kY3125kY4130kY5136k
Appreciation
$0
Cash Flow
-$165,517
Final Equity
$136,180

* Estimates based on 0.0% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Burlington

Property

Purchase Price$551,600
Monthly Rent$1,441
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$2,557
Monthly Cash Flow
-$30,678/ year
-27.8%
Cash-on-Cash
0.5%
Cap Rate

Monthly Breakdown

+ Rental Income$1,441
− Mortgage (P&I)$2,789
− Property Tax$552
− Insurance$125
− Maintenance$460
− Vacancy Loss$72
= Net Cash Flow-$2,557

Investment Summary

Down Payment
$110,320
Loan Amount
$441,280
Total Monthly Expenses
$3,998
Gross Yield
3.1%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026