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Rent v Buy

Rent vs Buy in Vermont

Vermont's housing market sits near national norms, with a median listing price of $495,000. The rent-vs-buy decision here turns mostly on how long you plan to stay and the specific home you have in mind.

The state's effective property tax rate, at 1.83%, adds meaningfully to the monthly cost of owning. The calculator below pre-fills with national defaults; switch the state picker to Vermont to load the local numbers.

What the numbers say

Vermont's key housing-cost metrics sit broadly in line with national norms. The rent vs buy comparison here is sensitive to your specific down payment, mortgage rate, and planned stay length, rather than any single state-level outlier.

Average rent in Vermont runs about $1,500 per month, or $18,000 per year for a comparable home. That figure is the anchor for the rent half of the comparison. Rent growth, not just the starting rent, drives the long-run total - small differences in annual increases compound noticeably over a 7 to 10 year horizon.

Vermont's recent appreciation trend sits near 7.5% annually. For a long-horizon model, the national long-run FHFA House Price Index average runs closer to 3 to 3.5%, which is what we use as a conservative anchor in the calculator. Recent post-pandemic appreciation has been higher in many states, but the conservative figure protects against overstating equity build.

How Vermont's property tax rate shapes the buy decision

On a $495,000 home at 1.83%, property tax alone runs about $755 per month, or $9,059 per year. That is on top of mortgage principal and interest, homeowners insurance, and maintenance.

In the rent vs buy comparison, that property-tax line is one of the largest fixed costs of owning that a renter does not pay directly. Higher property taxes push the break-even point (the year at which cumulative buying costs fall below cumulative renting costs) further out compared with a lower-tax state at the same price level.

Use the calculator below to model your scenario, then adjust the property tax slider to see how a 0.5% swing in the effective rate changes the cumulative cost picture.

Want a calculator pre-filled with Vermont defaults? Click below; the state defaults load automatically.
Open with Vermont defaults

Home Purchase

Enter details about the home you're considering buying

Quick fill:
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Renting

Enter details about your rental alternative

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Time Horizon & Market

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Detailed mode adds 17 more inputs including advanced assumptions.

Buying is cheaper over 7 years

by $31,485

Buying comes out ahead, though the margin is meaningful only if you stay the full term and your assumptions hold roughly true.

High Confidence

The result is robust across small changes to your inputs.

Total cost of buying

$387,138

Average $4,609 per month over 7 years

Total cost of renting

$207,949

Average $2,476 per month over 7 years

Equity Built

$245,691

What you've paid down on the loan principal over 7 years.

Net Sale Proceeds

$211,339

What you'd walk away with after selling, minus closing costs.

Investment Growth

$65,204

What the down payment could grow to if invested instead of used to buy.

This chart shows total dollars spent on each path, month by month. With your inputs and time horizon, renting stays ahead the entire time.

Frequently Asked Questions

Vermont's median listing price is $495,000. That is 12% above the unweighted state-level national mean of $443,255. The gap matters more when paired with local rent levels and how long you plan to stay.

Vermont's effective property tax rate is 1.83%. On a $495,000 home (the state median), that works out to about $755 per month, or $9,059 per year. Property tax is one of the largest fixed costs of owning that a renter does not pay directly.

Buying typically does not pay off within 3 years in any U.S. market once you account for 3 to 5% closing costs on the way in and 5 to 7% selling costs on the way out. In Vermont, with a median listing price of $495,000, those two transaction costs alone come to roughly $19,800 on the buy side and $29,700 on the sell side. Appreciation would need to be unusually strong to recover that within 36 months, so renting is almost always the financially better choice for stays this short.

Most lenders use a 28 to 31% housing-cost ratio. For Vermont's median listing price of $495,000 with 20% down at a 7.0% mortgage rate over 30 years, the monthly numbers run roughly: principal and interest $2,635, property tax $755, insurance $92, total $3,481. At a 28% housing-cost ratio, that implies gross annual household income of about $149,192. No HOA dues and no PMI in this estimate (20% down clears the PMI threshold). Use our affordability calculator to model your specific scenario.

Typical break-even points run 5 to 8 years across most U.S. markets. In Vermont, with a median listing price of $495,000 and average rent of $1,500 per month, the break-even depends most on your down payment, the mortgage rate you lock, and rent growth between now and your eventual move. Use our rent-vs-buy calculator to compute it for your specific scenario.

By Barron Hansen, Founder · Last reviewed