Lyndon is home to the best residential real estate investment market in Vermont.
The 05851 zip code in Lyndon presents the greatest opportunity for the best real estate investments among the 128 individual real estate markets in Vermont we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
5 best places to invest in Vermont
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Lyndon | 100 | 4.2 | 56.69% |
| 2 | Barre | 99 | 4.3 | 59.13% |
| 3 | Brandon | 97.1 | 4.5 | 52.61% |
| 4 | St Johnsbury | 96.6 | 4.4 | 52.82% |
| 5 | Northfield | 96.6 | 3.8 | 51.11% |
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1. Lyndon
We've identified the 05851 zip code in Lyndon as Vermont's best real estate investment market. Here's why.
🔎 Key data about Lyndon
| Data point | Value | Rank in state (of 128 markets) |
|---|---|---|
| Zip code | 05851 | N/A |
| InvestScore | 100 | Highest |
| Typical property value | $259,385[1] | 6th lowest |
| Five-year appreciation | 56.69%[2] | 8th highest |
| Household income | $61,935[3] | 26th highest |
| Affordability ratio | 4.2 | 5th most affordable |
| Five-year population growth | -10.2%[4] | 32nd highest |
| Unemployment rate | 1.6%[5] | 4th lowest |
| Property taxes | $3,899[6] | 3rd lowest |
| Educational attainment | 27.7%[7] | 28th highest |
Lyndon (zip code 05851) is the best residential real estate investment market in Vermont. It has the 8th highest property value appreciation among markets we evaluated, with a 56.69% appreciation of the typical property over the last five years.
Lyndon is the 5th most affordable market among the 128 Vermont markets we evaluated, with an affordability ratio of 4.2.
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2. Barre
The 05641 zip code in Barre is the runner-up spot for the best real estate investments in Vermont.
🔎 Key data about Barre
| Data point | Value | Rank in state (of 128 markets) |
|---|---|---|
| Zip code | 05641 | N/A |
| InvestScore | 99 | 2nd highest |
| Typical property value | $294,386[8] | 7th lowest |
| Five-year appreciation | 59.13%[9] | 5th highest |
| Household income | $68,592[10] | 20th highest |
| Affordability ratio | 4.3 | 7th most affordable |
| Five-year population growth | 2.7%[11] | 18th highest |
| Unemployment rate | 4.4%[12] | 20th lowest |
| Property taxes | $4,584[13] | 12th lowest |
| Educational attainment | 31.7%[14] | 24th highest |
The 05641 zip code in Barre features a typical property value of $294,386, the 7th lowest in the state.
Property values have appreciated 59.13% over the past five years, the 5th highest increase among evaluated markets in the state. Barre homes have an affordability ratio of 4.3, the 7th most affordable in the state.
3. Brandon
The 05733 zip code in Brandon comes in at No. 3 in our ranking of the best residential real estate investment markets in Vermont.
🔎 Key data about Brandon
| Data point | Value | Rank in state (of 128 markets) |
|---|---|---|
| Zip code | 05733 | N/A |
| InvestScore | 97.1 | 3rd highest |
| Typical property value | $304,227[15] | 9th lowest |
| Five-year appreciation | 52.61%[16] | 12th highest |
| Household income | $67,780[17] | 22nd highest |
| Affordability ratio | 4.5 | 11th most affordable |
| Five-year population growth | 2.1%[18] | 21st highest |
| Unemployment rate | 0.4%[19] | lowest |
| Property taxes | $4,063[20] | 5th lowest |
| Educational attainment | 28.8%[21] | 26th highest |
With a typical property value of $304,227, Brandon's 05733 zip code features the 9th lowest property values in the state.
Brandon homes have an affordability ratio of 4.5, the 11th most affordable among the markets we evaluated.
4. St Johnsbury
The 05819 zip code in St Johnsbury ranks No. 4 among Vermont's residential real estate investment markets.
🔎 Key data about St Johnsbury
| Data point | Value | Rank in state (of 128 markets) |
|---|---|---|
| Zip code | 05819 | N/A |
| InvestScore | 96.6 | 4th highest |
| Typical property value | $254,527[22] | 3rd lowest |
| Five-year appreciation | 52.82%[23] | 11th highest |
| Household income | $57,747[24] | 11th highest |
| Affordability ratio | 4.4 | 9th most affordable |
| Five-year population growth | -0.1%[25] | 27th highest |
| Unemployment rate | 2.9%[26] | 11st lowest |
| Property taxes | $3,688[27] | 2nd lowest |
| Educational attainment | 33.4%[28] | 22nd highest |
Property values in St Johnsbury's 05819 zip code have seen the 11th highest increase among evaluated markets in the state, with an appreciation of 52.82% over the past five years.
St Johnsbury's affordability ratio of 4.4 makes it the 9th most affordable among the 128 markets we evaluated.
5. Northfield
The 05663 zip code in Northfield rounds out our top five residential real estate investment markets in Vermont.
🔎 Key data about Northfield
| Data point | Value | Rank in state (of 128 markets) |
|---|---|---|
| Zip code | 05663 | N/A |
| InvestScore | 96.6 | 5th highest |
| Typical property value | $307,343[29] | 10th lowest |
| Five-year appreciation | 51.11%[30] | 14th highest |
| Household income | $80,402[31] | 14th highest |
| Affordability ratio | 3.8 | 2nd most affordable |
| Five-year population growth | -0.3%[32] | 28th highest |
| Unemployment rate | 1.7%[33] | 5th lowest |
| Property taxes | $4,801[34] | 14th lowest |
| Educational attainment | 38.2%[35] | 19th highest |
Property values in Northfield's 05663 zip code rose 51.11% over the last five years, ranking the city 14th highest among evaluated markets in Vermont.
Northfield homes have an affordability ratio of 3.8, the 2nd most affordable among the markets we evaluated.
Investing in residential real estate can be one of the best passive real estate investments in Vermont.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Vermont
To determine the best real estate investments in Vermont we evaluated 128 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Vermont.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.
🚨 Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.
