Median home: $355,000 | Mortgage rate: 7% | Property tax: 1.78% | Insurance: $1,050/yr
Vermont is a scenic New England state with a growing remote-work market. With a median home price of $355,000 and mortgage rates averaging 7%, understanding what you can afford before house hunting is essential.
The 28/36 rule is the gold standard: spend no more than 28% of gross income on housing and no more than 36% on total debt. In Vermont, with a property tax rate of 1.78% and average insurance of $1,050/year, these costs add significantly to your monthly payment beyond just principal and interest.
A 20% down payment on the median Vermont home requires $71,000. FHA loans with 3.5% down need just $12,425, but you will pay mortgage insurance. Vermont funds schools through a statewide property tax — rates vary significantly by town.
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Based on the 28/36 rule, your total housing payment should not exceed 28% of gross monthly income, and total debts should stay under 36%. In Vermont, with median home prices at $355,000, you typically need a household income of at least $355,000 to afford the median home.
To afford the median Vermont home at $355,000 with 20% down at 7% interest, you need approximately $80,977 annual household income. This is based on the 28% housing cost guideline.
The median home price in Vermont is approximately $355,000 as of 2026. Prices vary significantly by city and county. Vermont is a scenic New England state with a growing remote-work market.
A 20% down payment on the median Vermont home ($355,000) is $71,000. FHA loans allow 3.5% down ($12,425) and VA loans offer 0% down for eligible veterans.
Vermont has a property tax rate of 1.78%, which is above the national average. On the median home, that is $6,319/year. Vermont funds schools through a statewide property tax — rates vary significantly by town.