Winooski Leads Vermont With Highest Rental Yields in 2026

Winooski has emerged as Vermont’s top suburb for rental property investors, with new figures showing the city’s gross rental yields surpass those of any other area in the state this year.

The news comes as Vermont’s real estate market continues to attract buyers from across New England and beyond, driven by tight inventory in Burlington and Montpelier. With home prices rising steadily in the last two years, investors are searching for value and above-average returns. For many, that search now leads straight to Winooski, where a blend of youthful energy and ongoing development is reshaping the city’s housing landscape.

Winooski’s Rise: Location and Value

Located just across the river from Burlington’s Old North End, Winooski has transformed over the past decade. The city centre, clustered around the iconic Winooski traffic circle, now hosts popular venues like the Monkey House and local restaurants such as Misery Loves Co. Community-driven organizations, including the Winooski Partnership for Prevention, have supported both residents and newcomers as the area welcomes more renters.

Developers have taken note as well, with recent projects on Main Street and East Allen Street adding hundreds of new apartment homes. Improvement initiatives like the Winooski Downtown Redevelopment Plan have revitalized key blocks, boosting walkability and public space. These upgrades-along with proximity to University of Vermont and the tech corridor off Interstate 89-have made the area highly attractive to tenants, particularly younger professionals and graduate students.

Rental Yields Top the State

According to data supplied by Vermont Housing Data, Winooski’s median apartment rent reached $1,750 per month in June 2026. Meanwhile, the median home sale price in the city remains around $308,000-significantly lower than Burlington’s, which crossed $450,000 earlier this spring. That combination of strong rents and moderate purchase prices translates into a gross rental yield north of 6.8%, currently the highest in the state. For comparison, Chittenden County overall posted a yield of just 5.2% for new investment properties during the same period.

Rental demand is holding up despite recent supply growth, with vacancy rates in Winooski sitting at approximately 2.4% as of June, according to figures from the Vermont State Housing Authority. Several real estate brokerages, such as Coldwell Banker Hickok & Boardman, have identified Winooski as a ‘top opportunity’ for landlords seeking regular income in 2026.

Looking ahead, real estate professionals expect continued interest in Winooski’s rental market. New construction projects are set to bring more units to Malletts Bay Avenue and weave in additional retail amenities. For investors considering a first foray or seeking to expand their Vermont portfolio, the advice is simple: act quickly, as yields in the riverside suburb remain unmatched for now. Prudence and thorough due diligence remain crucial, especially with ongoing discussions at the Winooski Housing Commission on regulation and tenant protections. Still, few suburbs offer today’s combination of affordability and return as consistently as Winooski.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.