In Burlington's Old North End, many houses that look like single-family homes from the street hold two, three or four apartments inside. That converted stock, plus purpose-built multi-families in Winooski and the South End, makes up much of the city's small rental market.
In short: LendingStreet finances Burlington-area duplexes, triplexes and fourplexes with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and the standard minimum DSCR is 1.0x. Vermont's non-homestead taxes are often the deciding line, so many Burlington buyers plan on 70% to 75% leverage.
The Old North End, between downtown and the Winooski River, has the city's densest stock of older two- to four-unit buildings, many of them 19th-century houses split into apartments. The Hill Section and the blocks around UVM have large older homes divided into units, often leased to students. The South End and the streets near Pine Street have duplexes and small apartment buildings.
Across the river, Winooski has triplexes and fourplexes close to its downtown circle. South Burlington and Essex Junction have newer duplexes and townhome-style buildings.
Converted buildings are the norm rather than the exception. A typical Old North End house might have a first-floor unit, a second-floor unit and a third unit in the attic or rear ell, each added at different times. That history affects everything from fire separation to utility setup, so ask for permits and plans when you can get them.
Burlington has one of the tightest rental markets in New England. Tenants include students at UVM and Champlain College, staff at the UVM Medical Center, and workers across the county. Rents are high for Vermont, but so are prices and taxes. The table is a general guide; confirm with current leases.
Vacancy has been very low in Burlington for years, which supports rents and reduces turnover risk. It also means units rarely sit empty, so a lender's market rent estimate for a vacant unit tends to be well supported by nearby leases.
| Area | Typical stock | What to check |
|---|---|---|
| Old North End | Converted houses with 2-4 units | Legal unit count, older systems, lead paint |
| Hill Section, near UVM | Large older homes split into units | Student leases, occupancy limits |
| South End | Duplexes and small buildings | Mixed-use zoning nearby |
| Winooski | Triplexes and fourplexes | City rules, parking |
| South Burlington, Essex | Newer duplexes | HOA rules, newer construction |
Vermont's HOME Act, passed in 2023, requires many municipalities to allow duplexes wherever single-family homes are allowed, and more units in areas served by water and sewer. Burlington has also revised its own zoning to allow more housing. Ask the city's planning office what is allowed on your lot today.
For financing, only legal units count. Burlington records show permitted unit counts, and older conversions sometimes have more apartments than the city recognizes. A unit without approval will not be counted toward rent, and it may affect insurance.
This example is illustrative and not a quote. An investor buys an Old North End triplex for $640,000. The units lease for $1,700, $1,650 and $1,500, a combined $4,850 a month. Taxes at the non-homestead rate are budgeted at $1,050 a month and insurance at $250.
At 75% LTV the loan is $480,000. Estimated principal and interest on a 30-year term is about $3,307, the total payment is about $4,607 and DSCR is about 1.05x. At 70% LTV the loan is $448,000, estimated principal and interest is about $3,087, the payment is about $4,387 and DSCR is about 1.11x. Both clear the 1.0x standard minimum, with more room at 70%.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $480,000 | $448,000 |
| Estimated principal and interest | $3,307 | $3,087 |
| Taxes and insurance | $1,300 | $1,300 |
| Total monthly payment | $4,607 | $4,387 |
| Combined rent | $4,850 | $4,850 |
| DSCR | About 1.05x | About 1.11x |
Vermont's education property tax splits property into homestead and non-homestead. A rental is non-homestead, and that rate often differs from the homestead rate a prior owner-occupant paid. Burlington's municipal rate is added on top. Use the current non-homestead bill or the assessor's estimate in your numbers.
In Vermont, the buyer generally pays the property transfer tax, and investment property does not get the lower rates available on part of a primary residence purchase. Add it, along with title and recording costs, to your cash needed at closing.
Lenders also escrow taxes and insurance in the monthly payment, so the full annual tax bill divided by 12 belongs in the DSCR calculation. If a property's assessment is out of date, ask whether the town has a reappraisal planned, since Vermont towns reappraise periodically and values can jump.
Burlington runs a rental housing inspection program and charges an annual registration fee for rental units. Before you buy, confirm the registration and ask for the most recent inspection report. Then check the building itself:
Buildings near UVM and Champlain College often turn over in late May and re-lease in August. If you buy in spring, units may be empty for the summer. Lenders can use market rent estimates for vacant units, but signed fall leases give stronger support. Some programs look at lease terms closely when a building relies on student tenants.
The city also limits the number of unrelated adults who can share a unit in some zones. Check that your planned occupancy fits those limits before you count on rent from a large student unit.
Five to eight unit buildings are still residential, though max LTV can be lower and varies by program; see our 5-8 unit Burlington page. If you own five or more Burlington-area rentals, a blanket portfolio loan can put them under one note. To get a quote, send the address, price, rent roll and tax bill through the form below or call (877) 298-1001.
Yes. The loan qualifies on the combined rent of all three units, with no W-2s or tax returns.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Rentals are non-homestead property in Vermont, and the non-homestead education rate often differs from the homestead rate.
Generally the buyer. Investment property does not get the lower primary residence rates.
It allows more housing types in many areas, but your loan counts only legal units that exist today.
Yes. Lease income from student tenants counts.
The minimum credit score is 620.
Yes, up to 75% LTV, with seasoning that varies by program.
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