Vermont's ski towns and lake villages draw visitors in winter, summer and foliage season. The state has added its own surcharge on short-term rentals, and towns are writing their own rules.
In short: LendingStreet finances Vermont short-term rentals with DSCR loans that can qualify on projected rental revenue on some programs, starting at $150,000 with a 620 minimum credit score and no W-2s or tax returns. Vermont applies its meals and rooms tax plus an added surcharge to short-term rentals, and STR homes pay the non-homestead education tax rate. Burlington limits new non-owner-occupied STRs; most ski towns allow them with registration.
Stowe is Vermont's best-known resort town, with condos, townhomes and chalets near the mountain and a busy summer and foliage season. Killington and Okemo in Ludlow are large ski markets, and Mount Snow in West Dover and Stratton draw visitors from New York and southern New England. Sugarbush and Mad River Glen anchor the Mad River Valley around Warren and Waitsfield.
Summer markets include Lake Champlain, Lake Willoughby and the Northeast Kingdom, and towns like Woodstock and Manchester draw foliage and village visitors. Burlington has year-round demand from the university, hospital and waterfront.
| Market | Typical property | What drives bookings | Rule to check |
|---|---|---|---|
| Stowe | Condos, townhomes, chalets | Skiing, foliage, summer village trips | Town registration and zoning |
| Killington and Okemo | Ski condos, chalets | Skiing, mountain biking | Town rules; condo association limits |
| Mount Snow and Stratton | Condos, ski homes | Skiing for New York weekenders | Town zoning and registration |
| Burlington | Single-family homes, duplexes | University, hospital, lake | New non-owner-occupied STRs limited |
Vermont requires STR operators to register with the state for meals and rooms tax and to meet basic health and safety obligations. Towns can add registration, inspections and zoning rules, and several resort towns now require local STR registration. Burlington adopted rules that limit new non-owner-occupied short-term rentals.
Many ski-area condos have association rules on rental use, check-in and parking. Rural homes may be subject to Act 250 or local permits if they are expanded or subdivided. Ask the town clerk and zoning administrator for current rules before you buy.
On a long-term rental, the lease or a market rent estimate sets the income. On a nightly rental, some of our programs accept a projection of gross short-term rental revenue, usually from a third-party data report that looks at similar listings, bedroom counts and occupancy in the area.
That projected income is compared with the full monthly payment to get the debt service coverage ratio. If the property already operates as an STR, 12 months of booking history can support the figure. How each program adjusts a projection varies, and a low projection can sometimes be addressed with more down payment or a sub-1.0 program.
This example is illustrative and not a quote. Consider a two-bedroom condo near Stowe village bought for $545,000, with a revenue projection of $62,000 a year, about $5,167 a month. The monthly budget includes $680 in property taxes, insurance at $120 and HOA dues at $520.
Financed at 75% LTV, the loan is $408,750. Estimated principal and interest comes to about $2,900, the total payment to about $4,220, and the DSCR to about 1.22x. A 15% revenue shortfall would bring it to about 1.04x.
With 65% LTV instead, the loan is $354,250 and the total payment about $3,833, lifting the DSCR to about 1.35x. The table compares both.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Loan amount | $408,750 | $354,250 |
| Estimated principal and interest | $2,900 | $2,513 |
| Property taxes | $680 | $680 |
| Insurance and HOA dues | $640 | $640 |
| Total monthly payment | $4,220 | $3,833 |
| Projected monthly revenue | $5,167 | $5,167 |
| DSCR | About 1.22x | About 1.35x |
| DSCR if revenue is 15% lower | About 1.04x | About 1.15x |
Short stays in Vermont carry the state meals and rooms tax, and the state added a surcharge on short-term rentals in 2024. Some towns add a local option tax. Platforms collect much of it, but registration with the Department of Taxes is your job.
Vermont education property taxes use a homestead rate for primary residences and a non-homestead rate for second homes and rentals, so the seller's bill may not match yours. Rural homes often have wells, septic and long driveways, and insurers ask about heating systems, snow load and frozen pipes.
Ski towns peak from December through March, with holiday weeks and February school vacations at the top. Late September and October foliage brings a second rush, and summer has grown in Stowe and the lake regions. April and May, Vermont's mud season, and November before the lifts open are the slowest months.
The DSCR calculation uses principal, interest, taxes, insurance and HOA dues. Your own budget needs more. A short-term rental pays for cleaning and laundry between stays, utilities, internet, streaming, supplies, platform fees and often a local manager who takes a share of revenue. Furnishing a home before the first booking is a real upfront cost as well.
None of that is in the lender's ratio on most programs, which is why a property that only just clears 1.0x on gross projected revenue can still lose money in practice. Run your own net numbers before you sign.
Our investor loans are business-purpose loans on non-owner-occupied property. The guidelines below apply to 1-8 unit STRs, though maximum leverage can be lower on larger balances and 5-8 unit properties.
We look at the property first: whether it can legally operate as a nightly rental, what it should earn, and what it costs to carry. Then we size the loan so the ratio works. Start with the form below or call (877) 298-1001.
The state meals and rooms tax, a short-term rental surcharge added in 2024, and in some towns a local option tax. Register with the Department of Taxes.
Burlington limits new non-owner-occupied short-term rentals. Confirm the rules and any existing registration before buying there.
If the seller lived there, they paid the homestead education rate. Rentals pay the non-homestead rate, which is usually higher.
Killington has deep ski demand and growing summer traffic. Condo association rules, HOA dues and insurance still go into the payment and the ratio.
You can lower the loan amount, or a sub-1.0 DSCR program may fit. The financing team can run both options.
Some programs qualify it on a third-party revenue projection based on comparable listings. That is the usual path on a purchase.
The minimum is 620. Stronger credit and more equity can open more program options. No W-2s or tax returns are required.
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